In your role of planning assistant you are to prepare an analysis of the company's figures over the two-year period using the performance criteria listed in the inter-firm table.

a. Prepare a horizontal analysis of the Statement of Profit or Loss and Other Comprehensive Income Statement for 2020 using 2019 as the base year.

b. Explain whether the trends are favorable or unfavorable as computed in (a) above.

Haziq Iskandar is the director of Robust Sdn Bhd. The company has traded for 30 years and has in the past achieved very good levels of growth and return on capital, but this is now changing. In recent time it has failed to introduce new product lines, relying on traditional products and little has been invested in Research or Product Development. You are a business planning consultant for a firm of Management Consultants, Robust Sdn Bhd is one of your clients. In recent times the business has experienced increased turnover but a downturn in overall performance. Haziq Iskandar had a meeting with your Director and he has stated that he wants to introduce tighter management control within the company by introducing a system of responsibility accounting. You receive the following memo from your Director, Robert Teoh, regarding this case. Memorandum To: Business Planning Assistant Date: 22nd January 2021 From: Robert Teoh, Director Subject: Robust Sdn Bhd. - accounts information You are aware that I met with Haziq Iskandar yesterday and that he is concerned with the latest results shown in the final accounts that have recently been prepared at year end. The file attached contains a summary of the company's Statement of Comprehensive Income and Statement of Financial Position for the past two years; together with additional information for their business sector as a whole for the period under review. I would like you to examine this information and meet with me on Friday morning to discuss the form and presentation of a detailed financial analysis of the company over the two-year period. Signed: Robert Teoh Financial information on Robust Sdn Bhd: Statement of Profit or Loss and Other Comprehensive Income Statement for the Year- ended 31 December 2020 2019 RM'000 RM'000 Sales Revenue 5,800 3,990 Cost of Goods Sold (4,123) (2,863) Gross Profit 1,677 1,127 Distribution Cost (193) (177) Administration Cost (218) (126) Profit before Interest & Tax 1,266 824 Interest (188) (194) Taxation (108) (120) Profit for the year 970 510 Robust Sdn Bhd Statement of Financial Position as at 31 December 2020 2020 2019 2019 RM'000 RM'000 RM'000 RM000 Non-Current Assets 3,610 3,225 Current Assets Inventories 580 460 Account Receivables 460 280 Cash & Cash equivalents 200 160 Total Current Assets 1,240 900 TOTAL ASSET 4,850 4,125 Equity&Liabilities Equity Share Capital (RMI) 1,000 1,000 Retained earnings 1,525 555 Total Equity 2,525 1,555 Non-Current Liabilities Long Term Debt 1,700 2,000 Total Non-Current Liabilities 1,700 2,000 Current Liabilities Account Payables 400 320 Bank Overdraft 70 30 Taxation 108 120 Accruals 47 100 Total Current Liabilities 625 570 TOTAL EQUITY & LIABILITIES 4.850 4,125 Additional information: i The Opening Inventory for 2019 was RM500,000 and Opening Account Receivable for 2019 was RM300,000. The number of shares in issue is 1,000,000 for both years. iii. Market price per share for 31/12/2020 RM12.00 and 31/12/2019 RM6.20