Question is very long so that's why i post 3 photos

Total 23 marks ABC is an international supermarket chain selling food, clothes and household appliances with a 31 December year end. The finance director would like you to prepare some financial data and analysis to present to the board. He has provided the extracts from the financial statements to assist you in your analysis EXTRACTS FROM THE STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X9 (WITH COMPARATIVES) Revenue Cost of Sale Gross Profit Operating Profit Finance Costs 20X9 Sm 20,510 18,970 1.540 650 200 20X8 Sm 17,83 16,835 1,000 530 130 EXTRACTS FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20X9 (WITH COMPARATIVES) 20X9 20x8 Sm Sm Non Current Assets 9.100 8.390 Inventories 850 1,000 Total Current Assets 1,570 1.610 Equity 5,050 4.935 Equity Non Current Liabilities Trade Payables Total Current Liabilities 5,050 3,250 2,100 2,920 4,935 2,530 2,280 2,650 You are provided with accounting ratios for 20X8: Gross profit margin Operating profit margin ROCE Current ratio Inventory days Payable days Interest cover 5.6% 3.0% 7.1% 0.61 22 days 49 days 4.08 In addition, the finance director has also supplied the following information regarding events in the year ended 31 December 20X9 (1) Online food home delivery increased by 25%. (2) The number of stores grew by 10% in the year. This was financed by long term borrowings, (3) In the year ended 31 December 20X9, 40% of customers purchased at least one clothing item during the year whereas in the year ended 31 December 20X8, only 20% of customers did (4) A strong marketing campaign took place during the year (5) The new strengthened Grocery Supplier Code of Practice came into force to improve grocery retailers 12 (5) The new strengthened Grocery Supplier Code of Practice came into force to improve grocery retailers' treatment of suppliers. Required: . a. Calculate the ratios below for the year ended 31 December 20X9 and state whether it has improved or deteriorated . Gross profit margin . Operating profit margin Return on capital employed Current ratio Inventory holding period Payables payment period Interest cover (14 marks) . . . b. Provide one possible reason for the movement in each ratio (7 marks) c. Explain what is meant by the underlying assumption 'Going concern' when preparing financial statements. (2 marks) --INS ABC is an international supermarket chain selling food, clothes and household appliances with a 31 December year end. The finance director would like you to prepare some financial data and analysis to present to the board He has provided the extracts from the financial statements to assist you in your analysis. EXTRACTS FROM THE STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X9 (WITH COMPARATIVES) 20X8 Sm Revenue Cost of Sale Gross Profit Operating Profit Finance Costs 20X9 Sm 20,510 18,970 1,540 650 200 17,835 16,835 1,000 530 130 EXTRACTS FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20X9 (WITH COMPARATIVES) 20X9 20X8 Sm Sm Non Current Assets 9.100 8,390 Inventories 850 1,000 Total Current Assets 1.570 1.610 Equity 5,050 4.935 Non Current Liabilities 3.250 2.530 Trade Doushine 2 ton 2200 7 8 9 10 i 11 12 6 13 i Equity Non Current Liabilities Trade Payables Total Current Liabilities 5,050 3,250 2,100 2,920 4,935 2,530 2,280 2,650 You are provided with accounting ratios for 20X8. Gross profit margin Operating profit margin ROCE Current ratio Inventory days Payable days Interest cover 5.6% 3.0% 7.1% 0.61 22 days 49 days 4.08 In addition, the finance director has also supplied the following information regarding events in the year ended 31 December 20X9: (1) Online food home delivery increased by 25%. (2) The number of stores grew by 10% in the year. This was financed by long term borrowings (3) In the year ended 31 December 20X9, 40% of customers purchased at least one clothing item during the year whereas in the year ended 31 December 20X8, only 20% of customers did (4) A strong marketing campaign took place during the year (5) The new strengthened Grocery Supplier Code of Practice came into force to improve grocery retailers TOT TTC TICW SuongioTC Orocovy JUPPIO VOU VET TOUCO COTTO THI TOIC pruvu yrocory TOTS treatment of suppliers. Required: a. Calculate the ratios below for the year ended 31 December 20X9 and state whether it has improved or deteriorated Gross profit margin Operating profit margin Return on capital employed . Current ratio Inventory holding period Payables payment period Interest cover (14 marks) . b. Provide one possible reason for the movement in each ratio (7 marks) c. Explain what is meant by the underlying assumption 'Going concern when preparing financial statements. (2 marks)