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Hello,
Firstly, thanks for the lectures!
And i got question during revising the Kaplan revision kitThe question name is ‘One Energy’
The question requires assessing why report indicates clear signs of ritesoftware in difficulty where the firm provides software to one energy.
This analysis shoule be done by using financial information.The part of answer shows although the sales revenue increased by 10% in the period, COGS grew by a greater percentage. The increased COGS could be caused from labour costs in acquisition. The percentage increase in staff was almost almost 30%.
Here the question is
1.
i calculated Each of Increased percentage of Revenue and cogs is about same.Revenue
2350 to 2650
cogs
(2300) to (2600)So revenue increased by 12.67%
(2650-2350) / 2350= 12.67%Cogs increased by 13.04%
(2600-2300) / 2300= 13.04%2. I am not sure how to calculate the percentage increase in staff was almost 30% as written in answer.( the question does not say percentage increase as 30%)
Really appreciate for help.
Thank you!Staff increased from 70 to 90 so 20/70 is about 30%.
The question asked you to assess if the view that the company was in imminent financial difficulty was reasonable. I’m not sure that it was obvious.
As you say sales and cos have increased about the same amount and, although profits have fallen they are still 9.
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