Business Game Financial Report

FINANCIAL REPORT.

A MESSAGE FROM FINANCE DIRECTOR

“The last three years have been a challenging period and it represented a very successful time for our investors with the share price keeps increasing persistently and return on capital employed. We would not have succeeded unless a precise business plan had been prepared”.

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The graph above shows an accurate Ace’s share price

• Share price was stable during the last three years.

• Share price increased sharply for the whole three years. According to the trend, we can expect it is going to rise in the future.

Below is a graph represented Ace’s profit for the last three years.

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• As we can see net profit is quite fluctuated, it can be explained by the change in sales and cost of sales.

• The firm had done well as we already cover the loss in first quarter of first operating year.

Below is a graph shows an accurate gross margin

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• First year seems to be our best successful full as the gross margin reached 38%.

• Again the gross margin is fluctuated. We had not done well in 2012 as the gross margin decreased significantly to 30% because of a rapid increase in cost of sales.

Overview

The firm had done well in first year and second year. In year three, inflation rate increased pretty fast following by the cost of sales. Nevertheless, the firm still covered all the cost and make a large amount of profit every year. We also scheduled a plan to reduce the cost of sales and increase sale volume.

Year 1.

We understand that the world had experienced an economic recession in 2009, therefore we did not expect to have high turnover. With gearing ratio of 60%, we depended dramatically on loan, exhibiting high level of risk. However, the company performed well as we produced and sold nearly 125000 cars. According, turnover was nearly two billion and we...