QUESTION 3 You are the management accountant of MSC Company Ltd. MBA Limited is a major competitor in the same industry and it has been operating for 20 years. Summary of MBA Limited's statements of profit or loss and financial position for the previous three years are given below. SUMMARISED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DEC. 2016 2017 2018 GHSm GHSm GHSm Revenue 840 981 913 Cost of sales 554 645 590 Gross profit 286 336 323 Selling, distribution and admin. expenses 186 214 219 Profit before interest 100 122 104 Interest 6 15 19 Profit before taxation 94 107 85 Taxation 45 52 45 Profit after taxation 49 55 40 Dividends 24 24. 24 SUMMARISED STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2016 2007 2008 GHSm GHSm GHSm ASSETS Non-current assets: Intangible assets 36 40 48 3 Tangible assets at net book value 176 212 206 246 216 264 Current assets: Inventories Receivables Bank 237 105 52 606 2016 303 141 58 748 2017 294 160 52 770 2018 EQUITY AND LIABILITIES Equity: Stated capital Income surplus 100 299 399 100 330 430 100 346 446 74 38 138 Non-current liabilities: Long Term Loans Current Liabilities: Trade Payables Other Payables 53 80 606 75 105 748 75 111 770 Required: Write a report to the finance director of MSC Company Limited analyzing the performance of MBA Company Limited and showing any calculations in an appendix to this report. 12 marks