QUESTION ONE Love First Ltd operates supermarket chains across the sixteen (16) regions of Gha na. The fim has been in commercial operation for more than two decades, growin g its operations through an effective supply chain and financial management. Ho wever, in the last few years, keen competition and worsening general economic pe rformance have steadied the consistent growths experienced over the years, result ing in the entity disposing off part of its operations. Below are the financial state ments of Love First Ltd: Total Income statement for the year ended 31 December 2020 (with comparatives) 2020 2019 Continuing Discontinued Continuing Discontinued Total operations operations operations operations GH000 GH000 GHC000 GH000 GH_000 GH000 Revenue 37,400 5,650 43,050 31,350 7,440 38,790 Cost of sales (32,190) (4,830) (37,020) (26.030 (6 390) (32,42 0 Gross profit 5,210 820 6,030 5,320 1,050 6,370 Distribution (1,302) (425) (1,727) (1,160) (502) (1,662) costs Administrativ (2,225) (657) (2,882) (1,330) (460) (1,790) e expenses Interest payab (340) (12) (352) (284) (31) (315) le Profit/(loss) 1,343 (274) 1,069 2,546 57 2,603 before tax Tax (expens (826) 50 (776) (1210) (45) (1255) e) /credit Profit for the (224) 293 1.336 12 1,348 period 517 Abridged statement of financial position as at 31 December 2020 (with compara tives) 2020 2019 GH000 11,775 GH000 14,080 Non-current assets Current assets: Inventories Other current assets Total assets 4,986 4,044 20,805 5,445 6,525 26,050 8,896 8,798 Share capital & reserves Non-current liabilities: Debenture loan Current liabilities 5,800 6,109 9,100 8,152 Page 1 of 1 3:45 C . . O