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
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
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
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?
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