7bus2041 using financial data
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7BUS2041 Using Financial Data
Erica’s suggestion has been accepted and you have been employed as chief finance officer in Gentry Electronics. You have now been tasked to use the following financial data in evaluating the current situation with the company and make suggestions on the organisational strategies which will enable the creation and maintenance of value for Gentry. Your response should be presented in the form of a report covering the five questions below as sections of the report.
Data (£millions) | 2021 | 2020 | 2019 | 2018 |
---|---|---|---|---|
Inventory: | ||||
Raw Materials | 242 | 198 | 155 | 128 |
Work in progress | 116 | 77 | 49 | 33 |
Finished goods | 567 | 482 | 398 | 257 |
Total inventory | 925 | 757 | 602 | 418 |
Current assets | 1800 | 1423 | 1183 | 841 |
Total Assets | 2643 | 2523 | 2408 | 2090 |
Current Liabilities | 600 | 590 | 525 | 420 |
Sales | 9428 | 8674 | 7536 | 6840 |
Cost of goods sold | 6,328 | 5,474 | 4,445 | 3,557 |
Net profit | 754 | 987 | 979 | 958 |
Compute the current ratio, gross profit ratio, net profit margin ratio, inventory turnover days and Quick/Acid test for the four years.
(20marks)
Discuss two possible concerns Erica Harding and the management of Gentry Electronics will possibly raise regarding your suggestions in (c) above and offer two alternative sources of finance for Gentry?
Note: Please keep your ratio calculations as an appendix to the report. Use only the information in the main report
Submission requirements:
This is an individual assignment and the report submitted should be entirely your own
work.
You should present your evaluation of this case as a report clearly having an introduction, good/ clear sectioning, and conclusion. Please use the questions as a guide to the sections. Please use the module embedded academic English support on writing reports.
Please see the assignment section of the module Canvas website for further information on the requirements of the assignment and advice on how to put your report together.
Academic English for Business support is available through daily drop-ins from the CASE office. See the CASE workshop timetable on the CASE main website page for details.
Make full use of Library search to identify relevant academic material and the ‘Subject Toolkit for Business’ which contains links to other Information Databases and the Information Management contact details. (http://www.studynet1.herts.ac.uk/ptl/common/LIS.nsf/lis/4DAF5390094771C2802575ED004212BF)