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    This document contains a business management exam for a Grade 12 IB SL student. It includes a financial report for Dalton PLC for the period ending August 31st with revenue, costs, expenses, taxes, assets and liabilities. It asks the student to [1] construct a profit/loss account and balance sheet for Dalton PLC, [2] measure the liquidity, profitability and efficiency, and [3] comment on the results. The profit/loss account shows a net profit of $312 million and the balance sheet shows total assets of $600 million financed by $500 million in equity and $100 million in long-term debt. Liquidity is good, profitability is low, and return on capital

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    Exam

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    This document contains a business management exam for a Grade 12 IB SL student. It includes a financial report for Dalton PLC for the period ending August 31st with revenue, costs, expenses, taxes, assets and liabilities. It asks the student to [1] construct a profit/loss account and balance sheet for Dalton PLC, [2] measure the liquidity, profitability and efficiency, and [3] comment on the results. The profit/loss account shows a net profit of $312 million and the balance sheet shows total assets of $600 million financed by $500 million in equity and $100 million in long-term debt. Liquidity is good, profitability is low, and return on capital

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    This document contains a business management exam for a Grade 12 IB SL student. It includes a financial report for Dalton PLC for the period ending August 31st with revenue, costs, expenses, taxes, assets and liabilities. It asks the student to [1] construct a profit/loss account and balance sheet for Dalton PLC, [2] measure the liquidity, profitability and efficiency, and [3] comment on the results. The profit/loss account shows a net profit of $312 million and the balance sheet shows total assets of $600 million financed by $500 million in equity and $100 million in long-term debt. Liquidity is good, profitability is low, and return on capital

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    29 views4 pages

    Exam

    Uploaded by

    mohammad maabreh
    This document contains a business management exam for a Grade 12 IB SL student. It includes a financial report for Dalton PLC for the period ending August 31st with revenue, costs, expenses, taxes, assets and liabilities. It asks the student to [1] construct a profit/loss account and balance sheet for Dalton PLC, [2] measure the liquidity, profitability and efficiency, and [3] comment on the results. The profit/loss account shows a net profit of $312 million and the balance sheet shows total assets of $600 million financed by $500 million in equity and $100 million in long-term debt. Liquidity is good, profitability is low, and return on capital

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    of 4

    Amman National School

    Business management Exam

    Name: Date: Oct. 20th 2020

    Grade: 12 IB SL Total Mark: / 20

    Teacher: Leen Arabi Katbi

    Question 1: Dalton PLC.

    Below is an extract of this year's financial data for Dalton Plc. For the period ended
    August 31st.

    $m
    Sales revenue 1,800
    Cost of sales 690
    Expenses 720
    Corporation tax 78
    Land & buildings 70
    Machinery and fixtures 180
    Vehicles 50
    Stocks 150
    Debtors 650
    Cash 100
    Current liabilities 600
    Share capital 400
    Debentures 100
    Retained profit 100
    a. Construct a profit/loss account for Dalton Plc.

    Profit & loss account for Dalton PLc, for the period august 31st.

    $m
    Sales revenue 1800
    Cost of sales 690
    Gross profit 1110

    Less Expenses 720


    Net profit before tax 390

    Less cooperate tax 78

    Net profit after tax 312

    [4]
    b. Construct a balance sheet for Dalton Plc.

    Fixed assets
    Land and building 70
    Vehicles 50
    Machinery 180
    300
    Current assets
    Stocks 150
    Debtors 650
    cash 100
    900
    Current liabilities
    600
    Net assests 300
    Total assets 600
    Long term liability (debt) 100

    Net assests 500


    Financed by:
    Share capital 400
    Retained profit 100
    Equity 500
    c. (i) Measure the liquidity, profitability and efficiency for Dalton Plc.

    Profitability:

    GPM: 1110/1800 x 100 = 62%

    NPT: 390/1800x 100 = 22%

    Liquidity:

    Current ratio:900/600 = 1.5

    Efficiency:

    ROCE 312/500 = 62.4%

    [4]

    (ii) Comment on the results from (i). [6]

    The GPM of the business is fairly high as for each 100$ od sales, 62$ is gross profit
    which means it will make it easier for the business to pay its expenses. However the
    NPM is fairly low therefore showing the firms profitability being low.

    The liquidity ratio is fairly good as its number as its in the safety margin for the firm.

    Good Luck 

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