Question 2
Analyse two methods to improve IPA's liquidity.

Practise advanced Finance through published accounts, ratios, investment appraisal and financial strategy, combining calculations with qualitative evidence for business decisions.
Analyse two methods to improve IPA's liquidity.
Advise Idir on what accounting data he should use to help him develop a new business strategy for PI to sell pet insurance.
[20]
Using the data in Table 1.2, calculate the payback period of the country C location.
Using the data in Table 1.3, calculate the accounting rate of return (ARR) of the country D location.
Evaluate which location KTJ should choose for its new factory.
Using the data in Table 1.1, calculate the payback period.
Using the data in Table 1.1, calculate the net present value (NPV) over six years discounted at 8%.
Evaluate LBM's decision to go ahead with the hot water mine.
Using the data in Table 1.2, calculate the operating profit margin for WCP in 2025.
Using the data in Table 1.3, calculate the payback period for PPP's proposed new machine.
Using the data in Table 1.3, calculate the accounting rate of return (ARR) for PPP's proposed new machine.
Evaluate whether PPP should invest in the new machine.
Refer to Table 1.1. Calculate the acid test ratio.
Refer to Table 1.1. Calculate the trade receivables turnover (days).
Evaluate methods TC could use to improve liquidity.
Refer to Appendix 1. Calculate CQ's rate of inventory turnover.
Using the data in Table 1.2, calculate the dividend cover for 2024.
Evaluate whether PAIR should increase dividends to shareholders in 2025.
Refer to Table 1.2. Calculate for 2023-24, the operating profit margin.
Evaluate methods HCC could use to increase profitability.