Question 4 You are the Accountant of Zay Ltd. Kay Ltd is a competitor in the same industry, and it has been operating for the past 10 years. A Summary of the financial statements of Kay Ltd's statements of profit or loss and financial position for the previous two years are given below: Summarised Statement of Profit or Loss For the year ended 31 December Revenue 2018 2019 GHe'million 2.520 GHe'million 2,943 (1.662) (1,935) Cost of sales 858 1,008 Gross profit (558) (642) Administration and selling expenses 300 366 Profit before interest and taxes (18) (45) Finance cost 282 321 Profit before taxation (135) (156) Taxation 147 165 Profit after taxation 72 72 Dividends Summarised Statement of Financial Position as at 31 December Assets Non-current assets Intangible assets Tangible assets at net book value Current assets Inventories Receivables Bank Total Assets 2018 2019 GHe'million GHe'million 108 120 528 618 636 738 711 909 315 423 156 174 1,182 1,506 1,818 2.244 Equity and Liabilities Equity Stated capital (the shares were issued at GH1 each) 300 300 Retained earnings 897 990 1,197 1,290 Non-current liabilities Long-term loans 222 414 Current liabilities Trade payables 159 225 Other payables 240 315 399 540 Total Equity and Liabilities 1,818 2,244