Telford Industrial Services plc is a medium-sized business. Extracts from the business€™s financial statements appear below.

Required:

Prepare a set of common-sized statements of financial position and common-sized income statements, on a vertical basis, using equity as the base figure for the statements of financial position and sales revenue as the base figure for the income statements.

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Summary of statement of financial position at 31 December 2008 £m 2009 2007 2010 ASSETS £m £m £m Non-current assets 48 51 65 64 Current assets Inventories 21 22 23 26 Trade receivables 34 42 34 29 Cash 3 55 67 57 55 Total assets 103 118 122 119 EQUITY AND LIABILITIES Equity 48 61 61 63 Non-current liabilities 30 30 30 30 Current liabilities Trade payables Short-term borrowings 20 27 25 18 25 31 26 103 Total equity and liabilities 118 122 119 Summary of income statements for years ended 31 December 2007 2008 2009 2010 £m £m £m £m Sales revenue 152 170 110 145 Operating profit Interest payable Profit before taxation 28 40 15 (4) (3) (4) 24 37 10 Taxation (12) (16) Profit for the year 12 21 3 6.