You are required to locate the latest Statement of Comprehensive Income (SCI) and Statement of Financial Position (SFP)

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You are required to locate the latest Statement of Comprehensive Income (SCI) and Statement of Financial Position (SFP)

You are required to locate the latest Statement of Comprehensive Income (SCI) and Statement of Financial Position (SFP) of the selected company to be attached under the appendices. Based on the documents, you are to perform the following tasks on the selected company:

(a) Describe the company’s business operation. Suggest any TWO (2) key non-financial activity information likely to be used to measure the efficiency of its operation.

(b) Describe the different timings customers/patients are likely to make payments with reference to service/good received. Illustrate how revenue is reported based on the collection under accrual accounting.

(c) Identify any TWO (2) key expenses and explain with justification their likely cost behavior. Briefly explain how a change in business activity is likely to impact each of the two expenses and the likely impact on profits.

(d) perform and interpret horizontal and vertical analysis for the Revenue and 2 key Expenses over past 2 years (use group results if available).

(e) perform and interpret ratio analysis covering Net Profit Margin, Return on Investment and Economic Value Added (assume cost of capital to be 10%) over past 2 years (use group results if available). You are to assume Investment to be Total Assets.

(f) Suggest TWO (2) ratios based on the activities under (a) that can be used to measure the efficiency of the operation. Briefly explain what each ratio measures