HRM 11416 Assignment B: Balance Sheet as at 31 October 2016

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1. Return on capital employed (%) 2. Gross profit (%)3. Operating profit (%)4. Profit for the year (%)5. Current ratio6.Inventory days7. Trade Receivables collection period (days)8. Trade Payables payment period (days)9. Gearing ratio (%)10.Interest cover (times)
(15% Weighting)
(b) Using the ratios calculated in part (a) prepare a report for the investor providing analysis of the performance and position of Andrew and Charlotte. Your answer should suggest reasons for any difference in performance.(30% Weighting)
(c) Discuss what further information might be useful to the potential investor before they decide in which company to invest.(20% Weighting)
(d) It has been rumoured that Charlotte is planning an expansion of their production facilities which will cost £2.5million.  Discuss two techniques the management of Charlotte could use to help decide whether they should go ahead with the project or not. Your answer should evaluate the advantages and limitations of each method.