Fibertech GmbH is a distributor of outdoors technical clothing. The company outsources the production of clothing to external manufacturers in Bangladesh and sells the clothing under its own brands. Below you are provided with the balance sheet at the end of x3 and x4, and the profit & loss and cash T- accounts for x4. Note that some numbers are missing in the T-accounts. You'll have to infer them in the questions below. Fibertech GmbH Balance sheets at 31 December x3 and x4 (amounts in 000) Dec 31, x3 Dec 31, x4 Non-current assets Brands 50 90 Land 200 200 Building and equipment, gross 540 580 less: Accumulated depreciation (484) (474) Building and equipment, net 56 106 Total non-current assets 306 396 Current assets Inventories 250 350 Accounts receivable 400 500 Prepaid insurance 4 6 Cash 340 239 Total current assets 994 1.095 Total assets 1.300 1.491 Shareholders' equity Share capital 170 170 Retained profits 120 426 Total shareholders' equity 290 596 Non-current liabilities Long-term bank loan 600 450 Current liabilities Short-term portion of long-term bank loan 150 150 Current liabilities Short-term portion of long-term bank loan Accounts payable 150 Taxes payable Interest payable Total current liabilities Total liabilities and shareholders' equity 200 150 250 35 25 25 20 410 445 1.300 1.491 Page 1 Profit and loss year x4 Cost of goods sold Depreciation expense Selling and administration salaries Debit Credit BB - 1.400 2.200 Total sales 40 15 Gain on sale of buildings and equipm 240 ? Insurance expense Interest expense ? Profit and loss year x4 Cost of goods sold Depreciation expense Selling and administration salaries Debit Credit BB 1.400 2.200 Total sales 40 15 Gain on sale of buildings and equipment 240 Insurance expense ? Interest expense ? Income taxes ? BB 336 Net Income Cash Debit Credit 340 45 ? Payments to suppliers 120 Purchase of equipment Receipts from customers 2.100 Proceeds from sale of buildings and equipment EB 239 240 Payments of salaries 36 Prepayments of insurance 60 Payments of interest on loans 150 Loan repayment 120 Payments of taxes ?Payments of dividends 40 Purchase of brand Additional note: Fibertech estimates its brands have an indefinite life and consequently they are not amortized. Project Title Give your project a descriptive title Briefly discuss Fibertech's financial statements. (Please comment on its financial position, profitability, liquidity and whatever relevant information you can interpret from the financial statements.) Your answer needs to be a little bit longer. Write a few sentences to complete your assignment if you were a shareholder in Fibertech sitting in the Board of Directors, based on the information you read in the financial statements, what further relevant questions would you ask to get a more complete picture of the business performance? 10:33 PM