Question: 2. Question on interpretation - Semester two Chokko plc (Chokko) develops and sells sweets and confectionary to wholesalers. The draft Directors' Report for the March

2. Question on interpretation - Semester two Chokko plc (Chokko) develops and sells sweets and confectionary to wholesalers. The draft Directors' Report for the March 2020 results included the following comments: - "Our share of the confectionary market has grown significantly, because of the bankruptcy of a key competitor, and our large investment in television advertising to raise our profile." - "The company raised new funds which have been used to expand production lines to meet this demand, including new buildings, plant and equipment." - "Our new early settlement discount scheme for credit customers has reduced our receivable days to a record low and we are keeping a close watch on our working capital." Chokko's draft financial statements, and associated notes, are shown below: Question 2 continued overleaf Question 2 continued neyuireu. a) Produce at least 6 more ratios, in addition to those provided above, to aid your analysis. (12 marks) b) Analyse the above information, incorporating your ratios in (a), to assess Chokko plc's - profitability, - liquidity, - efficiency and - investment potential (48 marks)
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