Question No.2

The following information relates to Octagon Limited for the years ended 31 March 2018 and 31 March 2019.

	2019	2018
	$000	$000
Sale Revenue	3,800	2,500
Cost of Sales	(1,800)	(1,200)
Gross Profit	2,000	1,300
Administrative Expenses	(315)	(250)
Selling & Distribution Expenses	(200)	(150)
Profit Before Tax	1,485	900
Income Tax	(210)	(150)
Profit for the year	1,275	(750)
Dividend Paid	(90)	(90)
Retained Profit	1,185	660
Retained Earnings b/f	2,565	1,110

Required:

Prepare a Statement of Horizontal Analysis and analyze the results