The following summarised information is from Vodafone plc financial statements in 20x7 and 20X8 (adapted). The company is a British multinational telecommunications company, which offers a broad range of communication services and broadband to both consumers and enterprises. Vodafone owned and operated networks in 22 countries. Vodafone pic is listed on the London Stock Exchange, where it is a constituent of the FTSE 100 Index. Statements of financial position as at 31 December 20x8 20x8 20X7 m m Non-current assets 107,660 111,947 Current assets Inventories 581 576 Trade and other receivables (1) 9,975 9,861 Other current assets 22,721 23,465 Cash and cash equivalents 4,674 8,835 Total assets 145,611 154,684 Equity Share capital Share premium Other reserves Retained earnings 4,796 150,197 20,309 (106,695) 4,796 151,808 22,966 (105,851) 37,980 38,576 Non-current liabilities Loans Current liabilities Short-term borrowings Trade and other payables (2) Income tax payable Other current liabilities 10,351 16,242 541 11,890 12,051 16,834 661 12,843 Total equity and liabilities 145,611 154,684 Income statement for the year ended 31 December 20X8 20x8 20X7 m m Revenue 46,571 47,631 Cost of sales (32,771) (34,576) Gross profit 13,800 13,055 Operating expenses 9,501 9,330 Operating profit 4.299 3,725 Finance income 653 473 Finance costs (=interest payable) (1,074) (1.406) Profit before tax 3,878 2,792 Taxation 879 (4,764) Net profit for the period 4,757 (1,972) Notes: Trade receivables 4,967m (20X8) and 4,973m (2087). Trade payables 6,185m (20x8) and 6,212m (20/7). Required: 3.1) Calculate the following ratios for Vodafone plc for 20x8 and 20x7. You need to present your workings and show the ratios to 3 significant figures. i. Gross profit margin ii. Operating profit margin iii. Return on capital employed iv. Current ratio Acid test ratio vi. Receivable days vii. Payable days viii. Inventory turnover ix. Capital gearing Interest cover (20 marks) V. X. 3.2) Using your ratio calculations and the financial statements given, analyse Vodafone plc's performance over 20X8 and 20X7. You have to consider the market in which Vodafone plc operates. 10 market