Question 5 (20 marks) Honey Bun Company was analysed by your investment broker and the following relationships was discovered: Sales/total asset 1.5x Return on assets (ROA) 3% Return on equity (ROE) 5% The information was new to you so you needed more information on financial statements and financial ratios. Required a) Discuss the roles of financial reporting and financial statement analysis. (2 marks) b) Discuss the key reports of a financial statement, Income Statement, Balance Sheet and Cash Flow. (3 marks) c) Explain Vertical and Horizontal common size analysis of financial statements. (2 marks) d) Interpret the following categories of ratios, Activity, Solvency, Liquidity, Profitability and Valuation ratios. (5 marks) e) Calculate Honey Bun's Profit Margin (4 marks) f) Calculate Honey Bun's debt ratio. (4 marks)