Seminar 45 Answers Essay example

Submitted By HuiG01
Words: 568
Pages: 3
Open Document
1
The Following Information is available for Dreads :

2011
2012

Operating profit

156
187

Depreciation charge for the year
47
55

Closing Inventory

27
26

Trade Receivables

24
25

Trade Payables

15
14

Required : What is the cash generated from Operating Activities for 2012

£m

Operating Profit (2012)

187

Adjustments:

Depreciation

55

(inc)/dec in Inventory

1

(inc)/dec in Trade Receivables
(1)

inc/(dec) in Trade Payables

(1)

Cash Generated From Operations
241

2
(5.2 p181) The Following information has been taken from the financial statements of Juno PLC

2011
2012

Operating profit

156
187

Depreciation charge for the year
47
55

Closing Inventory

27
31

Trade Receivables

24
23

Trade Payables

15
17

Required : What is the cash generated from Operating Activities for 2012

£m

Operating Profit (2012)

187

Adjustments:

Depreciation

55

(inc)/dec in Inventory

-4

(inc)/dec in Trade Receivables
1

inc/(dec) in Trade Payables

2

Cash Generated From Operations
241

Jubilee Ltd ratio Question : Answers

2011
2012
Comments

1. Gross Margin % = GP/Sales *100

Gross Profit

1600
1150

Sales

4400
4000

GP Margin

36.36%
28.75%

Reduced gross margin (despite falling revenue the cost of sales are higher) - reduced completive performance against market and higher purchasing costs

2. Operating Profit %=OP/Sales *100

Operating Profit

1130
450

Sales

4400
4000

OP margin

25.68%
11.25%
Lower GP margin is compounded by a large increase in operating costs - could indicate management are not keeping close control of operations

3. ROCE % = Operating Profit/Capital Employed

Operating Profit

1130
450
Lower

Equity

3,868
4,192
Higher

Long Term Borrowing
1,000
2,000
Higher

ROCE

23.21%
7.27%
Dramatic reduction - indicates deteriorating financial performance. Would be useful to see competitor ROCEs to see if this is an industry issue.

4. ROE % = Profit for Year/Equity * 100
Profit for Year (after tax)
910
341
Equity

3,868
4,192
ROE %

23.53%
8.13%
Dramatic reduction - much reduced return for investors - has this impacted on share price?
5. Current Ratio =Current Assets/Current Liabilities

Current Assets

2900
2700
Lower

Current Liabilities
1032
1508
Higher

Current Ratio

2.81
1.79
Liquidity has deteriorated - company is now a more risky investment,

6. Acid Test (quick)

Acid Test = (Current Assets-Inventory)/Current Liabs

CA-Inventory

1400
1000

Current Liabs

1032
1508

Acid Test

1.357
0.663
Dramatic Deterioration - as above

7. Gearing : Debt/(Debt+Equity) *100

2011
2012

Debt

1000
2000

Equity

3868
4192

Gearing

20.54%
32.30%

Increased: Risk ? (need to consider financial strategy and interest cover)

8. Inventory Turnover (based on closing not average stock)

2011
2012

Closing Inventory
1500
1700

Cost of sales

2800
2850

Inventory Turnover Days
195.54
217.72
DAYS : High!

9. Av Settlement Trade Payables = Average Payables/Cost of sales *365

2011 Trade Payables

852

2012 Trade Payables

1339

COGS 2012

2850

=
140.30
DAYS
Seems High need to understand policy/strategy/supply chain

10. Av Settlement Trade Receivables = Average Receivables / sales *365

2011 Trade Receivables
900

2012 Trade Receivables
1000

2012 Sales

4000

Seems high need to understand policy/strategy/supply chain

=
86.69
DAYS

11. Both have deteriorated = A

Style Limited

Dyson p 245, 10.9

2011

2012

£ 000
£ 000

£ 000
£ 000
Trading & Profit and Loss
Show More

Related Documents: Seminar 45 Answers Essay example

Essay on Seminar 1

communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. § Do not remove this notice. 1 Words of Wisdom “The secret of a good [seminar] is to have a good beginning and a good ending; and to have the two as close together as possible.” (George Burns) 2 Business and Economics Welcome to the wonderful world of ... Advanced Strategic Management Presented by Ralph Kober Accounting…

Words 3552 - Pages 15

International Business And Management Assignment

appointment with me, please send your request by email Table of Contents Outline 3 1. Introduction to the module ……………………………………………………………………………………….. 3 2. The Purpose of the Lecture Programme …………………………………………………………………….. 3 3. The Purpose of the Seminar Programme …………………………………………………………………… 4 4. Timetable …………………………………………………………………………………………………………………… 4 5. Learning Outcomes ……………………………………………………………………………………………………. 5 6. Attendance ……………………………………………………………………………………………………………….. 5 Schedule 6 Assessment 6…

Words 6450 - Pages 26

How To Deal With Differences

facilitating exploration of different perspectives enables teacher and student to appreciate difference through reflexivity which enhances the student learning experience and enriches teaching practice leading to the participation in lectures and seminars of students who may otherwise remain silenced. Keywords - Action research, Difference, Diversity, Higher Education, Widening participation. ——————————  —————————— T1 Introduction he research reported in this paper was undertaken as part…

Words 6987 - Pages 28

Essay about Marketing Concept

Department of Marketing, Entrepreneurship & Strategy BSc Business Studies Fundamentals of Marketing May 2013 MKT104 (Level 4) CRN: 55062 Student Name: _________________________ Module Leader: Martin Gilbert Contents Page INTRODUCTION 2 MODULE TUTORS (6 & 7) 2 AVAILABILITY OF MODULE TUTORS (8) 2 RATIONALE 2 AIMS (9) 2 LEARNING OUTCOMES (9) 2 MODULE TEACHING (10) 3 TEACHING PLAN – indicative content (11) 4 RESOURCE LIST (12) 10 ASSESSMENT (13) 10 ASSIGNMENT…

Words 2492 - Pages 10

Business law Essay

partially in oral form under (Article 11) (5). When Bitterand a French distributor of educational material met Mr. Townsend an American manufacturer of an English learning computer software program Anglianlingua at a teaching English as a second language seminar. During a conversation between the both of them Townsend describes his product in glowing terms, in essence he made an offer or a proposal for Bitterand to purchase his product and she accepts his offer when she agree to purchase 1000 Anglialingua…

Words 1813 - Pages 8

2015 10 Week Pre Sessional Student S Handbook 2 Essay

Complaints 11 19 Appendix 1: Weekly scheme of work 12 20 Appendix 2: Reading goals, syllabus and assessment 14 21 Appendix 3: Writing goals, syllabus and assessment 15 22 Appendix 4: Grammar and vocabulary goals, syllabus and assessment 16 23 Appendix 5: Seminar skills goals, syllabus and assessment 17 24 Appendix 6: Presentation skills goals, syllabus and assessment 18 25 Appendix 7: Listening goals, syllabus and assessment 19 26 Appendix 8: Research project schedule 20 27 Appendix 9: Research project titles…

Words 9401 - Pages 38

PMP certification exam Essay

experience and an accidental project manager with a similar title and no real experience? The answer is that HR recruiters couldn’t tell the difference. Nor could the actual hiring managers make the distinction. The accidental project managers flooded the IT market, and corporations were swift to take advantage. Employers dropped the rates they were willing to pay for project managers’ salaries by 25 to 45 percent. The best way to distinguish yourself from the growing list of project managers is to…

Words 4390 - Pages 18

HIV Presentation 2 1 Essay

PRESENTED BY Minash Keshwani Ayisat Omotayo Atinuke Bangbelu Oluwatosin Odetila Halimat Haleem Kafayah Ojugbele What is HIV/AIDS  HIV means Human immunodeficiency virus  AIDS means Acquired Immunodeficiency Syndrome. This is a disease of the human immunodeficiency virus. Acronym H I – Human – This particular virus can only affect human begins. – Immunodeficiency – HIV decrease the immune system by destroying important cells that fight diseases and infections. V – Virus – Virus…

Words 2331 - Pages 10

Tourism: Management and Case Study Essay

Own potential Roles and responsibilities Career Development - Relevant managerial skills, personal skills, career development plan 45. Programme Specification 46. Accrediting Body: EDEXCEL 47. Course: BTEC HND IN TRAVEL AND TOURISM MANAGEMENT 48. Unit 3: THE DEVELOPING MANAGER 49. Wk 50. Lecture Schedule 51. Outcome of session 52. Activity/seminar and…

Words 4879 - Pages 20

Ikea Global Retailer Essay

AN UNDERSTANDING OF THE COMPLEX PROCESS OF CULTURE BUILDING IN AN ORGANIZATION AND ACROSS BORDERS – USING THE EXAMPLE OF IKEA BACHELOR THESIS Authors: Emilie Martens (19860203) Tobias Mauelshagen (19810623) Course: IBO 348 – VT 2007 Examiner and Tutor: Richard Nakamura Växjö universitet Ekonomihögskolan 31st of May 2007 ABSTRACT i Abstract Nowadays, companies face many difficulties due to the much competitive environment they have to evolve in. Therefore, multinational ones…

Words 17539 - Pages 71