Question 2 Frankfurt Limited and Madrid Limited are both engaged in retailing, but they seem to take a different approach to it according to the following information: Frankfurt Madrid Ltd Ltd 20% 17% 17% 30% 18% 63 days 21 days Return on capital employed (ROCE) Return on ordinary shareholders' funds (ROSF) Average settlement period for trade receivables Average settlement period for trade payables Gross Profit margin Operating profit margin Average inventories turnover period 50 days 45 days 40% 15% 10% 10% 52 days 25 days (a) Describe what this information indicates about the differences in approach between the two businesses. If one of them prides itself on personal service and one of them on competitive prices, which one do you think is which and why