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Transcription of this question: 4.Dana’s Handbags (DH)Dana’s Handbags (DH) is a small manufacturer of women’s handbags. DH sells directly tolarge retail chains in Europe. The company is privately owned and has fifteen shareholders.Table 1: Selected financial data for DH for 2016 and 2017 (figures in $000s)Sales revenueCost of goods soldGross profitNet profit after interest and taxTotal current assets (at year end)Total current liabilities (at year end)Stock (inventory)Cash2016281414137050003000300010002017290001500014000130052003200Beginning in DH adopted a programme of corporate social responsibility (CSR) by:• donating money to charities• encouraging employees to do three paid hours per week of community service duringwork hoursusing only biodegradable materials in its handbags.This programme was expensive.DHs management thought that a programme of corporate social responsibility (CSR) wouldstrengthen DHs brand. During the first year of the corporate social responsibility (CSR)programme, employee morale improved and DH received favourable media attention.However, at the annual general meeting in January 2018, financial results from 2017revealed that sales growth had not improved. Several influential shareholders complainedabout the high cost of the corporate social responsibility (CSR) programme. Othershareholders suggested that DH should develop consumer awareness that it is a sociallyresponsible company.(a)(b)(c)(d)Identify two features of a private limited company.Calculate:(i) the net profit margins for DH for 2016 and 2017;(ii) net current assets (working capital) for DHfor 2016 and 2017.Explain one method of above-the-line promotion and one method of below-the-line promotion that DH could use to raise consumer awareness that it is a sociallyresponsible company.Discuss DHs decision to develop a policy of corporate social responsibility (CSR).[2][2][2][10]

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