Business Performance Analysis of T-shirts Ltd

Statement of Profit or Loss

 T shirts Ltd

You are a finance trainee for a company of Vests plc and have been asked by your marketing manager to review the business of your key competitor T-shirts plc and to assist her with helping the marketing team understand financial information.

You know that T-shirts plc is struggling in the current economic climate and that other expenses have risen as a result of an aggressive advertising campaign to stimulate sales.

The rate of interest on the bank overdraft in 2019 is significantly higher than the rate of interest on the loan.

1.2. Task

Business report with a title page, contents page and clear structure. It must be written in an appropriate business tone with appropriate Harvard reference where necessary. Note no introduction is required. No marks will be awarded for an introduction.

Part 1: Business Performance Analysis:

To support your analysis for this part you will need to calculate and use appropriate ratios using the course definitions. You need to show all ratio calculations workings which should be placed in the appendices to your report.

Statement of Profit or Loss

Analyse and comment on the financial performance of T-shirts Ltd using the case study information and exhibit 1. Your analysis should critically evaluate all the lines of the Statement of Profit or Loss.

Statement of Financial Position

Analyse and comment on the financial position of T-shirts Ltd using the case study information and exhibit 1. Your analysis should critically evaluate all the lines of the Statement of Financial Position.

Understanding Financial Information & Management of Cash:

Explain the concept of accrual accounting versus cash accounting, including the benefits and any limitations of each, with examples from this case study where relevant.

What is meant by Profit and Cash flow and how they are different.

Budget techniques and Company Finance:

Define Budget and explain purposes of preparing a budget.

What might be the main benefits of forming a limited company and listing it on a stock exchange.

The word limit of 2,500 words excludes numerical tables, bibliography and appendices.

To assist you with this task you have been supplied with the following information:

Assessment Submission Structure

Business Performance Analysis

Statement of Profit or Loss

Statement of Financial Position

Understanding Financial Information & Management of cash

Accruals vs cash accounting

Profit vs Cash flows

Budget and Company Finance

Meaning and Purposes of Budget

Benefits of forming a limited company and getting it registered on a stock exchange