FOUR The summarised financial statements of Medika Company, a major high street retailer, are reproduced below: Statement of Comprehensive Income 2020 MVRm 2019 MVRm Revenue Cost of goods sold Gross profit Selling and marketing costs Administrative expenses Other operating income 2,737.0 (2,045.8) 2,630.7 L1,934.7) 691.2 696.0 (571.6) (534.1) (125.1) (112.9) 23.5 21.9 Operating profit Finance cost Finance income Profit before taxation Taxation 18.0 70.9 (14.5) (13.7) 3.8 4.3 7.3 61.5 0.2 (20.2) Profit for the year 7.5 41.3 Statement of Financial Position as at 31 December 2020 2019 Assets Non-current assets Intangible assets Property, plant and equipment 110.1 95,7 312.9 297.2 423.0 392.9 Current assets Inventories 377.1 344.2 Trade and other receivables 303.5 212.6 Cash and cash equivalents 28.4 246.7 709.0 803.5 Current liabilities Borrowings (129.8) (98.6) Trade and other payables (517.9) (546.7) Current tax liabilities (9.9) 25.0) (657.6) (670.3) Net current assets 51.4 133.2 Non-current liabilities Financial liabilities Borrowings (191.4) (223.5) Net assets 283.0 302.6 Shareholders' equity Ordinary shares 182.4 182.1. Share premium 31.7 33.5 Retained earnings 68.9 87.0 Total equity 283.0 302.6 TING AND FINANCE FOR EXECUTIVES [Compatibility Modej word want to do MVRm Cash Flow Statement 2020 2019 Cash flows from operating activities Cash (utilised by)/generated from operations (39.6) 129.5 Interest paid (12.6)- (10.5) Interest received 2.5 4.5 Tax paid (13.4) (16.6) Net cash (utilised by)/generated from operating activities activities 106.9 Cash flows from investing activities Acquisition of subsidiaries (net of cash acquired) (63.0) Purchase of intangible assets (7.3) (10.6) Purchase of property, plant and equipment (71.9) (46.0) Net cash used in investing activities (142.2) (56.6) Cash flows from financing activities Net proceeds from issue of ordinary shares 0.7 5.5 Proceeds from bank borrowings 11.9 Dividends paid to Company's shareholders Net cash used in financing activities (25.6) (24.3) (13.0) (18.8) Net (decrease)/increase in cash and cash (218.3) 31.5 Cash and cash equivalents at beginning of the year 246.7 215.2 Cash and cash equivalents at end of the year 28.4 246.7 JSTA Required: Comment on the performance (profitability and ROI) of Medika in 2020, and its liquidity position at 31 December 2020. [TOTAL: 25 MARKS]