QUESTION 1 Study the information below and answer the following question

1.1 Were there are any additions to or disposal of property, plant and equipment during the financial year ended 31 December 2021? Motivate your answer. (3 Marks)

1.2 Comment on the decrease in retained earrings (3 Marks)

1.3 Comment on FIVE (5) other significate changes that occurred in the company's financial position during 2021. (10 Marks)

1.4 Apart from the statement of the financial Position and ratio analysis, what other financial information should be considered when commenting on the financial health of the company? (4 Marks)

AMC Limited

Statement of financial Position as at 31 December

2021 2020

$ $

ASSETS

Non-current assets ? ?

Property, plant and equipment (cost) ? ?

Accumulated depreciation (2 000 000) (1 400 000)

Carry value ? ?

Investment 10 000 000 12 000 000

Current Assets 7 000 000 4 890 000

Inventories 400 000 100 000

Accounts receivables 5 800 000 4 000 000

Cash 800 000 790 000

5 200 000 25 690 000

EQUITY AND LIABILITIES

Equity 12 000 000 20 200 000

Ordinary share capital 3 000 000 2 400 000

Retained earning 9 000 000 17 890 000

Non-current liabilities 10 000 000 3 400 000

Long-term loan 10 000 000 3 400 000

Current Liabilities 3 200 000 2 000 000

Accounts payables 3 200 000 2 000 000

25 200 000 25 690 000