Schedule of Work
(i) Introduce the company to the reader. It is expected that this will include some company
history, the principal activity of the company, products, markets and key financial results.
(20 marks……approximately 300 words)
(ii) Using the annual report and accounts, calculate the percentage movement on the
following figures. You should include the following table in your assignment.
(iii) Calculate, for BOTH the current and the previous year, the following ratios that help
to highlight the companys performance for the trading period. Show definitions and
workings:
Current ratio
Operating profit margin
Trade receivables collection period
Gearing ratio
Return on capital employed
(10 marks)
(iv) Your best friend is thinking of buying 5,000 shares in the company under examination.
Write a report to them analysing the performance of your company over the last trading
period. You will be expected to make use of all relevant percentage movements and
financial ratios, NOT just the ones you may have calculated above.
You should conclude the report with your advice on whether or not you think your friend
should make the investment.
(50 marks….approximately 1200 words)
