Michael Hill International Ltd Using the annual report of Michael Hill International Ltd for the financial year ending 2017, answer the following questions. (Company annual reports can be obtained from the library website: visit https://companyresearch-nzxcom.ezproxy.aut.ac.nz/reports/nz/2017/MHJ2017.pdf

Required:

1. Using the financial statements Michael Hill International Ltd for the years 2016 and 2017, prepare common-size balance sheets and income statements.

2. Evaluate the sales, operating expenses, gross margin, net-profit margin asset, debt and equity structure, of Michael Hill International Ltd and explain trends and changes found using the common-size financial statements.

3. Using relevant ratios, and other associated information available in the public domain, assess the financial health of Michael Hill International Ltd based from the point of view of an investor in share capital.

4. Assume you are a banker evaluating a loan request from Michael Hill International Ltd for $ 50 million. What would be your concerns when making a decision regarding approval or denial of the loan request? Justify