Analysis Investment

Question 2 (30 marks) Below are summarised financial statements for Wm Morrison Supermarkets plc for the 52 weeks ending 2 February 2020 and 2019: Income Statement for the years ending 2 February Turnover Cost of sales Gross profit Operating expenses Operating profit/loss Finance expense Finance income Other Profit/loss on ordinary activities before taxation Tax on profit on ordinary activities Profit /loss on ordinary activities after taxation Balance sheet as at 2 February 2020 million 17,536 - 16,907 629 108 521 111 24 1 435 87 348 2019 million 17,735 - 17.083 652 220 432 153 23 303 70 233 2020 million 2019 million 9,598 9,287 Non-current assets Current assets Inventories Debtors Other Cash 660 353 713 344 19 303 1,379 308 1,322 Current liabilities Trade creditors Other liabilities 3,051 345 3,396 3,070 279 3,349 Non-current liabilities 2,983 2,992 Net assets 4.541 4.325 Equity Shareholders'funds 4.541 4.325 Further information:- 2020 2019 2,382.5 2,356.8 Authorised shares (millions) Dividend Paid (millions) 302 289 Required: D) From the above information calculate financial ratios which you consider most appropriate for assessing the financial position of Wm Morrison Supermarkets plc for the years ending 2 February 2020 and 2019. To gain full marks you should calculate at least ten ratios, giving the ratio definitions, and calculations should be clearly shown. (12 marks)