The following learning outcomes (refer to module specification) will be addressed in the assignment:-

KU2 Analyse accounting data from Income Statements and Balance Sheets (Statement of financial Position) and cash Flow Forecasts and explain how the information is applied when making business decisions.

SS4 Demonstrate practical problem-solving skills by analyzing and interpreting accounting data using a range of financial ratios and recommending an appropriate course of action in response.

KES5 Demonstrate a sound grasp of the vocabulary used in accounting and finance. KES7 Demonstrate and display confidence in the use of numbers and ratios when calculating the financial position of a business.

Case Study

Gisleham Services Ltd

Gisleham Services Ltd is a medium-sized private limited company that offers services to various retail shopping centers across the United Kingdom.

You have been accepted to start your 3 weeks work experience with the company in their Accounting and Finance Department. In week 3 your Line Manager requires you to write a report analyzing and evaluating the Statements of Financial Position for Gisleham Services Ltd.

You have been given a deadline to complete the data analysis and a final report. You should present your accounting report in a professional manner, with appropriate headings, addressed to your line manager Spencer Mills.

Spencer Mills has presented you with the required final accounts data and wants you to complete the tables to develop your numerical skills. Spencer wants you to complete all your data analysis evidence using IT software and add this evidence to your report.

Task 1
Income Statement for Gisleham Services Ltd for the years ending 31.03.2021 and 31.03.2020.

Complete the Income Statement for Gisleham Services Ltd for the years ending 31.03.2021 and 31.03.2020.

Task 2
Statement of Financial Position for Gisleham Services Ltd as of 31.03.2021 and
31.03.2020.

Complete the Statement of Financial Position for Gisleham Services Ltd as at 31.03.2021 and 31.03.2020.

Task 3 – Profitability Ratios
Calculate the profit margins for Gisleham Services Ltd for the years ending 31.12 2021 and 31.03.2020 and fill in the ratio table

Task 4 – Liquidity Ratios
Calculate the liquidity for Gisleham Services Ltd as at 31.03.2021 and 31.03.2020 and fill in the ratio table.

Task 5- Efficiency Ratios
Calculate the Efficiency for Gisleham Services Ltd for the years ending 31.03.2021 and 31.03.2020 and fill in the ratio table

Task 6 – Gearing
Calculate the Gearing for Gisleham Services Ltd for the years ending 31.03.2021 and 31.03.2020.

Task 7 – The Report
Evaluate the financial performance and financial position of Gisleham Services Ltd with the use of ratios analysis and recommend factors to be considered to maintain the stable performance for the business in the future. State and explain the limitations of using ratio analysis as a decision-making tool