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Company Xcel Ltd announces an increase of 10% in net profit for the year to S 1.700 000 As a potential investor in the company:

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Company Xcel Ltd announces an increase of 10% in net profit for the year to S 1.700 000 As a potential investor in the company: a) What does this announcement tell you? b) What other information do you require for deciding whether or not to invest in the company? a) What does this announcement tell you? A. The announcement tells us that the rate of growth of the owners' claim in the company as a result of operations has increased over the past year. B. The announcement tells us that the owners' claim in the company has decreased over the past year. ? C. The announcement tells us that the company has 10% more cash on hand than it had in the previous year. ?D. The announcement tells us hat the difference between he owners claim n he company and the creditors' cai b) What other information do you require for deciding whether or not to invest in the company? n the company has increased over he past year. O A. It is important to see the statement of financial position of the company to determine whether the company is able to cover all of its liabilities. It would also be helpful to know the company's plans for future growth O B. It is important to determine the depreciation method that the company uses, as well as how old its depreciable assets are, to determine how much it is losing to depreciation. ?C. t is mportant to see the statement o cash o s o e company to determine whether the company spends more money an takes n would also be hel to now how on athe compan hase sted O D. I Is important to see the income statement o the company to determine whether the company has more expenses than it has revenues t would also be helpful to know the number of employees that the company has

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