You are tasked with analysing the last 2 years of accounts of a global mining firm. A simplified statement of financial position and income statement are provided below.

1. Using the information above, carry out a full financial statement analysis using apage 90 variety of financial ratios. (60 marks)
2. How do you think the company has been performing over the past 5 years? Has there been an improvement or deterioration in the firm’s fortunes? What is driving the changing performance? Write a report, outlining your analysis and findings. (40 marks)

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Perlod Ending Total revenue Cost of revenue Gross profit Depreciation Other expenses EBIT Interest EBT Tax Net income Statement of Financial Position ( millions) Period Ending Assets Current assets Cash and cash equivalents Short-term investments Net receivables Inventory Other current assets Total current assets Property, plant and equipment Goodwill Total non-current assets Total assets Liabilities Current liabilities Accounts payable Short/current long-term debt Other current liabilities Total current liabilities Long-term debt Total liabilities Shareholders' equity Total shareholders' equity Equity plus liabilities Yr-0 7,931 5,787 2,144 321 100 1723 1,135 588 153 435 Yr-O 390 6,849 693 1,201 200 9,393 10,201 21 10,222 19,615 1,715 8,945 111 10,771 7,161 17,932 1683 19.015 Yr-1 0,579 5,130 1,443 182 134 1,127 957 170 44 126 Yr-1 381 4,547 533 909 250 6,620 10,920 23 10,943 17,563 1,190 5,830 109 7,195 3,810 11,011 6,552 17,503 Yr-2 8,204 5,318 2,880 201 115 2,570 1,272 1298 337 961 Yr-2 458 4,608 1,025 1,299 86 7,470 10,300 28 10,328 17,804 975 3,050 303 4,934 1557 0,491 11,313 17,804 Yr-3 6,502 3,840 2,002 412 247 2,003 1,009 994 258 736 Yr-3 1585 578 932 880 74 4,049 10,350 40 10,390 14,439 620 1,727 655 3,002 1,478 4,480 9.959 14,439