ONE Harry is a public listed manufacturing company. Its summarised financial statements for the year ended 30 September 2017 (and 2016 comparatives) are: Statements of profit or loss for the year ended 30 September: 2017 2016 K000 K000 Revenue Cost of sales Gross profit Distribution costs 29,500 36,000 (25,500) (26,000) 4,000 10,000 (1,050) (800) Administrative expenses (4,900) (3,900) Investment income 50 200 Finance costs (600) (500) Profit (loss) before taxation (2,500) 5,000 Income tax (expense) relief 400 (1,500) Profit (loss) for the year (2,100) 3,500 Statements of financial position as at 30 September: Assets Non-current assets Property, plant and equipment 24,500 Investments at fair value 4,000 Current assets Inventory Trade receivables Tax asset Bank 100 4,800 Total assets 33,300 2017 2016 K000 K000 K000 K000 17,600 2,400 20,000 28,500 2,200 1,900 2,200 2,800 600 nil 1,200 6,200 26,200 The following information has been obtained from the Chairman's Statement and the notes to the financial statements: 'Market conditions during the year ended 30 September 2017 proved very challenging due largely to difficulties in the global economy as a result of a sharp recession which has led to steep falls in share prices and property values. Harry has not been immune from these effects and our properties have suffered impairment losses of K6 million in the year. The excess of these losses over previous surpluses has led to a charge to cost of sales of K1.5 million in addition to the normal depreciation charge. "Our portfolio of investments at fair value through profit or loss has been 'marked to market' (fair valued) resulting in a loss of K1.6 million (included in administrative expenses).' There were no additions to or disposals of non-current assets during the year. 'In response to the downturn the company has unfortunately had to make a number of employees redundant incurring severance costs of K1.3 million (included in cost of sales) and undertaken cost savings in advertising and other administrative expenses.' 'The difficulty in the credit markets has meant that the finance cost of our variable rate bank loan has increased from 4.5% to 8%. In order to help cash flows, the company made a rights issue during the year and reduced the dividend per share by 50%.' 'Despite the above events and associated costs, the Board believes the company's underlying performance has been quite resilient in these difficult times.' Required: Analyse and discuss the financial performance and position of Harry as portrayed by the above financial statements and the additional information provided. Your analysis should be supported by any TEN ratios (two from each of the five ratio classifications). 40 marks