acer SUMMATIVE ASSESSMENT ASSIGNMENT) - 2020 SECOND SEMESTER FINANCIAL MANAGEMENT FMA 101 Comment on the profitability of the business by basing your comments on the Question 1 (33) Joseph is the owner of a business selling previously owned furniture and appliances. Joseph wants to implement strategies that will expand the business and increase its value and profitability. Joseph is very interested in making use of financial performance analysis tools to assess and manage the financial performance of the business He approached you and requested that you assist him with the preparation of a common-size statements of comprehensive income for the years ended 2018 and 2019. He presented you with the following statements of comprehensive income for 2018 and 2019 Statements of comprehensive income for the years ending 2018 and 2019 2019 2018 2018/2019 Revenue 266 000 230 000 e36 3D Cost of goods sold 160 000 142 000 18000 Gross profit margin 106 000 88 000 18000 General and administrative expenses 14 100 11 500 260S Marketing and selling expenses 16 700 15 200 1500 Operating profit 75 200 61 300 13 poo Interest expense 12 000 15 000 - 3 OOD Net profit before taxation 63 200 46 300 16900 Income tax 18 960 13 890 So70 Net profit for the year 44 240 32 410 Required: 1.1. Prepare a common-size statement of comprehensive income for the years 2018 and (10) 2019. Show ONLY the final answers in the statement. Round off the all the calculations to the closest whole number. 1.2. For each line item in the common-size statement, indicate whether the financial performance of the business for 2019 was "better", "the same" or "worse than that of 2018 1.3. profitability ratios included in the common-size statement. 11830 (5) (18) Question 2 12 In realise that