The comparative financial statements of Stratum Ltd are shown below and on the next page.

STRATUM LTD Comparative Statements of Profit or Loss for the years ended 30 June ($000)
		Note		2017			2016
	Revenue Expenses, excluding finance costs Finance costs	2 4		$	16 000 13 705      —		$	13 750 11 965       —
	Profit before income tax expense Income tax expense				2 295     878			1 785     535
	Profit			$	1 417		$	1 250

STRATUM LTD Comparative Statements of Financial Position as at 30 June ($000)
		2017			2016
	Current assets Cash and cash equivalents Trade and other receivables Inventories	$	80 380    770		$	100 335    720
	Total current assets		1 230			1 155
	Non-current assets Other financial assets Property, plant and equipment		140 3 400			160 2 785
	Total non-current assets		3 540			2 945
	Total assets		4 770			4 100
	Current liabilities Trade and other payables (Note 14)		505			500
	Total current liabilities		505			500
	Non-current liabilities Long-term borrowings		1 750			1 750
	Total non-current liabilities		1 750			1 750
	Total liabilities		2 255			2 250
	Net assets	$	2 515		$	1 850
	Equity Share capital Retained earnings	$	1 600    915		$	1 500    350
	Total equity	$	2 515		$	1 850

STRATUM LTD Statements of Changes in Equity for the years ended 30 June ($000)
	Share capital Ordinary: Balance at start of period Issue of share capital	$	1 500    100		$	1 500     —
	Balance at end of period		1 600			1 500
	Retained earnings Balance at start of period Total recognised profit for the period Dividend paid — ordinary		350 1 417   (852	)	(	200 1 250  1 100	)
	Balance at end of period	$	915		$	350

Notes to the financial statements ($000)
Note 2:	Revenue	2017	2016
	Sales revenue (net)	$16 000	$13 750
Note 4:	Expenses
	Cost of sales	9 000	8 850
	Selling and distribution expenses	2 150	1 730
	Administration expenses	1 925	1 385
Note 14:	Payables
	Trade creditors	395	360
	Other creditors and accruals	110	140

Required

A.   Calculate the changes in the financial statements from 2017 to 2016 in both dollar amounts and percentages.

B.   Prepare common size financial statements for 2017 and 2016.

C.   Comment on any relationships revealed by the horizontal and vertical analyses.