Word Count: 3000max QUESTION 1 (200 marks)a)Discuss the factors that must be taken into account when providing a context for analysing the financial performance of a business. (15 marks) b)The following are extracts from the 2019 published financial statements of City-Hotels Group Plc. an international hotel and leisure company. City-Hotel Group Plc.Consolidated Income Statement for year ended 31 December 201920192018000000Revenue112 20093 400Cost of sales(51 300)(44 700)Gross profit60 90048 700Selling and administrative expenses(25 400)(21 500)Depreciation and amortisation(6 400)(5 600)Operating profit29 10021 600Loan interest(8 400)(5 400)Profit before tax20 70016 200Corporation tax(2 500)(1 800)Profit for the year18 20014 400Dividends paid (7 600) (5 400)City-Hotels Group Plc.Consolidated Balance Sheet at 31 December 201920192018000000ASSETSNon-current assetsProperty plant & equipment (net book value)301 300240 600Intangible assets17 50010 400318 800251 000Current assetsInventories2 9002 400Accounts receivable5 6004 900Prepayments4 4004 100Cash and Bank9 8007 80022 70019 200Total assets341 500270 200EQUITYIssued share capital (note 1)7 2006 500Share premium39 10017 700Revaluation reserve84 50084 500Other reserves2 6002 200Retained earnings47 50036 900180 900147 800LIABILITIESNon-current liabilitiesLoans and borrowings130 90096 700Current liabilitiesTrade payables5 7004 400Accrued expenses9 2008 900Bank overdrafts2 7002 600Short term loans and borrowings10 7008 700Corporation tax liabilities1 4001 10029 70025 700Total Liabilities160 600122 400Total equity and liabilities341 500270 200Additional Information note 1:Nominal (par) value per share in cent25c25cMarket price / share year-end cents930c750cRequired:(a)Calculate for each year 18 ratios under the headings of profitability Use of assets capital structure liquidity and investment (60 marks)(b)(c) (b) Based on (a) comment on the companys performance and position over the two years (70 marks)(c)Apply the Taffler & Tisshaw model of business failure prediction and calculate a z-score for the business for both 2019 and 2018 (20 marks)(d)Comment on your answers to (c) (10 marks)(e)Accounting statements are often accused of presenting a limited picture of a business.In the context of this statement discuss the limitations of ratio analysis. (25 marks) QUESTION 2 (200 Marks): The relevant literature debates how the entrepreneurial process occurs. Shanes (2003) Individual Opportunity Nexus suggests a model to illustrate the entrepreneurial journey. Discuss this model in detail and include a minimum of 15 references. This discussion should include a debate with alternative perspectives on the entrepreneurial process.CriteriaPossible MarksHousekeeping10Introduction10Detailed discussion of Individual Opportunity Nexus60Quality of supporting sources applied in the discussion30Quality of discussion and debate of the literature50Conclusions from the review of the literature40Total200
