Question Three: The manager of Jivunie Ltd has encountered difficulties while going through -income statement and...

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Question Three: The manager of Jivunie Ltd has encountered difficulties while going through -income statement and balance sheet of the company's final accounts for the year ended 31st December, 2018. He has decided to seek your professional advice on the financial position of the company and presented the following financial statements: Summarized Income Statement as on 2017 - 2018 2017 2018 (Kshs.000) (Kshs.000) Income Statement Net Sales Cost of goods sold Admin. Expenses Selling Expenses Net Profit 600 750 400 600 20 20 10 10 170 120 Balance Sheet as on 31st December, 2017 - 2018 Balance Sheet Equity Capital 6% Preference Share Capital (Kshs.000) (Kshs.000) 2017 2018 400 400 300 300 Reserves 6% Debentures 200 245 100 150 Bills Payable 50 75 Creditors 150 200 Tax Payable 100 150 1,300 1,520 Land 100 100 Buildings 300 270 Plant 300 270 Furniture 100 140 Stock 200 300 Cash 300 440 1,300 1,520 Required: Prepare comparative statements from the above data, analyze and interpret the changes in both the statements so as to advice the management on the financial position of the company in both the statements (15marks) Question Three: The manager of Jivunie Ltd has encountered difficulties while going through -income statement and balance sheet of the company's final accounts for the year ended 31st December, 2018. He has decided to seek your professional advice on the financial position of the company and presented the following financial statements: Summarized Income Statement as on 2017 - 2018 2017 2018 (Kshs.000) (Kshs.000) Income Statement Net Sales Cost of goods sold Admin. Expenses Selling Expenses Net Profit 600 750 400 600 20 20 10 10 170 120 Balance Sheet as on 31st December, 2017 - 2018 Balance Sheet Equity Capital 6% Preference Share Capital (Kshs.000) (Kshs.000) 2017 2018 400 400 300 300 Reserves 6% Debentures 200 245 100 150 Bills Payable 50 75 Creditors 150 200 Tax Payable 100 150 1,300 1,520 Land 100 100 Buildings 300 270 Plant 300 270 Furniture 100 140 Stock 200 300 Cash 300 440 1,300 1,520 Required: Prepare comparative statements from the above data, analyze and interpret the changes in both the statements so as to advice the management on the financial position of the company in both the statements (15marks)