Answer Question A

Southampton Plc and Northampton Plc operate in the same industry. These companies' financial statements for the year ended 31 December 2021 are summarised below. Statement of Financial Position as at 31 December 2021 Additional Information - As at 31.12.2021, the market price per share of Southampton PLC and Northampton PLC were 5 and 6 respectively. - The number of ordinary shares outstanding for the year ended 31.12.2021 for Southampton PLC and Northampton PLC were 2,000,000 and 1,000,000 respectively. (a) Calculate the following ratios for both companies 1. Return on capital employed (ROCE) 2. Operating profit margin 3. Gross profit margin 4. Return on Equity 5. Current ratio 6. Acid test ratio 7. Interest cover ratio 8. Debt to Equity ratio 9. Earnings per Share (EPS) 10.P/E Ratio Show the formulas and workings