Acc11416 building high performance organisations assignment


Building High Performance Organisations Assignment

An investor is considering the purchase of shares in either Wallace or Gromit. Both companies are in the same business sector and their accounts attached:

REQUIRED:

(a) Calculate the following six ratios for both companies, clearly showing the ratio formula and figures used: -

(i) Current ratio

(ii) Quick ratio (acid test ratio)

(iii) Receivables collection period

(iv) Return on capital employed

(v) Gross profit percentage

(vi) Net profit percentage

(b) Using the ratios calculated in part (a) prepare a report for the investor providing comments on the performance and position of Wallace and Gromit.

(c) Suggest what further information might be useful to the potential investor before they decide in which company to invest.

(d) It has been rumoured that Gromit is planning an expansion of their production facilities which will cost £2.5million. Discuss how this might be financed and any problems associated with the methods you have chosen.

Attachment:- Assignment File.rar

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Acc11416 building high performance organisations assignment
Reference No:- TGS02245353

Now Priced at $65 (50% Discount)

Recommended (91%)

Rated (4.3/5)