Accounting 2, question paper of October/ November 2013, can you please guide me step by step to the answer...

QUESTION 3 (24 marks) (29 minutes) OCTOBER/NOVEMBER 2013 The directors of Great Lawn Lid are concemed about their latest financial results and have asked you to analyse some of their financial information You are given the following extract from the comparative statement of profit or loss and other comprehensive income of Great Lawn Ltd for five years: Additional information: 1 Great Lawn Ltd is an expert in landscaping They offer a professional garden design service and have a large customer base. 2. in 2009, a new compettor, Green Gardens, entered the market and offered special pnces to customers. However, in the following years the old customers retumed to Great Lawn due to their excellent services 3 Great Lawn Ltd expanded their marketing campaigns in 2011 4 In 2012 govemment increased the minimum wages and Great Lawn Ltd had to retrench a large number of employees, hence also losing some customers Employee costs are included in the operating costs. 5. The amount of credit sales is 50% of the relevant year's revenue (for 2012 and 2011) 6. The balance of the trade and other debtors at the end of 2012 was A1 013000 (2011 R985 000) REQUIRED: a) Redraft the extract of the comparative statement of profit or loss and other comprehensive income of Great Lawn Ltd for frve years by using the following techniques' (Clearly indicate in the heading of each case the technique that was used) (i) Indexed statements [Round your answer to no decimal place] (ii) Common size statements [Round your answer to one decimal place] (15) b) Provide context to (comment and interpret) the financial analysis done in (a) above with reference to the additional intormation supplied to you c) Calculate the following ratios only for 2012 and 2011 by using the ratio analysis technique (Clearly indicate the specilic ratio calculated in each case ) (2) (i) Net proit margin (ii) Recervable days (debtors' collection period) (4) [24]