Dull Limited is a small manufacturing company which commenced trading in 1991. The Managing Director, Mr Evans, is of the opinion that the company is performing extremely well in a period of high inflation and recession. However, the company’s bankers are concerned at the high level of overdraft, and Mr Evans has engaged you, as Management Consultant, to report on the company’s performance. The following information is made available to you:

Requirement You are required, on the basis of the information supplied, to prepare a report for the Managing Director of Dull Limited, commenting upon the performance and financial position of the company.

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SUMMARISED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the Years Ended 30 June Revenue Profit before interest Interest Profit before tax Income tax expense Retained earnings 2015 2016 000 000 |^ 100 140 11 13 5 7 6 6 2 4 4 SUMMARISED STATEMENTS OF FINANCIAL POSITION Assets Non-current assets Current assets Inventories Receivables Total assets 5 3 2 2017 000 196 14 as at 30 June 2015 2016 2017 000 000 000 40 56 78 - 20 20 40 80 112 28 39 28 43 56 82 160