The AT pl is a company specializing in provision of accountancy tuition courses in the private sector. It makes up its accounts to 30 November each year. In the year ending 30 November 20x7, it held 60% of market share. However, over the last 12 months, the accountancy tuitions market is general has faced 20% decline in demand for accountancy training leading to smaller dass sizes on courses. In 20x7 and before, AT pic suffered from an ongoing problem with staff retention, which had a knock-on effect on the quality of service provided to students. Following the completion of developments that have been ongoing for some time. In 20x8, the company was able to offer a far-improved service to students. The developments included: A new dedicated 24 hours student helpline. An interaction website providing instant support to students. A new training programme for staff. An electronic student enrolment system. . An electronic marking system for the marking of students' progress tests. The costs of marking electronically were expected to be $4,000,000 less in 20x8 than marking on paper, Marking expenditure is always included in cost of sales. Extract from the management accounts for 20x7 and 20x8 are shown below: 20x7 20x8 $'000 $'000 $'ooo $'000 Turnover 72,050 66,025 Cost of sales (52,078) (42,056) Gross profit 19,947 23.972 Indirect expenses 20x7 $'ooo s'ooo 72,050 (52,078) 20x8 $'000 s'ooo 66,025 (42,056) 23,972 19,947 Turnover Cost of sales Gross profit Indirect expenses Marketing Property Staff training Interactive website running costs Students helpline running costs Enrolment costs Total indirect expenses Net operating income 3,291 6,702 1,287 4,678 6,690 3.396 3,270 2,872 960 5,032 (16,312) 3,635 (21,866) 2,106 Due to the nature of the business, non-financial performance indicators are also used to assess performance, as detailed below. 20x8 Fox 8% 20% 297 100 of students transferring to AT pk from another training provider Number of late enrolments due to staff error % of students passing exams first time Labor turnover Number of students complaints 88% 48% 32% 315 10% 84 Page 5 of 13 DUAL DEGREE PROGRAMME Average no. of employees 1,080 1,081 a) Calculate financial indicators using the Information given above b) Assess the financial performance of AT plc using indicators calculated in question a). c) Analyse the non-financial performance of AT ple's business. The AT pl is a company specializing in provision of accountancy tuition courses in the private sector. It makes up its accounts to 30 November each year. In the year ending 30 November 20x7, it held 60% of market share. However, over the last 12 months, the accountancy tuitions market is general has faced 20% decline in demand for accountancy training leading to smaller dass sizes on courses. In 20x7 and before, AT pic suffered from an ongoing problem with staff retention, which had a knock-on effect on the quality of service provided to students. Following the completion of developments that have been ongoing for some time. In 20x8, the company was able to offer a far-improved service to students. The developments included: A new dedicated 24 hours student helpline. An interaction website providing instant support to students. A new training programme for staff. An electronic student enrolment system. . An electronic marking system for the marking of students' progress tests. The costs of marking electronically were expected to be $4,000,000 less in 20x8 than marking on paper, Marking expenditure is always included in cost of sales. Extract from the management accounts for 20x7 and 20x8 are shown below: 20x7 20x8 $'000 $'000 $'ooo $'000 Turnover 72,050 66,025 Cost of sales (52,078) (42,056) Gross profit 19,947 23.972 Indirect expenses 20x7 $'ooo s'ooo 72,050 (52,078) 20x8 $'000 s'ooo 66,025 (42,056) 23,972 19,947 Turnover Cost of sales Gross profit Indirect expenses Marketing Property Staff training Interactive website running costs Students helpline running costs Enrolment costs Total indirect expenses Net operating income 3,291 6,702 1,287 4,678 6,690 3.396 3,270 2,872 960 5,032 (16,312) 3,635 (21,866) 2,106 Due to the nature of the business, non-financial performance indicators are also used to assess performance, as detailed below. 20x8 Fox 8% 20% 297 100 of students transferring to AT pk from another training provider Number of late enrolments due to staff error % of students passing exams first time Labor turnover Number of students complaints 88% 48% 32% 315 10% 84 Page 5 of 13 DUAL DEGREE PROGRAMME Average no. of employees 1,080 1,081 a) Calculate financial indicators using the Information given above b) Assess the financial performance of AT plc using indicators calculated in question a). c) Analyse the non-financial performance of AT ple's business
