1. Provide calculations and supporting workings for the following eight key financial ratios for your business for Year 4:

Return on capital employed

Operating profit margin

Gross profit margin

Revenue on capital employed

Inventory holding period

Settlement period for trade receivables

Current ratio

Gearing ratio

STATEMENT OF PROFIT OR LOSS STATEMENT OF FINANCIAL POSITION % W$000 W$000 W$000 W$000 14989 REVENUE 100.0 3882 3882 25.9 25.9 NON-CURRENT ASSETS Property, Plant & Equip. Development Costs Total Non Current Assets 750 1612.5 2362.5 7764 7225 48.2 CURRENT ASSETS Inventory Receivables Prepayments Cash at Bank Total Current Assets TOTAL ASSETS Materials Direct Labour COST OF SALES GROSS PROFIT EXPENSES: R&D Promotion Marketing Channel Support Distribution Administration Overheads Total Expenses OPERATING PROFIT Interest Payable Interest Receivable NET FINANCE COST PROFIT BEFORE TAX TAXATION PROFIT FOR YEAR 105 2670 0 930 3705 6067.5 8.3 0.0 7.3 2.3 12.2 4.1 10.0 41.7 6.5 837.5 25 1100 350 1832 613 1500 6257.5 967.5 -248 0 -248 719.5 0 719.5 CURRENT LIABILITIES Payables Bank Overdraft Accruals Tax Payable Provisions Total Current Liabilities 3058 0 0 0 0 4.8 3058 4.8 NON-CURRENT LIABILITIES Long Term Loan Total Non-Current Liabilities 1082 1082 STATEMENT OF CASH FLOWS TOTAL LIABILITIES 4140 967.5 + 500 + 525 NET ASSETS 1927.5 EQUITY Share Capital Share Premium Account Retained Profits Total Equity 120 0 1807.5 1927.5 Operating profit Add: Depreciation Add: Amortisation Change in working capital: 1. Inventory change 2. Receivables change 3. Prepayments change 4. Payables change 5. Accruals change 6. Provisions change Total change in working capital Cash generated from operations Interest received Interest paid Tax paid Net cash flow from operations +4771 -909 0 -2491 0 0 +1371 +3363.5 0 -248 0 +3115.5 Purchase of PP&E Purchase of intangible assets Net cash flow from investing 500 -937.5 -1437.5 Proceeds from share issue Draw down (repayment) of loan Dividend paid Net cash flow from financing Net cash flow for the year + 0 + 432 - 180 252 +1930 PRODUCTION CUSTOMER & CONSUMER Product Quality Consumer Satisfaction 5 7 Available Capacity (units) Capacity Used (units) Capacity Utiln (%) Unit stock (0) Unit stock (11) Materials Purchased / Unit (0) Materials Purchased / Unit (11) NA 17500 NA 611 0 85.5 NA Brand Image Brand Awareness (%) Public Image 5 22 8 PEOPLE DEMAND Staff Morale Staff Skills Staff Turnover (%) Rand D People Brand Management Staff Business Admin. Staff Production People Primary Channel Support Staff 45420 0 0 0 8 8 4 100 20 40 0 20 Unit Sales (1) Unit Sales (1) Lost Sales (0) Lost Sales (11) PRIMARY CHANNEL CONTRIBUTION Sales Turnover COGS Distribution Support Staff Channel Support Contribution Volume Channel Partner Satisfaction 14989 7764 1832 250 100 5043 45420 8 R&D projects completed:1, 5, 6, 13, MESSAGES A green tax' of 20% is being levied on all drinks that do not use re-cyclable packaging Retailers promote the benefits of square packaging MARKET SUMMARY Team 1 Team 2 Team 3 Team 4 Team 5 Price (W$) Price II (W$) Market Share (%) Unit Volume (0) Unit Volume (11) Consumer Satisfaction Product Quality 0.51 0 16.0 25446 0 0.6 0 12.0 18962 0 0.45 0 21.0 33716 0 0.472 0 23.0 36471 0 0.44 0 28.0 45420 0 7 6 5 6 6 7 6 8 10 7 5 Staff Morale Wages/Salaries (W$) 5 10.5 4 10 6 12 7 11 8 12.5 Sales Turnover $000) P.B.T. (W$000) Net Cash Flow (W$000) Net Assets (W$000) 11733 1426 -313 4017 10533 387 0 1479 13379 1526 -968 4603 14911 524.5 772 2374 14989 719.5 1930 1927.5