Income Statement:

• Sales Revenue: £45,678 million
• Cost of Goods Sold: £35,432 million
• Gross Profit: £10,246 million
• Operating Expenses: (£8,765 million)
• Net Income: £1,481 million

Balance Sheet (as of December 31, 20XX):

Assets (£):

• Cash and Cash Equivalents: £876 million
• Inventories: £2,987 million
• Property, Plant and Equipment: £18,543 million (Net of Accumulated Depreciation)
• Total Assets: £43,765 million

Liabilities & Equity (£):

• Trade and Other Payables: £7,543 million
• Borrowings: £9,876 million
• Total Liabilities: £17,419 million

Equity (£):

• Share Capital: £4,298 million
• Retained Earnings: £22,345 million
• Total Equity: £26,643 million

Total Liabilities & Equity: £43,765 million

Additional Information:

• Tesco PLC declared and paid dividends of £543 million during the fiscal year.
• Depreciation expense for the year amounted to £985 million.
• The corporate tax rate applicable to Tesco PLC is 20%.

Requirements:

a. Calculate Tesco PLC's:

i. Return on Assets (ROA) - Interpret how efficiently the company is utilizing its assets to generate profit.

ii. Return on Equity (ROE) - Evaluate the company's profitability from the perspective of its shareholders' equity.

iii. Gross Profit Margin - Assess the company's ability to generate profit from its sales after accounting for the cost of goods sold.

iv. Net Profit Margin - Analyze the proportion of revenue that translates into net income after all expenses have been deducted.

b. Discuss how the calculated ratios reflect Tesco PLC's financial performance and efficiency.