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2010年12月ACCA考试:真题P5试题9

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Section B–TWO questions ONLY to be attempted

The company's recent financial performance is summarised below:

Summary Income Statements

A junior analyst in the company has correctly prepared a spreadsheet calculating the Z-score as follows:

Required:

(a)Discuss the strengths and weaknesses of quantitative and qualitative models for predicting corporate failure.(6 marks)

(b)Comment on the results in the junior analyst's spreadsheet.(5 marks)

(c)Identify the qualitative problems that are apparent in the company's structure and performance and explain why these are relevant to possible failure.(5 marks)

(d)Critically assess the results of your analysis in parts(b)and(c)alongside details of RMB's recent financial performance and suggest additional data that should be acquired and how it could be used to assess RMB’s financial health.(4 marks)

(20 marks)

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