The following information relates to KK ltd, a company listed at NSE. The sharehoders are note sure of the overall performance hence they need more understanding about the company's position. You have been appointed as the financial analyst and the following financial statements have been provided to you for the year ended 31st Dec 2019

The balance sheet , As at 31st Dec 2019

Fixed Assets Ksh. '000'

Intangible 123,000

Tangible 2,079,500

Investments 10,000

2,212,500

Current Assets

Stocks 479,000

Debtors 1,774,500

Cash and short-term investments 5,000

2,258,500

Current liabilities

Trade creditors 956,500

Bank overdraft 504,000

Other curent liabilities 152,500

1,613,000

Net working capital 645,500

Total assets 2,858,000

Long-term Loans 124,000

Other long-termliabilities 33,000

total non-current liabilities 157,000

Share capital (10 Million shares of ksh 30 each) 300,000

Profit and loss account

Brought forward 1,896,500

Retained for year 504,500

Shareholder fund 2,701,000

Long-term liabilities & shareholders funds 2,858,000

Income statement of Tribulations Limited for the year to December 31 2019

Ksh.'000'

Sales revenue 1,900,000

Less: Cost of Sales (880,000)

Gross Profit 1,020,000

Less: operating Expense (270,000)

Earnings before interest and taxes 750,000

Interest Expense (130,000)

Profit before tax 620,000

Less: Income Tax Expense (92,000)

Profit after tax 528,000

Less: proposed dividends (23,500)

Retained earnings 504,500

As a financial analyst, make a report on the overall

Required:

Make a comprehensive report to the shareholders of the company with justifications and comment the possible recommendations on how they can improve the company better(20 marks)