Jotta & Co ltd (Jotta) began trading as a family run business 30 years ago and operates a chain of do it yourself (DIY) stores. Jottas management has not changed since it began, and its stores maintain a traditional DIY store layout. Customers can purchase DIY items such as decorating, plumbing and electrical equipment. Jotta sells its DIY items to both wholesale and retail customers and has a higher proportion of wholesale sales than the rest of the sector.

Extracts from the financial statements of Jotta for the year ended 31 May 2021 are shown below:

Statement of profit or loss extract
Revenue	28,101,500
Cost of sales	- 19,273,795
Gross profit	8,827,705
Operating expenses	-7,550,062
Profit from operations	1,277,643

Statement of financial position extract
Total equity	9,713,698
Non-current liabilities
Bank loan

3. Write a report to the Board of Jotta & Co that analyses the performance and position of Jotta compared to the sector taking into account information in the scenario and address the suitability of comparing Jotta to sector averages. (40 marks)