3 Arment 2 Apu X + wa/Asment 22.pdf 122 2. The year 2017 had been a great year for Blue Sea Enterprises Limited. The net profit of the company has increased by almost 70% compared to the previous year. The management has declared an increased dividend on its equity shares. The comparative financials of the company for the years 2016 and 2017 are given as follows: (5 Marks) Particulars (Rs. In millions 2017 2016 Sales 1020 872 Other operating income 58 47 Total 1078 919 Cost of goods sold 640 502 Employee cont 90 85 Selling and administrative expenses 160 Depreciation 44 40 Interest (Net) 64 86 Profit before tax and extra ordinary items 80 84 Extraordinary items 62 0 Profit before tax 142 84 Tax 50 27 Profit after tax 92 57 Dividend 45 30 Retained carnings 47 27 You are required to: 1. Calculate cash operating profit, operating profit, pre-tax profit and net profit for the years 2016 and 2017 2. Has the performance of the company really improved? Analyse the financial performance using the above ratios and expense ratios 3. Calculate the dividend pay-out ratio for the two years. Is the higher dividend justified for the year 2017 o Add