- 21 Marks
SCS – May 2020 – L3 – Q2 – Financial Management
Conduct a financial appraisal of Customer Focused Ltd, including key ratio calculations and commentary.
Question
Customer Focused Ltd has updated its management accounts (Exhibit 1) to produce a
forecast for the year 2020 and these have indicated some significant problems. The business
owners are unsure what to do next.
Required:
You are acting as an advisor to the company and they ask you to:
Prepare a financial appraisal of Customer Focused Ltd to identify the problems faced by the company by calculating and commenting on key ratios that you consider important for the company. You should specifically include in your appraisal an analysis of sales growth, operating margins, working capital (in terms of inventory, receivables, and payable days), and changes in cash balances over the years that the company has been operating.
Find Related Questions by Tags, levels, etc.
- Tags: Cash Balance, Financial Ratios, Operating Margins, Sales Growth, Working Capital
- Level: Level 3
- Topic: Financial management
- Series: MAY 2020