Assignment 2 will cover the learning outcomes(LOs) 2 and 3: Assignment 2 will be accessed by a portfolio of evidence compiled of a detailed letter to a named person with supporting financial statements. The letter must be clearly worded, well-structured and should make use of appropriate business language and terminology. The letter can algo include clearly-labelled tables and charts. It will accompany and support the appropriately constructed financial statements (Income Statement and Statement of Financial Position) for the business in question. The word count is 2,000-2,500 words, although you will not be penalized for going under or over the total word limit. A bibliography should be provided using the Harvard referencing system (or an alternative system). Inaccurate use of referencing may lead to issues of plagiarism if not applied correctly. Assignment activity and guidance: You are initially working SMEs that have been trading for two years and which now need annual trading statements to be compiled and submitted in line with government requirements. You have been given: " An extended trial balance for a small business, including accruals, prepayments and figure: for bad debts and depreciation " A range of comparative key performance ratios from the previous year. Your supervisor, one of the firm's Key Account Managers, has asked you to compile the year-end financial statements ready for submission and provide some detailed analysis of the figures produced, which will be presented in the form of an accompanying letter. Specifically, you will undertake the following: 1. Weing the case study data in Excel produce an Income Statement and the statement of Financial position for the Sample organisation (see attached Case Study). 2. Write an accompanying letter to the client that will be sent with the completed financial statements. The letter needs to include: " Calculation of relevant profitably, liquidity and Efficiency ratios " Critical evaluation of the performance to the business over the 2 years on year (making reference to ratios you have calculated and data provided from the previous year), with