Question 1 You recently joined a Multi-National Enterprise as a management trainee. Although your role is not specifically in finance, you are required to be familiar with the financial affairs of the firm. As such, your boss has asked you to assist on several matters in preparation for a meeting with senior management next week. The 3-year summary financial statements have been furnished to you. Income Statement 7,882 7.962 8,010 Revenue Cost of goods sold 5,036 5.133 5,073 Gross profit 2,846 2.829 2.937 2,389 2,216 2,050 Operating expenses Net operating profit 458 613 888 Interest expense 46 Income before tax 412 568 864 Income tax 270 253 346 Net income 143 315 518 Statement of Financial Position FY 2014 FY 2013 FY2012 $'000 $'000 $'000 Curent assets: Cash and bank 951 1,300 1.494 Inventory 788 898 848 Trade receivables 305 317 278 2,044 2,515 2.620 Non-current assets. Property, plant and equipment 876 1,599 1,623 Other non-current assets 243 168 159 2,119 1,758 1,791 4.272 4,411 Total assets 4.163 Current liabilities Trade payables 503 386 296 Accruals 630 580 631 Other current liabilities 43 217 1,136 970 Non-current liabilities Borrowings 541 455 471 Other non-current liabilities 257 94 566 549 728 Equity Share capital 1,419 1,343 1,228 Reserves 96 1,244 1,485 2,380 2,587 2,713 Total liabilities and equity Some financial ratios have been calculated by your colleague. You are required to take over from where she left off and then move on to analyse the firm's performance