Question 4 Saitama ple is a food wholesale company. Its financial statements for the years ended 31 December 2018 and 2019 are as follows: Statements of income 2019 2018 5000 S000 Sales revenue 12,000 15,000 Gross profit 3,000 3,900 Distribution costs 500 600 Administrative expenses 1,500 1,000 Operating profit 1,000 2,300 Interest receivable 80 100 Interest payable -400 -350 Profit before taxation 680 2,050 Income taxation 240 720 Profit after taxation 440 1,330 Dividends 800 600 (Loss)/profit retained -360 730 Statements of financial position 2019 2018 S000 5000 Non-current assets: Intangible assets 200 Tangible assets 4,000 7.000 Investments 600 800 4.800 7.800 Current assets: Inventory 250 300 Trade receivables 1,750 2,500 Cash & bank 1,500 200 3,500 3,000 Total assets 8,300 10,800 Equity and reserves: Ordinary shares of 10p each Share premium account Revaluation reserve Retained earnings 1,000 1,000 1.110 3,190 6,300 1,000 1,000 8,300 1,000 1,000 1,750 3,550 7.300 2.000 1,500 10.800 Debentures Current liabilities Total equity and liabilities Required: 1. Describe the concerns of the following users and how reading an annual report might help satisfy these concerns: a. Staff - 4 marks b. Financial Institutions - 4 marks c. Owners - 4 marks. 2. Calculate relevant ratios for Saitama and suggest how each of the above user groups might react to these - 28 marks