Calculator Allowed: Yes



Transcription of this question: 2.ThaiModaThaiModa is a Thailand-based manufacturing company that produces:Office furniture• residential furniture• furniture specifically designed for elderly people selling under the brand name Of”ThaiModa Health and Care” (“TMHC”).Selected items from ThaiM0daS profit and loss account for the year ended 31 May 2009 (in millionsofThai baht)Sales revenueCost of goods soldGross fitEx ensesNet profit before interest and taxInterestTaxNet fit after interest and tax262815371091695396687303Selected items from ThaiM0da balance sheet as at 31 May 2009 (in millions of Thai baht)Capital employedCashCreditorsDebtorsFixed assetsNet assetsRetained rofitShare ca italShort-term borrowingStockTotal current liabilitiesTotal current assets2458243x479155513081150351781600ThaiM0da has 4 production sites and 10 distribution centres in Thailand. Its products are sold in bothdomestic and overseas markets. ThaiM0da also sells furniture imported from Italy under the brandname ‘ ‘Casaperfetta”In 2002 ThaiM0da established a strategic alliance with Sleek Textiles, a manufacturer Ofluxury fabrics. Both companies agreed to sell each other’s products in their showrooms andshare their design resources in Thailand. ThaiModa also uses Sleek Textiles ‘ extensive internationalsales network, primarily in Austria, Australia, Germany and Malaysia.In addition to the existing strategic alliance, ThaiModa is now considering a joint venture withSleek Textiles focusing on the development of new antibacterial fabrics. “TMHC” is particularlyinterested in using these new antibacterial fabrics in their furniture for elderly people.In 2010, ThaiModa reported a revenue of 30 million Thai baht from “TMHC”_ Future sales revenueis forecasted to grow rapidly. Sales are mainly to hospitals and hospices. In an aging society,there is potential for growth in the market for furniture for elderly people.(a)(b)(d)With reference to ThaiModa and Sleek Textiles, outline two differencesbetween a strategic alliance and a joint venture.Calculate the missing figures X, Y, Z and with those figures and from thefinancial information provided, construct a complete balance sheet forThüi,Woda for 2009.(i)(ii)(iii)Calculate the acid test (quick) ratio of ThaiModa_Calculate the current ratio of ThaiModa_Using these ratios, briefly comment on the liquidity position ofThüiModa_Examine one possible advantage and one possible disadvantage for ThaiModaof the joint venture with Sleek Textiles.[7 ma*s][1 mark][1 mark][2 marks][5 marks]

Leave a Reply