BMAN21020 FINANCIAL REPORTING AND ACCOUNTABILITY 2020
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BMAN21020
FINANCIAL REPORTING AND ACCOUNTABILITY
2020
SECTION A (COMPULSORY)
Question 1
Cora PLC is a listed and well-established supermarket chain operating through much of the UK. Its summarised financial statements for the last 3 financial years, 2017 to
2019, are below:
Cora PLC
Income Statement for the year ended 30th April
Turnover
Cost of Sales
Gross profit
Operating Expenses
Operating Profit
Interest received
Interest paid
Profit Before Tax
Tax
Profit after tax
Dividends
Retained profit for the year
Statement of Financial Position as at 30th April
Non-Current Assets
Property Machinery Investments
Current Assets
Stock Debtors Securities Cash
Total Assets
Current Liabilities
Bank overdraft Trade creditors
Net current assets
Total assets less current liabilities
Non-Current Liabilities
Long-term loan
Total net assets
Capital and reserves
Share capital (£1) Retained profit
|
2017 £m 8,103 (7,424) |
2018 £m 9,519 (8,682) |
2019 £m 10,646 (9,654) |
|||
|
679 (152) |
837 (212) |
992 (572) |
|||
|
527 84 (149) |
625 108 (180) |
420 185 (237) |
|||
|
462 (162) |
553 (201) |
368 (225) |
|||
|
300 (21) |
352 (46) |
143 (33) |
|||
|
279 |
306 |
110 |
|||
|
2017 £m |
2018 £m |
2019 £m |
|||
|
1,983 1,256 3 |
3,225 1,074 3 |
4,158 1,170 2 |
|||
|
3,242 |
4,302 |
5,330 |
|||
|
320 30 2 38 |
347 75 306 447 |
33 54 452 57 |
|||
|
390 |
1175 |
596 |
|||
|
3,632 |
5,477 |
5,926 |
|||
|
495 608 |
750 678 |
693 750 |
|||
|
1,103 |
1,428 |
1,443 |
|||
|
(713) |
(253) |
(847) |
|||
|
2,529 |
4,049 |
4,483 |
|||
|
648 |
810 |
1112 |
|||
|
1,881 |
3,239 |
3,371 |
|||
|
1,485 396 |
2,536 703 |
2,558 813 |
|||
1,881 3,239 3,371
Additional information:
1. On 15 April 2019 a fire at one of the company’s warehouses destroyed some of the stock, resulting in a damage valued at £300m. The charge for this damage was made against the operating expenses.
2. On 1 May 2019 a new CEO joined Cora PLC. On her first statement to the shareholders, she identified Mercator PLC, another supermarket chain, as the
main competitor to her company. The summarised statements for Mercator PLC for the last 3 financial years, 2017 to 2019, are below:
Mercator PLC
Income Statement for the year ended 30th April
Turnover
Cost of Sales
Gross profit
Operating Expenses
Operating Profit
Interest received
Interest paid
Profit Before Tax
Tax
Profit after tax
Dividends
Retained profit for the year
Statement of Financial Position as at 30th April
Non-Current Assets Property
Machinery Investments
Stock Debtors Securities Cash
Total Assets
Current Liabilities
Bank overdraft Trade creditors
Net current assets
Total assets less current liabilities
Non-Current Liabilities
Long-term loan
Total net assets
Capital and reserves
|
2017 £m 10,395 (9,453) |
2018 £m 11,720 (10,575) |
2019 £m 13,043 (11,738) |
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|
|||||||||||||||||||||||||||||||||||||||||||||||
|
2,108 2,509 3,962 |
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2022-05-09