INSTRUCTIONS TO CANDIDATES:

 

The marks allocated are shown by each question.

All answers to be in ink and not pencil

Additional materials required: CALCULATOR

 

Answer  THREE  questions

 

Question 1       (100 marks)

 

Below are the financial accounts of Alexandria plc, a company with interests in the Tourism and Hospitality Sectors, for the years 2007 and 2008. The company has been in operation since January 2000.以下是亞歷山大PLC，一個公司，在旅游及酒店行業的利益，為2007年和2008年的財務賬目。自2000年1月該公司一直在運作。

 

Balance Sheet as at 31st March

  2007         2008                         £’000 £’000     £’000               £’000

ASSETS

Non-current Assets (net) 528,500 612,727

Current Assets:

Inventories 18,000 32,000

Trade Receivables 20,000 25,000

  Cash & Cash Equivalents   27,000 3,000                

65,000 60,000

Total Assets 593,500 672,727

EQUITY & LIABILITIES

Capital & Reserves

Called up capital of              

£1.00 per share 265,000 273,727

Accumulated Profits/ (Losses) 190,000 212,000

455,000 485,727

Minority Interest 7,500 7,500

Non-current Liabilities

10% Debentures 2020             100,000   139,500

Current Liabilities

Trade Payables 11,000 20,000

Proposed Dividend 20,000 20,000

 

31,000 40,000

Total equity & liabilities 593,500 672,727

 

Summarised Income Statement for the year ended 31st March

 

2007 2008

[£’000] [£’000]

 

Revenue 250,000 300,000

Profit from operations 40,000 52,000

Finance costs   10,000  15,000

Profit before tax 30,000 37,000

Income Tax expense   6,000     5,000

Profit after tax 24,000 32,000

Minority Interest      2,000   2,000

Net profit for the period 22,000 #p#分頁標題#e#30,000

 

Additional Information:

Credit sales (Revenue) £200,000 £235,000

Credit purchases (Trade Payables) £75,000 £85,500

Cost of sales £150,000 £180,000

 

 

Required:

 

Carry out a ratio analysis on the above statements, showing all ratios in a tabular layout.  Any supporting calculations, that you wish to show, need to be referenced to the table and shown separately. (45 marks)

 

 

Critically assess the ratios, calculated in part (a), and make recommendations to management for future action. (55 marks)

 

Question 2 (100 marks)

 

Doha is a small organisation operating within the service sector.  The data below has been produced for use in the budgetary control system.

+

 

It is estimated that 70% of sales is received on a cash basis and the remaining 30% will be received after one month.

 

20% of purchases are made in cash and the other 80% are on on two months’ credit.

 

Wages are paid monthly in cash.

 

Overheads are paid on one month’s credit.

 

On 1st January 2009 new fixed assets will be purchased costing £15,000. The company will pay £1,000 in March 2009 and the balance in May 2009.

 

The bank balance on 1st January 2009 is expected to be £1,000.

 

Stocks of materials are expected to be as follows on the dates stated:

　　　1st March 2009 £500

　　　31st May 2009 £200

　　　需要考慮下列事項：

I）據估計，70％的銷售收到現金的基礎上，剩余的30％將在一個月后收到。

　　　2）20％的采購是由現金及其他80％是上兩個月的信貸。

　　　三）工資是每月以現金支付。

　　　4）管理費用支付上一個月的信用。#p#分頁標題#e#

　　　V）于二零零五年一月2009年新增固定資產將購買成本15000英鎊。該公司將支付1000英鎊2009年3月和2009年5月的平衡。

　　　vi）該銀行2009年1月1日余額預計是千英鎊。

　　　七）材料庫存預計將如下所述日期：

　　　2009年3月1日500英鎊

　　　2009年5月31日200英

Required:

 

Prepare a cash budget for the three months to 31st May 2009. (36 marks)

 

Prepare a budgeted profit and loss account for the three months ending 31st May   2009. (24 marks)

 

“While profit, turnover and even market share are all indicators of success, if there is no cash in the bank to meet monthly bills, wages and loan payments then any business will ultimately fail.”     (CIMA 2006)

 

Discuss this statement, with particular reference to the budgeted statements prepared in parts (a) and (b) above. (40 marks)

 

 

要求：

a）編制現金預算為二零零九年五月三十一日止三個月。 （36分）

b）編制預算的損益賬二零零九年五月三十一日止三個月。 （24分）

三）“雖然利潤，營業額和市場份額都成功的指標，如果有在銀行沒有現金應付每月的賬單，工資和償還貸款，那么任何企業將最終失敗。”（CIMA，2006年）

討論此聲明，并特別提及的部分（a）和（b）項的預算編制。 （40分）Question 3      (100 marks)

 

The ‘Olympus Experience’ company operates tours to the ancient cities of Greece. The tours are fully inclusive and cover a period of fourteen nights.   Each tour can accommodate a maximum of 200 people and incurs the following costs (all costs exclude VAT unless otherwise stated):

+

Required:

 

Calculate the cost per person, distinguishing clearly between fixed and variable costs. (25 marks)

Assuming the ‘Olympus Experience’ company requires a net profit of 15%, calculate the selling price per person in order to achieve this profit. (20 marks)

Using the price calculated in part (b), calculate the profit or loss if there were confirmed bookings from only 85 people in total.#p#分頁標題#e# (20 marks)

The company has been approached by a local school who is interested in the tour due to take place in two weeks time, for a group of 10 of their students studying history. They can only afford to pay £1,200 (including VAT) per person however. The ‘Olympus Experience’ company already has 120 people booked on this tour and expects numbers to increase to 180 by the time the tour departs.

Evaluate this offer from a financial point of view and discuss any non-financial        matters that should be considered when deciding whether this offer should be accepted.

(35 marks)

a）計算每人費用，明確區分固定和可變成本。 （25分）b）假定“奧林巴斯體驗”公司要求的凈利潤的15％，每人計算的售價，以達到這個利潤。 （20分）c）利用第（二）計算的價格，計算利潤或虧損，總共只有85人，如果有被確認的預訂。 （20分）d）本公司已接近當地一所學校，誰是有興趣在游覽，由于發生在兩個星期的時間，10個為一組學生學習歷史。他們只能買得起但是支付每人1200元（含增值稅）。奧林巴斯體驗“公司已經有120人預訂這次巡演，預計數字增加至180旅行團出發時間。      評估從財務角度來看，這個提議討論決定時，應考慮是否應該接受這個提議的任何非金融事宜。

 

Question 4      (100 marks)

 

Business organisations of all sizes are funded in many different ways. Critically discuss and evaluate the factors which influence the choice of funding for businesses within the service sectors.

各種規模的企業組織在許多不同的方式資助。批判性討論和評價的影響因素選擇服務行業內企業的資金。

 

Formulae Required for Ratio Analysis Question

 

1. ROCE Profit from Operations x100

                                                Capital Employed

 

2.  Asset Turnover         Revenue

Capital Employed

 

3. Net Profit Margin   Profit from Operations x100

         #p#分頁標題#e# Revenue

 

4. Current Ratio Current Asset

                                                Current liabilities

 

5. Acid Test Ratio Current Assets- Inventories

    Current liabilities

 

6.  Inventory turnover Inventories x 365

                                          Cost of sales

 

7.  Trade Receivable days Trade Receivables x 365

                        Credit sales

 

8.  Trade payable days Trade Payables x 365

                                              Credit purchases

 

9.  Gearing                             Debt capital x 100

Total Equity

 

10. Interest cover Profit before interest and tax

                                                Interest