MAC2602 OCTOBER/NOVEMBER 2016 ESTION 4 (17 marks) (20 minutes) The directors of Oregon-Wood Limited are concerned about the increase in distnbution costs which lead to an increase in overall expenses and a decroase n net prohts They supplied you with their latest financial results and have asked you to analyse some of their financial information You are gven the following extract from the comparatve statement of proft or loss and comprehensive income of Oregon-Wood Limted for the past four years 2018 2015 2014 2013 Revenue Distribution cost Net profit/(loss) You are given the following extract of Oregon-Wood Limted from the statement of financial position as at 31 August 2016 2016 R000 35 559 16 500 Inventones Trade and other receivables Cash and cash equrvalents Trade and other payables Current habilibes Interest-bearing borrowings 12 556 (8 15 950 (120 800 Additional information: 1 Oregon-Wood Limited has 4 mllion shares in issue Their current market pnce is R30 per share In 2015 the price per share was R21,75 2 They paid dividends of R520 000 to shareholders in the current financial year (2016) 3 Oregon-Wood Limited expanded their business to other parts of the country 4 In 2016 they had to buy larger trucks to distnbute the wood to their new business locations 5 The proportion of credit sales is 50% of the relevant year's revenue REQUIRED: a) Redraft the extract of the comparative statement of profit or loss and other comprehensive income of Oregon-Wood Limited for the four years by using the indexed basis Round your answer to one deaimal place ] b) Provide context to (comment and interpret) the financial analyss done in (a) above with reference to management's concerns Calculate the following ratios only for 2016 by using the rato analysis technique (Clearly indicate the specific ratio calculated in each case and explain what the ratio means by also referning to the previous years ratio ) c) () Cash raio (2015 0,78 tmes) (a) Drndend yield (2015 0.23%)