Low Extract information from the Income Statement for year to 31 March 2020 Revenue Operating profit Finance costs Profit before income tax Income tax Profit for the year Dividend paid in the year 2019 ' 000 99,360 108302.4 10,760 (3,840) 6,920 (2,420) 4,500 1,100 veral Capital 2020 + 3 employed Comparative ratio information for Cygnus' industry (averages) Price Earnings Ratio Gearing Ratio (%) Current Ratio Acid Test Ratio Return on Capital Employed (%) Operating Margin (%) 20 52.4 1:1 1:1 16.5 9.0 ment non-a Cygnus' shares are currently traded at 15.0 p. et tumowe Required: a) You are a consultant for Cygnus plc. Calculate the following ratios for Cygnus for the financial years ended 31 March 2019 and 2020 where possible: pital tur pital 1. Return on Capital Employed 2. Operating Margin 3. Current Ratio 4. Acid Test Ratio 5. Inventory Holding Period 6. Creditors Payment Period 7. Gearing Ratio 8. Price Earnings Ratio carina (15 marks) tal b) Prepare a short report (with five meaningful comments) based on ratios calculated for part a) to present to Cygnus' directors in support of the new term loan. Use industry averages as benchmarks for your analysis whenever possible. (5 marks) [Total: 20 Marks] Low Extract information from the Income Statement for year to 31 March 2020 Revenue Operating profit Finance costs Profit before income tax Income tax Profit for the year Dividend paid in the year 2019 ' 000 99,360 108302.4 10,760 (3,840) 6,920 (2,420) 4,500 1,100 veral Capital 2020 + 3 employed Comparative ratio information for Cygnus' industry (averages) Price Earnings Ratio Gearing Ratio (%) Current Ratio Acid Test Ratio Return on Capital Employed (%) Operating Margin (%) 20 52.4 1:1 1:1 16.5 9.0 ment non-a Cygnus' shares are currently traded at 15.0 p. et tumowe Required: a) You are a consultant for Cygnus plc. Calculate the following ratios for Cygnus for the financial years ended 31 March 2019 and 2020 where possible: pital tur pital 1. Return on Capital Employed 2. Operating Margin 3. Current Ratio 4. Acid Test Ratio 5. Inventory Holding Period 6. Creditors Payment Period 7. Gearing Ratio 8. Price Earnings Ratio carina (15 marks) tal b) Prepare a short report (with five meaningful comments) based on ratios calculated for part a) to present to Cygnus' directors in support of the new term loan. Use industry averages as benchmarks for your analysis whenever possible. (5 marks) [Total: 20 Marks]