RST Co is considering purchasing an interest in its competitor XYZ Co. The managing director of RST Co has obtained the three most recent statements of comprehensive income and statements of financial position of XYZ Co as shown below. XYZ CO STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEARS ENDED 31 DECEMBER Revenue 18,000 2017 GHS'000 18,900 10,340 8,560 1,670 1,503 5,387 215 600 4,572 2,000 2,572 11,081 9,130 3,995 3,164 55 8,000 7,584 446 3,400 1,195 1,800 Cost of sales Gross profit Distribution costs Administrative expenses Operating profit Interest payable on bank overdraft Interest payable on 12% debentures Profit before taxation Income tax Profit after taxation Assets Non current assets Land and buildings Plant and machinery Current assets Inventory Trade receivables Cash Equity and liabilities Equity Share capital Retained earnings Non-current liabilities 12% debentures 20Y1 20Y4 Current liabilities Trade payables Bank Taxation Dividend payable 11,460 8,896 1,775 1,440 50 8,000 6,434 390 1,300 897 1,600 2016 GHS000 20,356 3,265 23,621 14,434 5,000 4,187 23,621 12,121 9,020 2,663 2,260 53 8,000 7,313 388 2,300 1,420 1,696 2016 10,440 7,560 1,565 1,409 4,586 104 600 3,882 1,380 2,502 2017 GHS000 21,141 4,976 26,117 15,313 5,000 5,804 26,117 2018 GHS'000 19,845 11,890 7,955 1,405 1,591 4,959 450 600 3,909 1,838 2,071 2018 GHS000 20,211 7,214 27,425 15,584 5,000 6,841 27,425 GHS'000 Required Prepare a report for the managing director of RST Co commenting on the financial position of XYZ Co and highlighting any areas that require further investigation. (Marks will be awarded for ratios and other financial statistics where appropriate.)