Using CVP analysis build a graph based on the latest income statement. Calculate the following figures for two years based on the income statement: (4 points) . Contribution Margin Ratio Level of sales needed to achieve a desired target profit (for example, if the company wants to increase profits by 10%) Break-even point Margin of safety Explain the meaning of each indicator and describe their dynamics over two years Separate and consolidated statement of profit or loss and other comprehensive income for the period ended from 1 April 2018 to 31 December 2018 and the year ended from 1 April 2017 to 31 March 2018 Group Period from Period from Period from 1 April 1 April 2017 2018 to 31 to 31 March December Parent Company 1 April Period from 2018 to 31 1 April 2017 2018 2018 Notes RO RO 2018 RO 2018 RO 19 14,580,554 23,759,287 December to 31 March Revenue Direct costs Gross profit Administration and general expenses Selling and distribution expenses Loss on disposal of property, plant and equipment Loss on investment-net 13,502,536 21,183,600 21 (12,665,192) (19,914,768) (12,137,274) (18,244,219) 1,915,362 3,844,519 1,365,262 2,939,381 (1,957,272) (2,583,579) (1,554,571) (2,138,154) (924,445) (1,350,347) (994,766) (1,456,472) 225 23 Other income Finance income Operating (loss)/profit Finance costs (Loss)/profit before tax Tax income/(expense) (Loss)/profit for the period/year Other comprehensive income for the period/year Total comprehensive (loss)/income for the period/year 5 (90,988) (90,988) 24 (4,375) (13,927) (4,375) (13,927) 20 209,349 375,285 483,187 765,957 25 26,606 65,746 26,606 65,746 (734,775) 246,709 (678,657) 71,543 27 25 22 25 (80,489) (100,314) (36,276) (29,665) (815,264) 146,395 (714,933) 41,878 139,964 (30,324) 125,554 (675,300) 116,071 (589,379) (22,960) 18,918 (675,300) 116,071 (589,379) 18,918 Separate and Consolidated Statement of Financial Position as at 31 December 2018 31 December Notes 2018 RO Group Parent Company 31 March 31 December 31 March 2018 RO 2018 RO 2018 RO ASSETS Non-current Property, plant and equipment 5 6,406,433 7,113,759 3,683,610 4,182,275 Investment in subsidiaries 515,750 515,750 Fixed deposit Deferred tax assets 72 9.1 1,048,399 1,048,399 27 675,393 537,722 727,632 602,078 Non-current assets Current Inventories 8,130,225 7,651,481 5,975,391 5,300,103 6 4,481,209 3,832,010 4,450,529 3,651,720 Trade and other receivables 7 3,771,104 3,502,574 3,244,883 2,758,158 Due from related parties 18 351,897 2,439,914 Financial assets at fair value through 8 187,604 193,088 187,604 193,088 profit or loss Fixed deposit 9.1 1,025,000 1,025,000 Cash and bank balances 9 908,878 1,193,601 901,098 1,173,652 Current assets Total assets 9,348,795 9,746,273 9,136,011 17,479,020 17,397,754 15,111,402 16,541,635 11,241,532 EQUITY AND LIABILITIES Equity Share capital Legal reserve 11 212 10 12,500,000 12,500,000 12,500,000 12,500,000 3,480,985 12 3,480,985 29,269 29,269 (2,024,793) (1,340,564) (3,838,147) (3,239,839) 13,985,461 14,669,690 12,005,441 12,603,749 3,314,319 29,269 3,314,319 29,269 Capital reserve Retained earnings Total equity LIABILITIES Non-current Term loans Employees end of service benefits Non-current liabilities Current Term loans Short term loan Trade and other payables Income tax payable Due to related parties Current liabilities Total liabilities Total equity and liabilities 14 34 13 684,360 861,368 34,387 61,393 101,855 132,220 90,330 123,072 786,215 993,588 124,717 184,465 356 234,682 234,682 34,678 34,678 1,500,000 1,500,000 969,718 1,478,341 883,279 1,177,208 2,944 21,453 18 563,287 2,541,535 2,707,344 1,734,476 2,981,244 3,493,559 2,728,064 3,105,961 3,937,886 17,479,020 17,397,754 15,111,402 16,541,635 3,753,421 Separate and consolidated statement of cash flows for the period from 1 April 2018 to 31 December 2018 and the year ended from 1 April 2017 to 31 March 2018 Notes Group Period from 1 Period from April 2018 to 1 April 2017 31 December to 31 March 2018 2018 Parent Company Period from I Period from April 2018 to 1 April 2017 31 December to 31 March 2018 2018 Operating activities (Loss)/Profit before tax (815,264) 146,395 (714,933) 41,878 Adjustments for: Depreciation on property, plant and equipment 5 776,575 1,084,032 535,284 785,612 Finance income 25 (26,606) (65,746) (26,606) (65,746) Dividends income 24 (1,109) (13,396) (1,109) (13,396) Gain on sale of financial assets at fair value through profit or loss (1,554) (1,554) Loss on disposal of property, plant and equipment 90,988 90,988 Allowance for impairment of trade receivables Finance expense Fair value gain on financial assets at fair value through profit or loss Allowance for advance to suppliers Provision for end of service benefits 1,031 38,596 5,952 34,373 80,489 100,314 36,276 29,665 221 5,484 28,877 5,484 28,877 22 49,467 129,800 49,467 129,800 14 3,414 23,472 748 20,116 Operating surplus/(loss) working capital changes before 73,481 1,561,778 (109,437) 1,080,613 Changes in: Inventories Trade and other receivables Due from related parties Due to related parties Trade and other payables Cash used in operations (649,199) (2,169,065) (798,809) (2,473,514) (327,955) 123,460 (551,073) (661,287) 2,088,017 (743,917) (1,978,248) 969,688 (508.623) (82,966) (293,929) (252,475) (1.412,296) Tax paid End of service benefits paid Finance costs (33.779) (16,218) (566,793) (1,643,479) (2,080,892) (26,602) (33,490) (25,891) (69,765) (614) Net cash used in operating activities Investing activities Purchase of property, plant and equipment 5 Proceeds from sale of property, plant and equipment Proceeds from sale of financial assets at fair value through profit or loss (80,489) (100,314) (36,276) (29,665) (763,474) (1,713,245) (2,137,062) (1,542,782) (69,249) (1,517,038) (36,619) (324,893) 31,217 31,217 36,525 36,525 Dividends received 1,109 15,943 1,109 15,943 Interest received 26,606 75,165 26,606 75,165 Fixed deposits (placed)/encashed (23.399) 1.975,000 (23.399) 1.975,000 Net cash (used in)/generated from investing activities (64.933) 616,812 (32,303) 1,808,957 Financing activities Repayment of term loan (177,008) (234,939) (27,006) (34,934) Receipt of short term borrowing 1,500,000 1,500,000 Net generated from/(cash used) in financing activities 1,322,992 (234,939) 1,472,994 (34,934) Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of the year Cash and cash equivalents, end of the year 9 (284,723) (381,601) (272,554) (363,039) 1.193,601 1,575,202 908,878 1,193,601 1,173,652 1,536,691 901.098 1,173,652