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

Required:

1. Compute the gross profit percentage for both companies for the current year and the previous year. What do the changes in the ratios suggest?

2. Compute the trade receivables turnover ratio for both companies for fiscal years 2007 and 2008. The Nestlé Group had 11,240 Swiss francs in trade receivables (net) at December 31, 2006, and Cadbury had \(£ 932\) in trade receivables (net) at the same date. What accounts for the change in these ratios?