Page 4 - CIMA MCS Workbook May 2019 - Day 1 Suggested Solutions

CIMA MAY 2019 – MANAGEMENT CASE STUDY

How does Jord attempt to …most of the costs incurred in building are covered by stage
mitigate the effects of payments made by customers before work commences so the risk
economic change on of committing resources and later being unable to recover the
customers being able to pay funds is low and restricted to the last 30% when a house is nearing
for the final product? completion (page 18)

What is the current ratio for …Current ratio 2018 (49,302 / 46.901) 1.05 : 1increased from 2017
Jord in 2018? Has this (39,322 / 41,095) 0.96 : 1 (page 20)
increased/decreased in
2018?

What is the quick ratio for …Quick ratio (49,302 ‐ 12,040) / 46,901) 0.79 : 1 increased from
Jord in 2018? Has this 2017 (39,322 – 11,853) / 41,095) 0.67 : 1(page 20)
increased/decreased in
2018?

What are the receivable …Receivables days (10,782 / 149,750 x 365)26.3 days increased
days for Jord? Have these from 2017 (10,459 / 145,258 x 365) 26.3 days (page 20)
increased/decreased in
2018?

How many new homes will … 100,000 per year for the next four years (page 21)
have to be built in Corvola
over the next four years?

How long was the delay on … the project was delivered six weeks later than planned (page 23)
the hotel project?

54 KAPLAN PUBLISHING