Required

a. Using the financial data provided, calculate the following ratios for the last two years of business and present your findings in a table;

Gross profit margin

Net profit margin

Return on capital employed

The current ratio

The quick ratio

Inventory turnover period

Accounts payable payment period

Gearing ratio

Earnings per share

Dividend payout ratio

b. Prepare a balanced scorecard for the business that will assist the owner-managers in delegating responsibilty for improvements while ensuring that the key aims of the business are met.

c. Demonstrate how one of the measures included in your balanced scorecard will be calculated. d. Critically analyse the potential benefits that could be derived from the use of the measures in your balanced score card, emphasising the actions which will be necessary to ensure maximum benefit of its use.

e. Critically evaluate the effectiveness of the balanced scorecard approach in alleviating the problems associated with short termism