please help me to answer question 3(2) and (4) , read the mf doc and then answer it.

QUESTION 3: FINANCIAL STATEMENT ANALYSIS MARKS) (30 Auckland International Airport Ltd Using the annual report of Auckland International Airport, for 2016 & 2015, answer the following questions. (Company annual reports can be obtained from the library website: Go to http://companyresearch.nzx.com.ezproxy.aut.ac.nz/deep_arewpage.php? pageid=arep&default=AIA) Required: 1. Using the Consolidated financial statements of Auckland International Airport Ltd for the years 2016 and 2015, prepare common-size balance sheets and income statements. Common size balance sheets 2016 2015 2016 2015 Non-current assets Property, plant and equipment Investment properties Investment in associates Derivative financial instruments Current assets Cash and cash equivalents Inventories Trade and other receivables Dividends receivable Taxation receivable Derivative financial instruments Total assets Shareholders' equity Issued and paid-up capital Reserves Retained earnings 4708. 1 1048. 9 142.8 138.8 6038. 6 3884. 1 848.1 163.6 118.3 5014. 1 76.7 % 17.1 % 2.3% 2.3% 98.3 % 76.1 % 16.6 % 3.2% 2.3% 98.3 % 52.6 0.1 42.3 3.3 3.9 0.7 102.9 6141. 5 38.5 0 36.6 2.8 9.5 0 87.4 5101. 5 0.9% 0.0% 0.7% 0.1% 0.1% 0.0% 1.7% 100.0 % 0.8% 0.0% 0.7% 0.1% 0.2% 0.0% 1.7% 100.0 % 332.7 3075. 6 472.4 3880. 7 332.3 2317. 3 393.3 3042. 9 5.4% 50.1 % 7.7% 63.2 % 6.5% 45.4 % 7.7% 59.6 % 1490 1504. 9 24.3 % 29.5 % Non-current liabilities Term borrowings Derivative financial instruments Deferred tax liability Other term liabilities Current liabilities Accounts payable and accruals Derivative financial instruments Short-term borrowings Provisions Total equity and liabilities 56.9 220.4 1.3 1768. 6 22.2 220.3 1.3 1748. 7 0.9% 3.6% 0.0% 28.8 % 0.4% 4.3% 0.0% 34.3 % 94.3 88.8 1.5% 1.7% 0.1 1.7 0.0% 0.0% 396.9 217.6 6.5% 4.3% 0.9 1.8 0.0% 0.0% 492.2 309.9 8.0% 6.1% 6141. 5101. 100.0 100.0 5 5 % % Common size income statements 2016 2015 2016 2015 Income 508.5 18.0 % 27.0 % 27.4 % 13.0 % 0.9% 9.1% 0.3% 4.2% 100.0 % 18.3 % 27.7 % 26.0 % 12.7 % 1.0% 9.2% 0.6% 4.5% 100.0 % 46.8 46.3 8.2% 9.1% 49.1 11.5 16.3 9.7 10.2 44.2 10.7 13.2 7.3 6.8 143.6 128.5 8.6% 2.0% 2.8% 1.7% 1.8% 25.0 % 8.7% 2.1% 2.6% 1.4% 1.3% 25.3 % 430.3 -8.4 -2.6 380 12.5 -0.7 75.0 % -1.5% -0.5% 74.7 % 2.5% -0.1% -16.5 -11.9 -2.9% -2.3% Airfield income 103.4 93.3 Passenger services charge 154.9 140.9 Retail income 157.5 132 74.7 5.4 52.1 1.7 24.2 64.6 5.1 46.6 3.3 22.7 Total income Expenses Staf Asset management, maintenance and airport operations Rates and insurance Marketing and promotions Professional services and levies Other expenses 573.9 Total expenses Earnings before interest expense, taxation, depreciation, fair value adjustments and investments in associates (EBITDAFI) Share of (loss)/profit of associates Derivative fair value decrease Property, plant and equipment fair value revaluation Rental income Rates recoveries Car park income Interest income Other income Investment property fair value increase Earnings before interest, taxation and depreciation (EBITDA) Depreciation Earnings before interest and taxation (EBIT) Interest expense and other finance costs Profit before taxation Taxation expense Profit after taxation attributable to owners of the parent 87.1 57.2 489.9 437.1 73 64.8 416.9 372.3 79.1 86 337.8 286.3 75.4 62.8 262.4 223.5 15.2 % 85.4 % 12.7 % 72.6 % 13.8 % 58.9 % 13.1 % 45.7 % 11.2 % 86.0 % 12.7 % 73.2 % 16.9 % 56.3 % 12.4 % 44.0 % (4 marks) 2. Evaluate the sales, gross margin, operating expenses, operating profit, net profit margin, asset, debt, and equity structure, of Auckland International Airport Ltd and explain trends and changes over the years 2015 and 2016. (10 marks) 3. Using relevant ratios, and other associated information available in the public domain, assess the financial health of Auckland International Airport Ltd from an investor's view. Current ration Quick ration Inventory turnover Debtors turnover Creditors turnover Cash cycle Return on assets Asset turnover Debt ration Return on equity Formula Current assets/current liability Quick assets/current liability Inventories/ cost of goods sold*365 Accounts receivable/ sales*365 Accounts payable/ cost of goods sold*365 Inventory turnover + debtors turnover - creditors turnover Net profit/total assets Sales/ assets Debt/assets Net profit/total equity 2016 0.21 2015 0.28 0.21 0.28 N/A N/A 26.90 26.27 N/A N/A N/A N/A 6.79% 9.34% 0.37 6.76% 7.30% 9.97% 0.40 7.34% (6 marks) 4. Assume you are a banker evaluating a loan request from Auckland International Airport Ltd for $ 75 million. What would be your concerns when making a decision regarding approval or denial of the loan request? Explain why. (10 marks)