The directors of the Cuttlefish Biscuit Corporation Limited have calculated a set of key accounting ratios for their biscuit manufacturing business. These are set out in the following table, together...

The directors of the Cuttlefish Biscuit Corporation Limited have calculated a set of key accounting ratios for their biscuit manufacturing business. These are set out in the following table, together with industry averages provided by the National Biscuit Manufacturers’ Federation.

Required: write a brief report to the directors of Cuttlefish comparing the ratios for their company with the industry averages. Identify any areas in which you think they could make improvements.