Download the spreadsheet that shows the Trading & Profit
and Loss Accounts for Isaiah Wines Ltd. The spreadsheet contains their
figures for sales, costs of sales and overhead expenses for three years
of trading.
Complete the accounts by replacing the question marks with
the appropriate figures.
For each year, calculate the gross and net profit margins.
The managing director was surprised to see that the year with the
highest sales figure was not the most profitable year. Put together
a presentation for him that explains what has happened to the profitability
of the business over the years. Suggest the causes of the changes in
the performance of the business.
Hold a meeting of directors to review the performance of the business
and prospects for the future. Directors present should include the managing
director along with the directors of the production, marketing and personnel
departments. Using the categories on the profit and loss accounts, discuss
the options that are available for the business and consider all of
the advantages and disadvantages of following each course of action.
