eferto the following comparative financial statements for ZAMBEEF Ltd$.$Forthe

years ending $2015$ and $2016$ respectively. Answer the questions that follow

ZAMBEEF Ltd

Consolidated Income Statement

Year ended December$31($in K millions$)$

$20162015$

$($Total sales $610\mathrm{.}1578\mathrm{.}3\}$

$($Cost of sales $(500\mathrm{.}2(481\mathrm{.}9$

Grossprofit $109\mathrm{.}996\mathrm{.}4$

Selling, general, and

administrative

expenses $(40\mathrm{.}5(39\mathrm{.}0$

$[$Research and development $(24\mathrm{.}6(22\mathrm{.}8$

$[$Depreciation and amortization $(3\mathrm{.}6(33$

$($Operating income $41\mathrm{.}2)31\mathrm{.}3)$

$($Other income $--44$

$[$Earnings before interest and taxes $($EBIT$)41\mathrm{.}2)31\mathrm{.}3$

Interest income $($expense$)(25\mathrm{.}1(15\mathrm{.}8$

Pretax income $16\mathrm{.}115\mathrm{.}5$

$($Taxes G$53$

Net income $10\mathrm{.}610\mathrm{.}2)$

ZAMBEEFLtd

Consolidated Balance Sheet

December $31,2016$ and $2015($in K millions$)$

Liabilities and Stockholders'

$|$