Question 3 Singa Marketing imports solar panels from Germany and China and sells them in Singapore. The following are comparative financial statements of Singa Marketing Pte Ltd: Singa Marketing Pte Ltd Comparative Income Statements For the year ended 31 December, 2018 2017 2016 Sales $198,800 $166,000 $143,800 Cost of goods sold 108,890 $86,175 66,200 Gross profit 89,910 79,825 77,600 Selling expenses 22,680 $19,790 18,000 Administrative expenses 16,760 $14,610 15,700 Total expenses 39,440 34,400 33,700 Profit before tax 50,470 45,425 43,900 Income tax expenses 6,050 5,910 5,300 Net profit $44,420 $39,515 $38,600 Singa Marketing Pte Ltd Comparative Statements of Financial Position As at 31 December, 2018 2017 2016 Property, plant and equipment, net $67,860 $32,660 $36,300 Long-term investments 1,700 10,600 Current assets 99,810 101,560 79,000 Total assets $167,670 $135,920 $125,900 Liabilities and Equity Current liabilities $26,370 $19,180 $16,500 Long-term notes payable 12,050 Share capital 37,000 37,000 37,000 Share premium 11,300 11,300 11,300 Retained earnings 80,950 68,490 61,100 Total liabilities and equity $167,670 $135,970 $125,900 Required: (a) Compute each year's current ratio and debt to equity ratio using the formula set out in Appendix: Financial Ratio Formula Sheet. (3 marks)(b) Express the statement of financial position data in trend percent with 2016 as the base year. (5 marks) (c) Express the income statement data for the three years as common-size percent. (5 marks) (d) Use the ratios and statements from (a), (b) and (c) to analyse the financial statements and comment on any significant findings. (1 1 marks)