3.4 Final accounts questions for IB Business Management

Elif Kaya runs Kaya Seramik, a ceramics studio in Izmir, Turkey, that makes hand-painted tableware for hotels. She has applied to her bank for a loan to buy a second kiln. The bank has asked to see Kaya Seramik’s most recent statement of financial position before it makes a decision.

Define the term statement of financial position.

Sentul Precision Engineering Sdn Bhd makes metal components for medical devices in Kuala Lumpur, Malaysia. Table 1 shows an extract from its statement of financial position.

Table 1: Extract from the statement of financial position of Sentul Precision Engineering as at 31 December 2025 (RM000)

Using Table 1, calculate Sentul Precision Engineering’s gearing ratio (show all your working).

Hanami Noodle House

[1] Hanami Noodle House (Hanami) is a private limited company that runs six ramen restaurants in Fukuoka, Japan. It was founded in 2016 by chef Kaito Mori, who owns 80 % of the shares; his sister Yui owns the rest and manages the company’s finances. Hanami is known for its slow-cooked pork broth and for buying noodles from a small family supplier, Ono Seimen.

[2] Hanami’s latest final accounts show that profit for the year rose by 35 %, mostly because two new restaurants were busy from their first week. Kaito wants to open four more restaurants in Kitakyushu over the next two years, at a cost of about ¥160 million.

[3] Yui has shown the final accounts to Hanami’s bank, which is willing to lend ¥120 million over eight years, secured on the company’s kitchen equipment. A business angel, Haruto Sato, has also offered ¥160 million in return for 30 % of Hanami’s shares and a seat on the board. Haruto has experience of expanding restaurant chains in Osaka.

[4] News of the profit increase has spread. Kitchen staff have asked for a 6 % pay rise. Hanami has also asked Ono Seimen to let it pay for noodles after 60 days instead of 30; because Hanami’s orders are now so large, Ono Seimen wants to be sure that Hanami can be relied on before it agrees.

Andean Bean Exporters (ABE) buys coffee from farmers in the Huila region of Colombia, roasts it and exports it to Europe and Asia. All figures below are in US$000 and refer to the year ending 31 December 2025.

Table 1: Extracts from ABE’s final accounts for the year ending 31 December 2025 ($000)

Calculate ABE’s return on capital employed (ROCE) for 2025 (show all your working).

Kopiec Games sp. z o.o. is a video game studio in Kraków, Poland, with 45 employees. Its best-known game, Amber Coast, has sold over two million copies, and the studio has registered the Amber Coast name and logo in the European Union. Last year Kopiec bought a smaller studio, Pixelgród, paying PLN 6 million more than the value of Pixelgród’s net assets because of its loyal online community and talented developers.

Volta Solar Installers (VSI) sells and fits solar panels for homes and small businesses in Accra and Kumasi, Ghana.

Table 1: VSI’s statement of profit or loss for the year ending 31 December 2025 (GH₵)

Using Table 1, calculate VSI’s gross profit margin and profit margin for 2025 (show all your working).