Section B - Answer ALL questions (56 marks in total) Hand-write your answers in the Answer Book Question 1 (30 marks) You learn below from the annual report of ACY ONE Limited: "ACY ONE Limited is a retailer of clothing products. In recent years, the company has been actively developing its brand value by enhancing the service quality in stores and by investing more resources in promotion activities. The management believe that a stronger brand value would strengthen its pricing power and attract more customers. ACY ONE Limited Statement of Profit or Loss For the years ended 31 December 2017 to 2019 Year 2019 Year 2018 Year 2017 Sales revenue Less: Cost of goods sold Gross profit 315,180 (243,319) 71,861 306,000 (241.740) 64,260 300,000 (240,000) 60,000 Selling expenses Administrative expenses (25.214) (16,389) (18,360) (15,606) (9.000) (15,000) Income before tax 30,258 30,294 36,000 Less: Income tax expense (6,052) (6,059) (7.200) Net income 24,206 24.235 2 8,800 Required: (a) Compute the index-number trend percents for below accounts for each of the three years, using year 2017 as the base year. (i) Sales revenue: (1) Cost of goods sold; and (1) Selling expenses (9 marks) (b) Express the statement of profit or loss above in common-size percents for 2017 to 2019. (15 marks) (c) For itsm and item (in) in Part (a) above, analyze the trend, the observed results, and the likely reason(s) behind respectively. (6 marks) Total for Question 1: 30 marks