According to the Vertical Analysis Report, identify all the significant items and discuss the follow questions: 1. What is the trend of each significant item from 2018 to 2019? 2. What are the reasons that cause those changes? (Discuss at least two reasons). If you make any assumption, please clearly state in your answer. (Hint: It is assumed that |5%| change or above over the year is significant, for instance, the percentage change of Inventory is 20.22%-20.40%=-0.18%, so this item is NOT a significant item.) (maximum of 300 words)

Identify one ratio a bank lender would be particularly interested in and explain the reason.(maximum of 150 words)

2018 NZ$M Kevin Construction Limited Vertical Analysis Report As at 30 June 2019 2019 NZ$M Assets Current assets Cash and cash equivalents 7.14% Short-term investments 0.16% Current tax assets 0.18% Net receivables 18.67% 1,830 Inventory 20.22% 1,982 Other current assets 0.10% 10 Total current assets 4,556 Non-current assets Property plant and equipment 28.56% 2,800 Other non-current assets 24.97% 2,448 Total non-current assets 5,248 Total assets 100.00% 9,804 700 16 18 500 2.02% 5.75% 0.02% 18.78% 20.40% 0.32% 1,634 1,775 28 4,115 24.13% 28.59% 2,100 2,488 4,588 8,703 100.00% 17.21% 3.29% 3.93% 18.50% 5.70% 3.33% Liabilities Current liabilities Accounts payable Borrowings Other current liabilities Total current liabilities Borrowings Other non-current liabilities Total non-current liabilities Total liabilities . 1,687 323 385 2,395 2,284 233 2,517 4,912 1,610 496 290 2,396 1,607 262 1,869 4,265 23.30% 2.38% 18.46% 3.01% - - Equity Share capital Total liabilities and equity 49.90% 100.00% 4,892 50.99% 9,804 100.00% 4,438 8,703