Question 1 Box Limited produces bottled water. The Board of the Company met recently to discuss. how to boost it's profitability and market share. The Financial results of Box limited and the Industry leader Stone limited are as follows: Operating Statements for the year ended 31 December, 2020 Box Ltd Revenue Variable costs Other costs Net Profit Non-Current Assets: Freehold land and buildings Plant and equipment Motor vehicles Fixtures and fittings Summarised Statement of Financial Position as at 31 December, 2020. Box Ltd £'000 Current Assets /Current Liabilities: Receivables Cash Inventory Payables £'000 2800 1750 500 550 Finance By: Ordinary share capital Reserves Non-current liabilities 900 780 650 250 2580 200 100 200 (300) 200 2780 Stone Ltd £'000 4715 2550 900 1265 2000 280 500 2780 Stone Ltd £'000 2050 900 800 350 4100 300 250 150 (250) 450 4550 2000 350 2200 4550

Cornerstones of Financial Accounting
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Chapter7: Operating Assets
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Problem 81.1C: Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear Refer to the 10-K reports of...
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1.Compare and analyse the performance of the two companies based on their profit margin, asset turnover, ROCE, and debt equity ratio and explain what the board of Box Limited needs to do to achieve their objective . 


2. Which other non-financial measures can influence the decision of the board of Box Limited?

Question 1
Box Limited produces bottled water. The Board of the Company met recently to discuss
how to boost it's profitability and market share. The Financial results of Box limited and the
Industry leader Stone limited are as follows:
Operating Statements for the year ended 31 December, 2020
Box Ltd
Revenue
Variable costs
Other costs
Net Profit
Non-Current Assets:
Freehold land and buildings
Plant and equipment
Motor vehicles
Fixtures and fittings
Current Assets /Current Liabilities:
Receivables
Summarised Statement of Financial Position as at 31 December, 2020.
Box Ltd
£'000
900
780
650
250
2580
Cash
Inventory
Payables
£'000
2800
1750
500
550
Finance By:
Ordinary share capital
Reserves
Non-current liabilities
200
100
200
(300)
200
2780
Stone Ltd
£'000
4715
2550
2000
280
500
2780
900
1265
Stone Ltd
£'000
2050
900
800
350
4100
300
250
150
(250)
450
4550
2000
350
2200
4550
Transcribed Image Text:Question 1 Box Limited produces bottled water. The Board of the Company met recently to discuss how to boost it's profitability and market share. The Financial results of Box limited and the Industry leader Stone limited are as follows: Operating Statements for the year ended 31 December, 2020 Box Ltd Revenue Variable costs Other costs Net Profit Non-Current Assets: Freehold land and buildings Plant and equipment Motor vehicles Fixtures and fittings Current Assets /Current Liabilities: Receivables Summarised Statement of Financial Position as at 31 December, 2020. Box Ltd £'000 900 780 650 250 2580 Cash Inventory Payables £'000 2800 1750 500 550 Finance By: Ordinary share capital Reserves Non-current liabilities 200 100 200 (300) 200 2780 Stone Ltd £'000 4715 2550 2000 280 500 2780 900 1265 Stone Ltd £'000 2050 900 800 350 4100 300 250 150 (250) 450 4550 2000 350 2200 4550
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