A financial analyst obtains the annual report of Qantas and examines the following information from the income statement: 2017 2016 $M $M REVENUE AND OTHER INCOME Net passenger revenue 13,857 13,961 Net freight revenue 808 850 Other 1,392 1,389 Revenue and other income 16,057 16,200 EXPENDITURE Manpower and staff related 4,033 3,865 Fuel 3,039 3,250 Aircraft operating variable 3,436 3,346 Depreciation and amortisation 1,382 1,224 Impairment of cash generating unit Impairment of specific assets Non-cancellable aircraft operating lease rentals 356 461 Share of net loss of investments accounted for under the equity method Other 2,434 2,411 Expenditure 14,687 14,557 Statutory profit before income tax expense and net finance costs 1,370 1,643 Finance income 46 65 Finance costs (235) (284) Net finance costs (189) (219) Statutory profit before income tax expense 1,181 1,424 Income tax expense (328) (395) Statutory profit for the year 853 1,029 Required: (a) Qantas reported a significant amount of "Other revenue and income" and "Other expenditure". List two possible items for "Other revenue and income" and two possible items for "Other expenditure". (4 marks) (b) Public companies usually have various incentives to manage their earnings. List two possible incentives for Qantas to manage earnings. Also list two possible reasons that Qantas will NOT engage in earnings management. (10 marks) (c) Calculate the net profit margin for Qantas in 2017 and 2016. Explain why the net profit margin has changed. (Hint: a common-sized income statement will be helpful). (10 marks) (d) The Qantas brand is estimated to be worth over $2 billion. Can Qantas recognize the value of its brand on its balance sheet? Why or why not? (6 marks)