Rudo is considering investing in CDE LTD, a listed entity, and has asked for your analysis of the financial performance and financial position of CDE LTD based on the most recently published financial information. CDE LTD is a manufacturing entity operating in the technology sector. The entity has two large manufacturing plants, one in Harare and the other in Bulawayo. The majority of sales revenue is earned in Masvingo and Mutare. CDE LTD recently invested in technology associated with mobile phone ports for motor vehicles and sales of these items began on 1 April 2019. The financial statements for CDE LTD are provided below: Consolidated statement of financial position as at 31 December 2019 2018 ASSETS $m $m Non-current assets Property, plant and equipment 290 235 Intangible assets development costs 50 30 340 265 Current assets Inventories 110 80 Trade and other receivables 75 60 Cash and cash equivalents - 10 185 150 Total assets 525 415 EQUITY AND LIABILITIES Equity Share capital ($1 shares) 80 60 Share premium 30 10 Other elements of equity 2 2 Revaluation reserve 20 - Retained earnings 220 248 Total equity 352 320 Non-current liabilities 5% convertible debt 22 20 Provisions 14 5 36 25 Current liabilities Trade and other payables 120 70 Short-term borrowings 17 - 137 70 Total liabilities 173 95 Total equity and liabilities 525 415 Consolidated statement of comprehensive income for the year ended 31 December 2019 2018 $m $m Revenue 470 410 Cost of sales (285) (260) Gross profit 185 150 Administrative expenses (56) (35) Distribution costs (70) (60) Finance costs (5) (1) Profit before tax 54 54 Income tax expense (15) (13) Profit for the year 39 41 Other comprehensive income that will not be reclassified to profit or loss Revaluation gains from property (net of tax) 20 - Total comprehensive income 59 41 Additional information: 1. Included in provisions is $8 million in respect of a lawsuit that was raised by a competitor, X which is accusing CDE LTD of using technology developed by X, without a licence. The lawsuit was filed in December 2019 and the provision represents the initial estimate by CDE LTDs legal advisors of a potential settlement. 2. There was a significant labour dispute in February 2019 in the manufacturing plant in Bulawayo. CDE LTD settled the dispute within one month but incurred significant legal fees in the process. Required: (a) Analyse the financial performance and the financial position of CDE LTD. (b) Discuss why investors may find it useful to review the segmental information of CDE LTD when attempting to assess the future profitability of CDE LTD.