Task 2 [1000 words] Following is the extracts from the summarised financial statement of Wandy plc, a retail group, for

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Task 2 1000 Words Following Is The Extracts From The Summarised Financial Statement Of Wandy Plc A Retail Group For 1 (157.19 KiB) Viewed 42 times

Task 2 [1000 words] Following is the extracts from the summarised financial statement of Wandy plc, a retail group, for the year ended 30 June 2020, together with an extract from the chief executive's report that accompanied their issues: Statement of comprehensive income 2020 2019 £m £m £m Revenue 9,062 9,022 Cost of Sales (5,690)|5,535) Gross Profit 3,372 3,487 (2.501) (2.276) Operating expenses Operating profit Finance income 871 1,211 50 65 Finance costs (215) (147) Profit before tax 706 1,129 income tax expense (199) (308) Profit for the year 507 821 Statement of financial position 2020 2019 £m £m Non-current assets 5,868 5,979 Current assets Inventories 1,020 850 Trade receivable 45 47 Cash and cash equivalents 5 5 100 Other current assets 320 185 1,390 1,182 Total assets 7,258 7,161 Share capital and reserve 12,100 1,964 Non-current liabilities 2,851 3,208 Current liabilities Trade payable 1,410 1,250 Other current liabilities 897 739 Total share capital and liabilities 7,258 7,161 Extract from the chief executive's report: The year at a glance During the year, we acted decisively to meet the challenges of the global economic downturn due to the pandemic, taking steps to manage costs tightly and respond quickly to the changing needs of our customers. Our adjusted profits are down on last year to £507m. It is partly due to conditions on the High Street and our conscious decision to improve our value, without compromising our quality. We have built unrivalled trust in the Wandy brand over the last 125 years and will not sacrifice our core principles when times get tough. Though we have a strong emphasis on food, furniture and general merchandise, it is clothing that is our customers' biggest discretionary purchase. As the UK's leading clothing retailer with the largest market share, it was inevitable that demand would ease off as customers reined in their spending. Although value market share is marginally down from 11.0 to 10.7%, we have held our volume market share at 11.2%. We believe this is evidence that our team is in tune with our customer base. We paid a dividend of £300 million during 2020 compared to £350 million which was paid out in 2019. Question a) Based solely on the information provided above, analyse the position and performance of Wandy plc in detail. b) Use this analysis on the performance of the company to discuss whether: . A potential investor would invest in this company - Lender/ Supplier would agree to provide credit facility/goods on credit