Assume that you are the Finance Director of a public company, Methods plc. Your Board of Directors have requested that you investigate the financial position of a company, Sutton plc

Question

Assume that you are the Finance Director of a public company, Methods plc. Your Board of Directors have requested that you investigate the financial position of a company, Sutton plc, which the board are interested in purchasing. Your accountancy staff have reviewed the figurers for Sutton plc over a two year period and produced some significant ratios.

Consider these ratios and draft a preliminary report for the board of Methods plc on the financial position of Sutton plc. Identify any limitations your review has discovered and any further information you would wish to see before making a final recommendation to the board. Your report should be no longer than 2,000 words.