1. The market value of the shares of the business at the end of the reporting period was $3.50 for 2011 and $2.50 for 2012 2. All sales and purchases are made on credit. 3. The cost of sales figure can be analyzed as follows: 2011 2012 $s millions $s millions Opening inventories 341 400 Purchases (Note 2) 2,899 3,475 3,240 3,681 Closing Inventories (400) (506) Cost of sales 2,840 3,175 4. At 31 March 2010, the trade receivables stood at $123 million and the trade payables at $83 million 5. A dividend of $40 million had been paid to the shareholders in respect of each of the years. 6. The business employed 13,995 staff at 31 March 2011 and 18,623 at 31 March 2012. 7. The business expanded its capacity during 2012 by setting up a new warehouse and distribution center. 8. At 1 April 2010, the total of equity stood at $338 million and the total equity and non-current liabilities stood at $538 million. Your assignment for Project: Part 1 is to: 1. In this project, provide a summary of all of the calculations and information from Exercise 3.1. (Be sure to submit the detailed E 3.1 separately.) 2. a. Provide a definition for gross profit margin and SOLVE for it using the above information from the balance sheet, income statement and notes. b. Make a simple chart showing the final solutions for all of the profitability ratios. Profitability Ratio 2011 2012 % % ROSF ROCE Operating profit margin Gross profit margin c. Answer the question using detailed information: What can you deduce from a comparison of the declines in the operating profit and gross profit margin ratios? 3. a. Provide a definition for sales revenue to capital employed and SOLVE for it using the above information from the balance sheet, income statement and notes. b. Provide a definition for sales revenue per employee and SOLVE for it using the above information from the balance sheet, income statement and notes.