You are a CPAworktng for FastAir Pty Limited [FastAir}. a company involved in the design and construction of jet engines Fast-Air is currently involved in discussions with Hydro-Speed Pty Limited (Hydro-Speed). an entity involved in the design adapted for use in aircraft. FastAir and llydroSpeed are considering establishing a new business. The business will be r power both ferries and jet aircraft. The benets for FastAir are potentially huge as jet fuel is becoming increasingly expensive. The development of a hydi Under any agreement Fast-Air and HydroSpeed will each have a 50% interest in HydroFast for an initial contribution of H The proposed investment was discussed at the last Board meeting of Fast Air and the directors identified the following thrt > Subsidiary {incorporated} '9 Associate (incorporated) '3- Joint operation (unincorporated) The agreement with Hydro-Speed is due to be finalised by 31 December 20K? and HydroFast is due to commence manuf It the agreement results in an incorporated entity being established HydroFast will sell all of the engines to FastAir and Hydro-Fast will distribute all of the engines to FastAir and HydroSpeed in equal proportions. In either event. it is assur parties by 31 December 20318. The directors of FastAir have asked for your advice as to which investment option is the most appropn'ate for FastAir. In I 1. Determine the likely impact of each of the three investment options on the balance sheet and income statement of Fas' 2. Explain the likelv impact of each of the three investment options on key financial ratios of FastAir