Fairfield Foods plc is a catering establishment which also owns shops and cafes. Due to increased competition the company has recently experienced declining profitability. In order to ascertain whether this is a sector-wide problem the directors wish to investigate this trend. As a result, they have acquired average ratios for the sector. Some of these equivalent ratios are shown below. Sector averages for the year ended 30 June 2020: Return on capital employed 18.6% Operating profit margin Net asset turnover 8.6% 2.01 Inventory holding period 4 days 80% Debt to equity The following information has been extracted from the draft financial statements of Fairfield Foods plc for the year ended 31 December 2017: Statement of profit or loss for the year ended 31 December 2020: Revenue Cost of Sales Gross Profit Operating expenses '000 201,600 (140,000) 61,600 (35,280) Profit from operating 26,320 Extracts from the Statement of financial position as at 31 December 2020 '000 Non-current assets 110,000 Inventory 7,920 Equity: Equity shares of 1 each 34,000 Revaluation surplus 10,800 Retained earnings 20,960 65,760 Non-current liabilities: 10% bank loan 28,800 Other relevant information to Fairfield Foods plc: (1) In 2016, Fairfield Food plc acquired a popular brand name. At 31 December 2017, the brand represented 20% of non-current assets. The remaining 80% of non- current assets comprises the property from which Fairfield Foods operates and its