RST Co is considering purchasing an interest in its competitor XYZ Co. The managing director of RST Co has obtained the three most recent statements of comprehensive income and statements of financial position of XYZ Co as shown below. XYZ CO STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEARS ENDED 31 DECEMBER 2016 2017 2018 GHS'000 GHS'000 GHS'000 Revenue 18,000 18,900 19,845 Cost of sales 10,440 10,340 11,890 Gross profit 7,560 8,560 7,955 Distribution costs 1,565 1,670 1,405 Administrative expenses 1,409 1,503 1,591 Operating profit 4,586 5,387 4,959 Interest payable on bank overdraft 104 215 450 Interest payable on 12% debentures 600 600 600 Profit before taxation 3,882 4,572 3,909 Income tax 1,380 2,000 1,838 Profit after taxation 2,502 2,572 2,071 2016 2017 2018 GHS000 GHS000 GHS000 Assets Non current assets Land and buildings 11,460 12,121 11,081 Plant and machinery 8,896 9,020 9,130 20,356 21,141 20,211 Current assets Inventory 1,775 2,663 3,995 Trade receivables 1,440 2,260 3,164 Cash 50 53 55 3,265 4,976 7,214 23,621 26,117 27,425 Equity and liabilities Equity Share capital 8,000 8,000 8,000 Retained earnings 6,434 7,313 7,584 14,434 15,313 15,584 Non-current liabilities 12%debentures20Y120Y4 5,000 5,000 5,000 Current liabilities Trade payables 390 388 446 Bank 1,300 2,300 3,400 Taxation 897 1,420 1,195 Dividend payable 1,600 1,696 1,800 4,187 5,804 6,841 23,621