The SpotLight

  KT partners, a Hong Kong-based small private equity firm, are considering investing in JL Foods plc. However, in light of recent global socio-political developments, the firm is concerned about the investment's suitability and has solicited your services as an advisor. Your opinion needs to be provided in the form of a report,  limited to 1000 words,  and addressed to Ben Burns, the CEO of KT partners. It should analyze the above financial statements using the various ratios introduced in the module and other necessary research. The proportions need to be presented as a table, as part of the appendices and do not count toward the word limit.  (60 marks) Your colleague is very dismissive of your analysis and argues that profits/losses are nothing more than the construction of an accountant. They are based on what the accountant can and chooses to measure and should not, therefore, be the basis for judging a company. Write a note in  no more than 500 words ...

1) R & B Beverage offers a drink product with a near-constant demand of 3600 cases annually. It cost $20 to place each order, and the cost of each storing one case is $0.75 per year. (a)Construct a graph of order cost, storage cost, and total cost (for order quantities up to 600 cases). Graph of Cost Versus Quantity (b)Estimate from your graph the economic order quantity (EOQ). From the graph, EOQ is 600 cases. This is obtained where the curve of the storage cost meets the curve of the order cost. (2) The annual demand for a product is 1500 units. Each unit costs $2.50. An order costs $20 to set up, and the annual stock holding cost is $0.50 per unit per year. (a)Determine the economic order quantity.  Q=(2DS/H)1/2 ((2 X 1500 units X $20)/$0.50)1/2=346.4 units  (b)What is the total cost of the optimum policy?  TC=PD + K(D/EOQ) + h(EOQ/2) (1500X$2.50+$20(1500/346.4)+$0.50(346.4/2) =$3,923.21 (3) Th...