Go online for the financial statements of Cadbury, plc. and to Appendix A for the financial statements of the Nestlé Group.

Required:

1. What was the cost of goods sold for each company's most recent fiscal year? Where did you find the information?

2. Compute the percentage of cost of goods sold to sales for each company if possible. Compute the same ratios for the previous two fiscal years. Access the company's annual reports for previous years for information that is not available in the annual report for 2008.

3. Compute each company's net profit margin ratio for the years shown in its annual report. What do your results suggest about each company over the two-year period?

4. Compute each company's return on equity ratio for the most recent year. Which company is more profitable? Explain.