Dear Tutors,

Can you please help with the attached.

(20) 1.1.1 1.1.2 QUESTION 1 REQUIRED Study the information provided below and answer the following questions: Explain the change that possibly took place during 2017 in respect of: Long-term borrowings Property, plant and equipment. Calculate the administrative expenses for 2017. Was there a change to the company tax rate of Sinbad Ltd during 2017? Explain. Critically assess the performance of the company from the information provided. Recommend 2 ways in which the company can improve its profitability. INFORMATION The Statement of Comprehensive Income and simplified extract of the Statement of Changes in Equity for Sinbad Ltd are provided below: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: Sales Cost of sales Gross profit Other operating income Distribution expenses Administrative expenses Operating profit Finance income Finance expenses Profit before tax Company tax Net profit 2017 (R) 13 500 ooo (5 850 000) 7 650 ooo 450 ooo (4 500 000) 1 800 ooo 16 500 (13 050) 1 803 450 (541 035) 1 262 415 2016 (R) 12 ooo ooo (5 100 000) 6 900 ooo 420 ooo (4 050 000) 1 620 ooo 8 100 (26 400) 1 601 700 (480 510) 1 121 190 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017 Balance on 31 December 2016 Profit for the year Dividends Balance on 31 December 2017 ADDITIONAL INFORMATION Depreciation for the year amounted to: 2017: R500000 2015: R900000. 4 350 ooo 1 262 415 (570 000) 5 042 415 Company tax is calculated as a percentage of the pre-tax profit.