Mosaic PLC is a British apparel retail chain with shops across England and Wales. The company is best known for its members programme that allows multi-item purchases at heavily discounted prices. The company has both online and high street presence but has recently reduced the latter to focus on their internet sales and social media marketing.

Income Statements for Mosaic PLC for the year ended 31 March

	2022	2021
	m	m
Sales Revenue	1,980	1,860
Costs of Goods Sold	1,030	990
Gross Profit	950	870
Staff Costs	400	380
Rent and Rates	210	200
Depreciation	140	130
Other Costs	50	40
Operating Profit (PBIT)	150	120
Finance Costs	30	25
Profit (loss) before Taxation	120	95
Taxation	25	20
Profit (loss) for the period	95	75

Statements of Financial Position for Mosaic PLC as at 31 March

	2022	2021
	m	m
Non-current Assets
Property, Plant & Equipment	1,400	1,320
Purchased Goodwill	420	370
Total Non-current Assets	1,820	1,690
Current Assets
Inventories	420	380
Trade Receivables	60	40
Cash at Bank	390	380
Total Current Assets	870	800
Total Assets	2,690	2,490
Equity
Share Capital (Equity Shares of 2 each)	1100	1100
Retained Earnings	350	300
Total Equity	1,450	1,400
Non-current Liabilities
Bank Loan	950	850
Total Non-current Liabilities	950	850
Current Liabilities
Trade Payables	270	220
Taxation Payable	20	20
Total Current Liabilities	290	240
Total Equity and Liabilities	2,690	2,490

Additional Information:

As at 31 March 2020; Capital Employed was 2,250 (m) and Inventories were 360 (m).

Question 1

Using the financial data for Mosaic PLC, you are required to calculate the following ratios for 2022 and 2021. For each ratio you MUST show the calculations used to reach your solution. You need to show a nominator and denominator in each calculation. A failure to provide your workings will lead to deductions of up to 5 marks for this question.

1. Average Inventories Turnover Period
2. Return on Capital Employed (ROCE) Ratio
3. Gross Profit Margin
4. Gearing Ratio
5. Acid Test Ratio