Yogi Plc sells provisions through its stores located in various retail shopping centres in the major cities in the UK. It has recently been experiencing declining profitability and the board is wondering if this development is peculiar to the company or related to the sector as a whole. It is also not clear as regards the companys solvency. As such it has engaged a consulting firm that specializes in analysing corporate reports producing average ratios across many businesses to rate performance. Below are the ratios that have been provided by the consulting firm for Yogi Plcs business sector based on the year end of 30 June 2022. Debt to equity 38% Gross Profit margin 35% Operating Profit Margin 12% Return on year ended capital employed (ROCE) 16.6% Net Asset turnover 1.4 times Current ratio 1.25:1 Average inventory turnover 3 Times Trade payables payment period 64 days The financial statements of Yogi Plc for the year ended 30 September 2022, are: Income Statement 000 000 Revenue 224,000 Opening inventory 33,200 Purchases 175,600 208,800 Closing Inventory (40,800) (168,000) Gross Profit 56,000 Operating costs (39,200) Finance Costs (3,200) Profit before Tax 13,600 Income Tax Expense (4,000) Profit for the year 9,600 Statement of Financial Position 000 000 Assets Non - Current assets Property and shop fittings 102,400 Deferred Development expenditure 20,000 122,400 Current Assets Inventory 40,800 Bank 4,000 44,800 Total Assets 167,200 Equity and Liabilities Equity Equity shares of 1 each 60,000 Property revaluation reserve 12,000 Retained earnings 34,400 106,400 Non -current liabilities 10% loan notes 32,000 Current liabilities Trade payables 21,600 Current tax payable 7,200 28,800 Total equity and Liabilities 167,200 Note i) Net Asset is defined by the consulting firm as Total Assets less Current Liabilities ii) The deferred development expenditure relates to a one off payment for a franchise as a sole distributor of a particular product under negotiation but not yet concluded as at 30 September 2022 although payment has already been made. Required: (a) Compute the equivalent ratios for Yogi Plc that have been provided by the consulting firm for the business sector. (b) Write a report to the Board which assesses the profitability and solvency performance of Yogi Plc in comparison to its business sector averages. For clarity solvency is a measure of liquidity and gearing. Note: Ignore income Tax