Income Statement	30-Jun-16	30-Jun-17	30-Jun-18
Turnover	1,493,163,000	1,520,410,000	1,498,426,000
Cost of Sales	-	-	-
Gross Profit	1,493,163,000	1,520,410,000	1,498,426,000
Expenses	872,367,000	921,281,000	925,668,000
Depreciation	94,500,000	97,684,000	99,221,000
Operating profit (EBIT)	524,397,000	496,350,000	467,541,000
Total Interest Paid	23,709,000	23,709,000	23,709,000
Interest Received	2,268,000	6,603,000	4,031,000
Profit Before Tax	496,510,000	473,554,000	454,818,000
Taxation	136,854,000	130,254,000	128,267,000
Profit After Interest and Tax	359,656,000	343,300,000	326,551,000
Ordinary Dividends Paid	184,316,000	192,955,000	178,904,000
Retained Profits	111,965,000	84,170,000	97,922,000
Balance sheet
Year	30-Jun-16	30-Jun-17	30-Jun-18
Total Equity	871,828,000	934,311,000	1,057,866,000
Ordinary Share Capital	4,341,000	4,357,000	4,357,000
Share Premium	163,617,000	175,020,000	175,146,000
Non-Distributable Reserves	(379,212,000)	(412,318,000)	(386,811,000)
Distributable Reserves	1,083,082,000	1,167,252,000	1,265,174,000
Outside Shareholders Interest	-	-	-
Preference Shares	397,500,000	-	-
Deferred Tax	144,685,000	151,171,000	175,147,000
Other Non-Current Liabilities	302,374,000	89,517,000	777,352,000
Director's & Shareholders Loans	37,893,000	-	-
Long Term Interest Bearing	314,120,000	320,000,000	494,120,000
Total Capital	2,068,400,000	1,494,999,000	2,504,485,000
Fixed Assets	1,844,140,000	1,917,022,000	2,285,396,000
Intangible Assets	45,558,000	50,486,000	54,678,000
Investments & Loans	-	200,000	200,000
Other Non-Current Assets	5,747,000	10,785,000	12,410,000
Net Current Assets	172,955,000	(483,494,000)	151,801,000
Current Assets	306,648,000	372,367,000	333,046,000
Inventory	7,734,000	6,845,000	7,298,000
Trade Receivables	190,216,000	249,858,000	264,373,000
Cash & Near Cash	104,309,000	115,664,000	53,093,000
Dividends Receivable	-	-	-
Tax Receivable	4,389,000	-	8,282,000
Current Liabilities	133,693,000	855,861,000	181,245,000
Trade Payables	130,546,000	757,810,000	178,915,000
Dividends Payable	3,147,000	2,860,000	2,330,000
Tax Payable	-	7,543,000	-
Short-Term Interest Bearing	-	87,648,000	-
Net Assets	2,068,400,000	1,494,999,000	2,504,485,000

1. Discuss the performance of City Lodge over the years 2016, 2017 and 2018. Assume that shareholders are expecting a minimum Return on Equity of 18% per annum. Calculate the ratios that you think you need to use to make this determination. [10 Marks] 2. Show how the levers that drive ROE are changing from one year to the next between 2016, 2017 and 2018. Comment on what you see. [10 marks