You are provided with the details of Trusts financial statements as below:

Using the accounts, and notes, for Trust plc, write a report of 2000 words to management on the performance of the company. This report should be done by analysing the following ratios for each of the two years presented. 1. Profitability Ratios including Return on Capital Employed, Operating Profit and Gross Profit margin 2. Efficiency ratios including Inventory Turnover days, Account Receivable Days and Account Payable Days 3. Liquidity Ratios including Current ratio and acid test ratio 4. Investment ratios including Earnings per share and Price Earnings ratio 5. Financial Structure ratios including interest cover and gearing ratio marks)

Statements of Financial Position as at 31 March 2020 2021 m m m m Assets Non-current assets Property, plant & equipment Land & buildings Fixtures & fittings 450 150 600 500 180 680 Current assets Inventories Trade receivables Cash at bank 350 200 10 400 300 20 560 1,160 720 1,400 Total assets Equity & liabilities Equity 1 ordinary shares Retained earnings 400 210 610 400 220 620 300 400 Non-current liabilities Borrowings -5% loan notes (secured) Current liabilities Trade payables Taxation Bank overdraft 200 30 20 300 20 60 250 1,160 Total equity & liabilities 380 1,400 Revenue 3000 Cost of sales -2100 Gross profit 900 Operating expenses -350 Operating profit 550 Interest payable -50 Profit before taxation 500 Taxation -60 Profit for the year 440 Notes to the accounts: 1. The market value of the shares of the business at the end of the reporting period was 3.00 for 2020 and 2.00 for 2021. 392288 28918 2. All sales and purchases are made on credit 3. The cost of sales figures can be analysed as follows: 2020 2021 m m Opening inventory 350 250 Purchases 2000 3,000 2,350 3,250 Closing inventory -250 -400 Cost of sales 2100 2,850 At 31st March 2019 the trade receivables stood at 250m and the trade payables at 200m 4. 5. A dividend of 40m had been paid to the shareholders in respect of each of the years 6. The business employed 14,000 staff at 31st March 2020 and 19,000 at 31st March 2021 7. The business expanded its capacity during 2021 by setting up a new warehouse and distribution centre At 1st April 2019, the total equity stood at 450m and the total of equity and non-current liabilities stood at 650m. 8. Statements of Financial Position as at 31 March 2020 2021 m m m m Assets Non-current assets Property, plant & equipment Land & buildings Fixtures & fittings 450 150 600 500 180 680 Current assets Inventories Trade receivables Cash at bank 350 200 10 400 300 20 560 1,160 720 1,400 Total assets Equity & liabilities Equity 1 ordinary shares Retained earnings 400 210 610 400 220 620 300 400 Non-current liabilities Borrowings -5% loan notes (secured) Current liabilities Trade payables Taxation Bank overdraft 200 30 20 300 20 60 250 1,160 Total equity & liabilities 380 1,400 Revenue 3000 Cost of sales -2100 Gross profit 900 Operating expenses -350 Operating profit 550 Interest payable -50 Profit before taxation 500 Taxation -60 Profit for the year 440 Notes to the accounts: 1. The market value of the shares of the business at the end of the reporting period was 3.00 for 2020 and 2.00 for 2021. 392288 28918 2. All sales and purchases are made on credit 3. The cost of sales figures can be analysed as follows: 2020 2021 m m Opening inventory 350 250 Purchases 2000 3,000 2,350 3,250 Closing inventory -250 -400 Cost of sales 2100 2,850 At 31st March 2019 the trade receivables stood at 250m and the trade payables at 200m 4. 5. A dividend of 40m had been paid to the shareholders in respect of each of the years 6. The business employed 14,000 staff at 31st March 2020 and 19,000 at 31st March 2021 7. The business expanded its capacity during 2021 by setting up a new warehouse and distribution centre At 1st April 2019, the total equity stood at 450m and the total of equity and non-current liabilities stood at 650m. 8