Section B:

$1)$ Analyse the performance of the operations using RONA $=$ Po x A

$2)$ Analyse the performance of the business from a shareholders perspective using

ROE $=$ Pa x A x L

$3)$ Analyse the effect buying Mind$-$Muscle will have on Edutoys$$ profitability

$4)$ What effect will the purchase have on FA turnover? and comment on Nicci$$s depreciation &

amortisation policy

$5)$ Analyse Edutoys's Capital Structure. While the purchase without using cash was certainly

clever, was it the best thing for Edutoys$$s gearing?

$6)$ Consider the case and offer any additional advice that may help Nicci plan for the future and

maximise the business's potential.