Campbell Ltd (cont.): After a senior executive planning meeting, the following summary of minutes has been extracted. The focus of the meeting was the business operations planning, financing and investment for the year ending 31 December 2021: Our share of the total market for, the year ended 31" December 2020 was 10% (as measured by sales turnover). Our markets are growing on average and it is expected that, for the coming year, the total market (based on sales) will grow by 5% and, because of strong customer relationships and high-standing in many countries, we hope to exploit our market strength to increase our share of the market to 12.5% (by sales turnover). Cost management is challenging at this time and, with effort, we hope and expect to maintain our profit to sales ratio (profit margin) at its current level of 10%. Increased operating activity will require increased financial investment. The total of our investments next year will be 15m. This finance will be used to increase our fixed assets value to 105m with the balance of the investment applied to working capital resources. The sources of the new investment finance will maintain the existing ratio of equity finance (80%) to debt finance (20%). It is hoped that our investment and financing plans will increase both the ROI and ROE and be satisfactory to our investors. Required: Using the financial data and meeting minute's summary provided above: a. Re-construct the ratio pyramid (Du Pont system of ratio analysis) from the data and information provided above, for the year ending 31st December 2021 to evaluate the expected 'return on investment' and 'return to equity' ratios. b. Re-construct the summarised financial data (planned) for the year ending 31st December 2021. c. Explain the interrelationship between the different classifications of ratios and comment on the use of accounting ratios as financial targets (controls) including any other practical measures the company might take to meet the described market and investor expectations. Show all workings. Campbell plc is a multi-national organisation, manufacturing and distributing a wide range of medical materials and products to health service providers all over the world. You are employed in the finance office of the company and, in preparation for a management review and planning meeting, have prepared the following summary financial data extracted from the financial statements for the year ended 31" December 2020 Campbell Ltd Summarised financial data For the year ended 31 December 2020 Net operating income 16m Em Sales turnover 160 Operating costs and expenses 144 Fixed assets 95 Net current assets (working capital) 30 Long-term debt finance 25 Campbell Ltd Ratio pyramid (Du Pont system of ratio analysis) Based on summarised financial data For the year ended 31 December 2020 Return on equity Return on investment 12.8% Net operating income to sales 10.0% X Sales 160m 16.0% X Sales to total assets 128.0% Total assets/ Equity 125.0% Total assets 125m