(i) Marks and Spencer Plc M&S is one of the UK's leading retailers. The company management is committed to making every moment special for customers, through our high quality, own-brand Food, Clothing & Home products in 1,433 stores worldwide and online. M&S sells beautifully designed, high quality, own-brand clothing and homeware through 343 full-line stores, Outlets and M&S.com website. The Womenswear, Menswear,Kids wear, Lingerie, Beauty and Home products account for 40% of UK turnover. Further information can be found through Marks and Spenser website and recent annual report online. (ii) Next PIc NEXT retail chain was launched in February 1982 and the first store opened with an exclusive coordinated collection of stylish clothes, shoes and accessories for women. Online shopping was introduced in 1999 and the entire book became available to shop from on the internet, page by page - another first in-home shopping in the UK. Today NEXT trades from more than 500 stores in the UK and Eire and around 200 stores in 40 countries overseas. Over the last few years several larger format fashion and home stores have opened across the UK. Further information can be found through Next Plc website and recent annual report online: Required: Prepare a report for potential investors which analyses the financial information for both companies and give recommendations which company would be a more suitable for investment. a) Calculate 10 financial ratios as given below for two years (2018 and 2019) Current ratios P/E ratio Quick ratios Earnings per share Net Profit Margin Return on capital employed Gross Profit margin Average inventories turnover period Gearing ratios Dividend pay-out ratio (15 marks) b) Analyse performance, financial position and investment potential of both companies. You should use charts to compare performance of both companies. You will need to look at the audited financial statements and carry out further research to explain the performance of each company for two years. (35 marks) c) Provide recommendations of how the financial performance of the poorly performing company can be improved. (10 marks) d) Discuss the limitations of relying on financial ratios to interpret a company's performance. (10 marks) (Total: 70 marks) (You are expected to search for more information on both companies and cite the material correctly)