a) Provided with the extra information below in Appendix 1 you must firstly prepare an income statement for the year ending 31^st March 2021 and a balance sheet as at that date. Also prepare a cash flow statement for publication for the years ending 31^st March 2020 and 2021 using the indirect method.

b) Using the information provided in the Bread King Ltd Annual Report for 2020 located under the Assessment section on Moodle, and your financial reporting statements prepared above, calculate the following ratios for each of the three years 2019, 2020 and 2021:

1. Profitability ratios: ROE, ROCE, Operating profit margin and gross profit margin
2. Efficiency ratios: Trade receivables days, Trade payables days and inventory days, OCC
3. Liquidity ratios: Current ratio and Acid test ratio
4. Gearing ratios: Gearing and Interest cover
5. Investment ratios: EPS and Dividend cover

Appendix 1 2021 Extracts from Income Statements and Balance Sheets Sales Cost of Sales Distribution costs Admin costs Interest expense (paid) Taxation Retained Profit 15,080 7,680 960 2,432 960 512 1,896 Non-current assets at cost 9,212 Accumulated depreciation 2,816 Closing Inventory at cost 2,120 Trade receivables 3,160 Prepayments 584 Overdraft 4,032 Trade payables 576 960 Accruals Taxation payable 512 Loan (repayable 2027) 640 Ordinary share capital 1 1,300 Retained earnings/Reserves 4,240 There have been no disposals of non-current assets during any of the three years. During each of the years ended 31st March 2019, 2020 and 2021 dividends were announced for year and paid in cash on the last day of that year