IB Business Management Topic 3.4 Final Accounts…

Loading subject…

Item	Amount (€000)
Non-current assets (at cost)	2,000
Accumulated depreciation	(800)
Current assets	1,100
Current liabilities	750
Long-term borrowings	600
Share capital	700
Retained earnings	—

IB Business Management Topic 3.4 Final Accounts… | RevisionDojo

BeanBar Ltd.

BeanBar Ltd. is a medium-sized company that sells gourmet coffee beans online and in retail stores. The business recently launched a new premium coffee blend and carried out primary market research to better understand customer preferences before the launch. The findings helped inform the company's updated marketing plan, which included promotional discounts and revised packaging.

Although initial sales were strong, the marketing manager is concerned that poor internal communication between the finance and sales teams may be affecting financial performance. The finance team has noted rising costs, while the operations team wants to reinvest in product development.

Table 1 shows selected financial data for the past two months.

Table 1: Selected financial data for BeanBar Ltd. for 2024

Item	Month 1 ($)	Month 2 ($)
Revenue	100,000	90,000
Cost of sales	40,000	42,000
Expenses	30,000	35,000
Net profit	?	?
Current assets	60,000	50,000
Current liabilities	30,000	40,000

BiteFresh Ltd.

BiteFresh Ltd. is a company that produces ready-made healthy meals for supermarkets and gyms. Due to growing demand, the business is planning to open a second production facility. Management is deciding between two locations: one in an urban area with higher rent but closer to suppliers and customers, and another in a rural area with lower operating costs but limited infrastructure.

The finance team has produced updated financial data to help evaluate the company's performance and support the location decision.

Table 1: Financial data for BiteFresh Ltd.

Item	Amount ($)
Revenue	400,000
Cost of sales	220,000
Expenses	130,000
Fixed costs (per month)	12,000
Selling price per unit	10
Variable cost per unit	4
Current assets	70,000
Current liabilities	35,000

PureGlow Ltd.

PureGlow Ltd. is a skincare company that sells natural, plant-based beauty products. To support the launch of a new product line, the business used a mix of internal and external sources of finance. It relied on retained profit from previous years and also secured funding from a venture capital firm interested in ethical consumer brands.

The new product range was supported by a marketing plan focused on the premium segment. As part of the plan, PureGlow adjusted elements of its marketing mix, including packaging design and pricing. The company aims to increase market share and improve profit margins in a highly competitive industry.

Table 1 shows selected financial data for the first month after the launch.

Table 1: Financial data for PureGlow Ltd. (Month 1)

Item	Amount ($)
Revenue	140,000
Cost of sales	60,000
Expenses	50,000
Net profit	?

VerdeLeaf

VerdeLeaf is a worker co-operative that produces compostable packaging for small food businesses. All employees are members who share in profits and help make decisions. As the business grew, VerdeLeaf introduced a more formal functional organisational structure, which has created friction between departments.

The business’s original objective was to remain local and values-driven, but it has recently started supplying national chains. While some members support this shift, others worry it goes against VerdeLeaf’s founding purpose. Recent feedback suggests rising demotivation in the production team, especially due to poor communication across departments and inconsistent involvement in decision-making.

The finance team has provided partial data for Q1 2024 and tasked a trainee to complete the statement of profit or loss.

Table 1: Financial data for VerdeLeaf – Q1 2024

Item	Amount ($)
Units sold	4,000
Selling price per unit	6.50
Variable cost per unit	2.10
Salaries (production + sales)	38,000
Marketing and promotion	14,000
Office rent and overheads	16,000
Tax rate	25%
Dividends paid to members	12,000

Figure 1: Statement of profit or loss (partially completed)

VerdeLeaf Statement of profit or loss
for the quarter ended 31 March 2024

Sales revenue	10,200
Cost of sales	6,300
Gross profit	3,900
Operating expenses	2,400
Depreciation expense	400
Interest	150
Profit before tax	—
Tax	150
Profit for the year	—

Sales revenue	__________
Cost of sales	__________
Gross profit	__________
Expenses:
- Salaries	(38,000)
- Marketing and promotion	(14,000)
- Office rent and overheads	(16,000)
Profit before tax	__________
Tax (25%)	__________
Profit for period	__________
Dividends	(12,000)
Retained profit	__________

IB Business Management 3.4 Final Accounts Questionbank

IB Business Management 3.4 Final Accounts Questionbank

IB Business Management 3.4 Final Accounts Questionbank

IB Business Management 3.4 Final Accounts Questionbank

IB Business Management Topic 3.4 Final Accounts Questionbank