Lanner Ltd is a South African company specialising in the importation and distribution of a broad range of kitchen electronic consumable products. Lanner Ltd sources branded products, mainly on an exclusive basis, directly from leading international manufacturers and to a lesser extent from local manufacturers. Suppliers provide Lanner Ltd with 30-days payment terms. The company is invoiced by its suppliers mainly in USS. The company has a network of specialised branches and independent distributors throughout South Africa to ensure product availability to its customers. Eighty percent of the company sales are made on credit. Lanner is delighted with the results it has achieved this year, especially as the results follow the excellent results produced in 2022 and tough conditions endured during the 2021 because of Covid-19. The excellent results have been achieved on the back of extremely challenging environment. The trial balances of Lanner Ltd for the financial years ended 30 April 2023, 2022, and 2021 are presented below. The 30 April 2023 trial balance is still in draft and needs to be updated with the transactions that should still be recorded (see below). The 2022 and 2021 trial balances have been audited. Trial Balance (amounts are in R'000) Depreciation and amortisation expense Interest expense Taxation expense Dividend paid Non-current assets Inventories Accounts receivables Other short-term investments Cash and cash equivalents Cost of sales Operating expense Revenue Equity-opening balance in each year Long-term loans Current liabilities (mainly, accounts payables) 2023 9870 5545 1497 4 000 189 982 3400 6 557 1.359 2 598 19 104 10 039 253 951 50 194 75 785 106 573 21.399 253 951 2022 8 874 4 255 1634 2 000 165 380 2591 6090 2755 1 189 18 819 8 199 221 786 45 900 73 666 83 482 18738 221 786 2021 7104 3439 597 1.000 146 243 2 257 6 128 1566 10 876 17 078 8200 204 488 37 952 73 132 72 660 20 744 204 488 Lanner Ltd pays tax at the rate of 28%. The following transactions still needs to be recorded in the accounting records of Lanner Ltd for the 30 April 2023 financial year. On 1 January 2023, Lanner Ltd purchased a delivery vehicle costing R600 000 for cash. The vehicle has an estimated 6-year life and a R50 000 residual value. Lanner Ltd uses the units-of-production depreciation method and estimates that the vehicle will be driven 100 000 miles. The vehicle was driven 6 000 miles during the four months ended 30 April 2023. On 1 February 2023, Lanner Ltd invested cash of R425 000 into a fixed deposit for five years. The fixed deposit earns interest of 9% per annum compounded monthly. Interest is payable annually. On 1 July 2022, Lanner Ltd issued a four-year, R10 million bond with a coupon of 7% per annum to finance its working capital. The interest is payable semi-annually on 31 December and 30 June. The issue price of the bond was R9.6 million. Lanner Ltd received an electricity bill of R123 000 from Eskom that still needs to be recorded and still to be paid. Lanner Ltd plans to pay the bill on 15 May 2023. Amounts should be rounded off to the nearest thousands (R'000). REQUIRED: (a) Prepare the final trial balance of Lanner Ltd for the 30th April 2023. (b) Prepare the income statement, statement of changes in equity, balance sheet and cash flow statement of Lanner Ltd for the financial year ended 30 April 2023. Show comparative information (ie, financial years 2022 and 2021 next to 2023). (c) Use trend analysis, common size statements and financial ratios to evaluate the profitability, liquidity, solvency and working capital management of Lanner Ltd. (d) What areas of improvement would you suggest for Lanner Ltd. TOTAL Marks 10 10 25 5 50