Integrated Holding Company's year-end financial statements are given below: Balance Sheet Integrated Holding Company (KWD 1,000) 2018 2017 2016 2015 2014 4,769 13,479 1,034 167 685 1,630 21,764 3.846 15,233 864 236 351 563 21,093 1,422 13,519 762 784 1,441 10,888 871 314 1,010 10,499 806 183 863 17,350 525 14,039 326 12,824 125,171 49,317 103,893 -41,060 92,475 -32,837 137,707 -64,319 711 95,863 128,281 -57,754 711 92,331 93,204 76,872 72,462 Assets: Cash and Cash Equivalents Accounts Receivable - Net Inventories Prepaid Expenses and Other Current Assets Advances to Suppliers Other Receivables Current Assets Long Term Investments Property. Plant & Equipment - at cost Nonamortizable Intangibles Total Assets Liabilities and Equities: Accounts Payable - Trade Accrued and Provision Expenses Short Term Debt (Incl. Current Mat of LT Debt) Other Payables Current Liabilities Long Term Debt Long Term Accounts Payable - Trade Long-Term Employee Benefit Total Liabilities Minority Interest Common Stock + Paid in Capital Retained Earnings Deficit> Accum. Other Comprehensive Income Other Equity Adjustments Common Shareholders' Equity Total Liabilities and Equities 14,433 3,995 2,892 345 21,665 3,241 8,268 1,125 15,003 493 24,889 6,074 8,179 2,807 5,906 160 17,052 12,020 2.896 1,196 33,164 0 22,000 28,835 1,463 6,869 1,095 1,259 13,105 808 16,267 16,679 7,804 1,003 41,753 18 20,900 22,229 1,463 6,841 4,844 1,110 17,142 640 23,736 3,578 4,301 667 32,282 17 17,500 15,501 1,463 5,696 1,447 26,353 0 22.000 37,411 1,463 8,641 773 31,736 17 19,000 18,134 1,463 6,524 69,515 95,868 59,167 92,331 51,433 93.204 45,121 76,874 40,160 72,459 QUESTION 2) (20 pts) Using the data provided in the financial statements a) Prepare common size income statement for Integrated Holding Company (10 pts) 2018 2017 Common-sized income statement and profitability ratios (For help see Table 5.5 in your textbook) Revenues Cost of Goods Sold Gross Profit Selling, General and Administrative Expenses Other recurring income Gain on disposal of property and equipment Foreign Exchange Gain (Loss) Net Impairment Loss on Financial Assets Operating Profit Interest Expense Gain on sale of subsidiary Income before Tax Income Tax Expense Remuneration of board of directors Net Income a) Comment briefly (10 pts, 200 words) QUESTION 3 ) (36 pts) Using the data provided in the financial statements calculate the below ratios and comment briefly. 2018 2017 Comment Current Ratio Quick Ratio Trade Receivable Turnover Days Receivable Inventory Turnover Days Inventory Accounts Payable Turnover Days Accounts Payable Cash Conversion Cycle PPE Turnover Debt to Equity Liabilities to Equity P Income-Statement Integrated Holding Company-(KWD-1,000) 20180 2017 2016 2015 2014- Revenues 41,9610 39,8070 30,6360 25,6730 22.735 Cost-of-Goods Solda -21,878 -19,4250 -17,8630 -16,633 -13,897 Gross-Profita 20,0830 20,3820 12,7730 9,040 8,838 Selling. General and Administrative-Expensesa -3,8870 -3,8830 -3,7920 -2.7520 -2.99200 Other-recurring incomes 2300 2060 4910 4100 269/ Gain-on-disposal-of-property-and-equipment 1,3980 4340 Foreign Exchange-Gain-(Loss) 8190 -1,8474 9180 1,3150 1,109 Net-Impairment-Loss-on-Financial-Assetsa -5860 -900d -Operating-Profite 18,0580 14,393 10,3900 8,013 7.224 Interest Expenses -3470 -7670 -9640 -8104 -625 Gain-on-sale-of-subsidiarya 1230 --Income-Before Taxe 17,8340 13,6260 9,4260 7,2030 6,599 Income Tax Expensen -5380 -2690 -1850 .1380 -130 Remuneration-ofboard-of-directors -600 450 450 450 450 Net Incomea 17,2360 13,3120 9,1960 7,0200 6,4246 EPSE 0.0780 0.0610 0.042 0.032 0.0296 QUESTION 1) (10 pts) Using the data provided in the financial statements, 2018 2017 2016 2015 2014 a) Calculate the ratios in the table (5 pts) Traditional decomposition of ROE (For help see Table 5.2 in your textbook) Net profit margin (ROS) * Asset turnover = Return on assets (ROA) * Financial leverage = Return on equity (ROE) b) Comment on the table briefly (5 pts, 100 words)