The Company purchases vehicle parts such as tailgates, bumpers, headlights, electrical and mechanical components, and body panels from different importers. There are delays in getting other vehicle parts due to the worldwide shortage of plastics, other raw materials, and the movement of goods. With other contributing factors, like, the well$-$publicised driver shortages in the UK$.($The lack of sufficient semiconductors caused widespread production cuts around the globe. Worldwide, carmakers are estimated to cut a total of $19\mathrm{.}6$ million vehicles out of their production schedules between $2021$ and $2023).$ The Adam family faced various challenges during their journey, including securing financing for expansion and navigating supply chain disruptions. To mitigate the risks associated with automotive market fluctuations, Adam Cars Limited invested in technology and systems for real$-$time supply chain visibility, enabling them to detect potential disruptions early and respond proactively. To fund this expansion, the company secured a $30$ million bank loan with a fixed interest rate of $4\%$ per annum. The loan is scheduled to be repaid in December $2028.$

Financial statements for the year to $31$ December $2023$

Income statement

$2023$

$0002022$

$000$

Revenue Note $1143,450123,000$

Cost of sale Note $288,93973,800$

Gross profit $54,51149,200$

Administrative expenses Note $343,05038,500$

Operating profit $11,46110,700$

Interest charges @$4\%1,2001,200$

Profit$/$loss before tax $10,2619,500$

Taxation $2,7004,300$

Profit loss after Tax $7,5615,200$

Statement of financial position

$2023$

$`0002022$

$000$

Non$-$current assets

$41,00040,000$

Current assets $($Note $4)33,50031,800$

Total Assets $74,50071,800$

$2023$

$`0002022$

$`000$

Equity

Ordinary shares capital $8,0006,000$

Retained earnings $29,50026,000$

$37,50032,000$

Non$-$current liabilities $($Note $5)30,00030,000$

Current Liability $($Note $6)7,0009,800$

Total Assets and Liabilities $74,50071,800$

Notes to the financial statements

Note $1$: Revenue

Note $1$: Revenue $2023$

$`0002022$

$`000$

Economy $22,80018,000$

Deluxe $120,650105,000$

Total Revenue $143,450123,000$

Sales volumes

$2023$

Units $2022$

Units

Economy $1,2001,125$

Deluxe $3,1753,000$

Total sales $4,3754,125$

Note $2$: Cost of sales

$2023$

$`0002022$

$000$

Material $62,25751,660$

Production staff costs $26,68222,140$

Total cost of sale $88,93973,800$

No$.$ of production staff $890794$

Note $3$: Administrative expenses

$2023$

$`0002022$

$`000$

Director$$s salaries $900850$

Other salaries $9,0008,000$

Energy cost $13,00012,600$

Telephone $9,1008,050$

Other expenses $11,0509,000$

Total $43,05038,500$

No of directors $99$

Other employees $180178$

Note $4$: Current assets

$2023$

$`0002022$

$`000$

Inventory: Raw material $7,5007,000$

Inventory: finished goods $12,00011,800$

Trade receivables $11,50011,000$

Cash and bank $2,5002,000$

Total Assets $33,50031,8000$

Note $5$: Non$-$current liabilities

$20232022$

$`000`000$

Ten$-$year bank loan $30,00030,000$

Note $6$: Current liabilities

$20232022$

$`000`000$

Trade payables $1,9003,200$

Corporate tax liability $2,7004,300$

Other payables $2,4002,300$

Total Liabilities and equity $7,0009,800$

Required

Performance review

Using the financial statements outlined in the case study, and other information available, provide an analysis of the company$$s revenue growth, gross profit, operating profit and non$-$ financial performance for the year to $31$ December $2023,$ in comparison with the previous year.

Financial position

Using the financial statements outlined in the case study, and other information available, provide an analysis of the company$$s liquidity, working capital management and capital structure at the $31$ December $2023,$ in comparison with the previous year.