Please explain the key factors to define whether an entity is a reporting entity under SAC1 'Definition of the Reporting Entity'. In the following cases, are the entities reporting entities? Give reasons for your answers. a) ME Pty Ltd is a proprietary company. It has two shareholders, each of whom is involved in the day-to- day management of the company. ME has few other employees, no debt and assets of $850 000. It also has about 25 trade creditors, none of whom is owed more than $10 000. In buying goods and services, the company has a pool of about 120 suppliers from whom it can purchase. b) Lion Ltd is a public company with five shareholders, each of whom is a director involved in the day-to- day operations of the company. The company has a debt-to-equity ratio of 5 to 1. All debt is owed to a syndicate of bankers under a four-year revolving credit agreement. The company has one main supplier and employs seven people who have been employees for many years. Its major asset is an office building. c) JWS Pty Ltd is a proprietary company. It has approximately 90 employees and three shareholders /directors managing the company. It has a bank overdraft facility of $90 000.