Part A Deniz Ltd makes a single product and produces management accounts, including a costing statement of profit or loss each month. In both May and June, 320,000 units of the product were produced. The production costs in both May and June were: Type of Costs Amount Direct materials: 992,000 Direct labour: 1,376,000 Fixed overheads: 650,000 Total production costs: 3,018,000 There were no opening inventories at the start of May and all of the production for May was sold. However, in June, only 305,000 units of production were sold, leaving 15,000 units in inventory. Each unit is sold for 14.75. Complete a simple statement of profit or loss, under absorption and marginal costing principles for the months of May and June. This provides evidence for [P3] Part B Scenario: Income Statement ($ millions) Sales revenue Cost of goods sold Gross Profit Operating expense Depreciation expense Operating Profit Interest expense Profit before tax Tax expense Profit for the year 2018 62.5 40.1 22.4 5.6 3.3 13.5 3.5 10.1 4.7 5.4 2019 78.7 52.6 26.1 7.1 4.3 14.7 4.6 10.1 5.0 5.1 2020 95.0 63.2 318 8.2 6.1 17.5 6.7 10.8 5.1 5.7 Allocation of net income: Dividends Addition to retained earnings 2018 2.1 3.3 2019 2.4 2.6 2020 2.9 2.8 31-Dec-18 31-Dec-19 31-Dec-20 5.3 14.3 22.4 42.0 6.1 17.3 24.6 48.0 7.9 22.9 31.0 61.8 214.6 256.6 263.9 311.9 331.1 392.8 Balance Sheet($ millions) ASSETS Current assets Cash and marketable securities Accounts receivable Inventory Total current assets Non Current Assets Net PPE Total assets LIABILITIES AND EQUITY Current liabilities Accounts payable Short-term debt Total current liabilities Long-term debt Total liabilities Shareholders' equity Common Stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 56.2 40,4 48.5 28.8 77.3 27.4 104.7 96.6 40.6 137.3 63.3 53.3 116.5 58.8 175.3 87.1 64.8 151.9 256.6 107.2 67.4 174.6 311.9 147.4 70.2 217.6 392.8 You have been hired as an external financial consultant by the selected online retailer. They have asked you to analyse their financial performance independently. Perform a thorough financial analysis based on the organisations' latest financial statements. Write a business memo to the management of the organisation to communicate the results of your financial analysis and recommendations