FINANCE MODULE

Statement of financial position

		20X2		20X1
	000	000	000	000
Non current assets
Land and buildings
Cost	1600		1650
Depreciation	(200)		(150)
		1400		1300
Plant and machinery
Cost	600			400
Depreciation	(120)			(100
		480		300
Current assets
Inventory	300		100
Receivables	400		100
		700		200
Total assets		2580		1800
Capital and reserves
Share capital $1 ordinary shares		1200		1200
Retained earnings		310		220
Current liabilities
Bank overdraft	590		210
Payables and accruals	370		70
Taxation liability	110		100
Total current liabilities		1070		380
Total equities and liabilities		2580		1800

Statement of comprehensive income

	20X2	20X1
	000	000
Sales revenue	1500	1000
Cost of sales	(700)	(300)
Gross profit	800	700
Administration and distribution expense	(400)	(360)
Net profit before tax	400	340
Income tax expense	(200)	(170)
Net profit after tax	200	170
Dividends	(110)	(100)
Retained profits for the year	90	70
Retained profit brought forward	220	150
Retained profit carried forward	310	220

Required

Make use of horizontal analysis and vertical analysis and comment on any changes in terms of the companys performance.