Required:a. Calculate the following ratios for Sweets plc for 2021 and 2020, showing the formulas and workings:1- ROCE2- ROE3- Earnings per share4- Net profit margin5- Asset turnover6- Stock holding days7- Debtors collection period8- Current ratio9- Gearing ratio10- Interest cover QUESTION 2Sweets plc is a long-established sweets and confectionery manufacturer. All products are manufactured in the UK, butsales are made worldwide. It is a growing but competitive market. Given below are extracts from their financialstatements,RevenueCost of salesGross profitProfit and Loss statement for the year ended 31st December2020£m6,441(3,096)3,345Distribution costsMarketing and selling costsAdministrative expensesOperating profitProfit/loss on sale of fixed assetsInvestment incomeInterest payableProfit/(loss) before taxationTaxationProfit for the year2021£m6,738(3.235)3,503(437)(1,324)(937)8051922(226)620(189)431(422)(1,274)(950)699(5)26(181)539(173)366 i.ii.Non- Current assetsIntangible assetsProperty, plant and equipmentInvestmentsCurrent assetsInventoryTrade receivablesInvestmentsCashTotal assetsCurrent liabilitiesTrade payablesOther creditorsStatement of Financial Position as at 31st December2021£mAdditional information:Non current liabilitiesLoans and other borrowingsNet assetsEquityOrdinary share capital (50p shares)Share premiumRetained profits5,4851,6133357,4337081,2491452012,3039.736(583)(1,928)(2,511)(4.137)3,0883001,0711.7173,088During 2021 a total dividend of £255m was paid (2020: £242m)The average share price during 2021 was £5.12 (2020: £4.00).2020£m5,8091,6053187.7326591,2872321772,35510,087(655)(2,391)(3,046)(4.129)2,9123001,0711,5412,912

As per our protocol only first three sub-parts are solved as there are 10 sub-parts in the question…

Answered: ROCE 2- ROE 3- Earnings per share

Business

Accounting

ROCE 2- ROE 3- Earnings per share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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