Financial statements and ratio analysis

Explain one benefit to Tom Pellereau of using a business angel as a source of finance.

Using the data in Extract B, calculate the acid test ratio for Stylideas Ltd in 2024 to 2 decimal places. You are advised to show your working.

Assess whether Stylideas Ltd’s distinctive capability of innovation is the main reason for its success.

Assess the likely effects on Stylideas Ltd of changes in the UK business cycle.

As Stylideas Ltd grows, Tom Pellereau is considering whether to change its current role culture to a power culture to maintain the business’ success.

Evaluate these two options and recommend which one Tom Pellereau should choose to maintain the business’ success.

Explain one benefit to Vidsy of having a mission statement.

Using the data in Extract B, calculate Vidsy’s return on capital employed (ROCE) for 2021. State your answer to two decimal places. You are advised to show your working.

Assess whether Vidsy’s directors should focus purely on shareholder returns in the company’s business decisions.

Assess whether offering financial rewards is the best way for Vidsy to reduce its labour turnover.

Vidsy’s directors wish to expand into the US market. To achieve this, the directors are considering whether to finance this expansion either by using retained profit or external finance.

Evaluate these two options and recommend which one Vidsy’s directors should choose to finance the company’s expansion into the US market.

Assess two factors that could influence the demand for new clothing sold by Jonathan Trumbull Ltd.

Assess the importance of scenario planning for Jonathan Trumbull Ltd.

Using the data in Extract F, and liquidity ratios, assess whether Jonathan Trumbull Ltd’s liquidity position has improved from 2021 to 2022.

To compete with new businesses, such as Urban Outfitters, Jonathan Trumbull Ltd is considering either improving its physical stores in Norwich or expanding its online sales.

Using the data in Extracts D to G, evaluate these two options and recommend which one will help Jonathan Trumbull Ltd compete effectively.

Using the data from Extract A, calculate the difference in the gearing ratio for easyJet plc between 2019 and 2020. You should state the difference to two decimal places. You are advised to show your working.

Explain one effect on easyJet plc of the reduced capacity utilisation of its aircraft in 2020.

Assess, with reference to Porter’s five forces, whether the ‘bargaining power of buyers’ represents the most significant external influence on easyJet plc.

Assess whether the change in price of jet fuel between November 2015 and July 2018 may have affected easyJet plc’s management of its working capital.

EasyJet plc wishes to improve its profitability. To achieve this, easyJet plc is considering either purchasing a new fleet of electric and hydrogen powered aircraft or focusing on increasing its market share of the package holiday market.

Evaluate these two options and recommend which one is more suitable for easyJet plc to improve its profitability.

Assess two ways Derby Theatre could improve its liquidity.

Assess the likely value of succession planning to Derby Theatre.

Assess the likely value to Derby Theatre of producing and staging shows that recognise the cultural diversity of Derby’s population.

Pre-theatre dining has been unpopular at Derby Theatre. Catering Consultant Andrew Dean has argued that a refurbishment of its cafe and kitchens is required.

In order to finance the £100 000 catering investment, Derby Theatre management is considering using either some of its £120 000 retained profit or a loan.

Evaluate these two methods of finance and recommend which one might be most appropriate to finance the £100 000 catering investment at Derby Theatre.

Explain how Morrisons may benefit from having a mission statement.

Using the data in Extract B, calculate the difference in Morrisons’ acid test ratio between 2014 and 2015. You are advised to show your working.

Assess the likely effects on a business, such as Morrisons, of a more competitive environment.

Assess whether the transformational leadership shown by David Potts is the main cause of Morrisons’ improved performance.

Morrisons aims to regain its market share. The two options the management are considering are either to cut prices further, or to improve its overall customer experience.

Evaluate these two options and recommend which option might be preferred by Morrisons’ shareholders.

Assess the importance of two entrepreneurial roles carried out by Peter Roberts to the success of Pure Gym.

When choosing to expand overseas, there are a number of factors that may limit the success of this strategy.

Assess the likely importance of these factors to Pure Gym’s expansion into emerging markets, such as those in Asia, South America or Africa.

Assess whether Pure Gym is likely to overcome the possible difficulties of changing LA Fitness’s culture, as a result of the takeover.

In 2016, had it not been for the Competition and Markets Authority, Pure Gym may have been able to reach its target growth by taking over The Gym Group, rather than LA Fitness.

Using the data in Extracts G and H calculate appropriate accounting ratios for The Gym Group and, using other non-financial information, evaluate these two options.

Recommend which company it would have been better for Pure Gym to take over to achieve its growth target.