" Raztech plc – AReport onFinancial AnalysisStudent ID:Accounting & DecisionMakingExecutive SummaryThis report analyses the business performance of Raztech using trend and ratio analysis. Due todeclaration of bad debts of debtor, the report recalculates the liquidity and solvency ratio toanalyse bank decision on financing expansion plan. The report critically analyze investment appraisal and provides non financial factors thatdirectors needs to ponder during expansion phase II. It also provides two alternatives soures of financing in case bank are reluctant to financeexpansion project. Accounting & Decision Making Page 2 ContentsExecutive Summary ........................................................................................................................ 2Task 1 Business Performance Analysis .......................................................................................... 4Interpretation of Statement of Profit or Loss .................................................................................. 4Comparative Trend Analysis (GBP in millions) ............................................................................. 4Interpretation of Statement of Financial Position ........................................................................... 6Comparative Trend Analysis (GBP in millions) ............................................................................. 6Liquidity .......................................................................................................................................... 8Solvency .......................................................................................................................................... 9Interpretation of Cash flows............................................................................................................ 9Task 2 ............................................................................................................................................ 11Recalculation of ratios as a result of GBP 150 million bad debts ................................................ 11Task 3 Investment Appraisal ........................................................................................................ 13Task 4 Alternatives Sources of Financing .................................................................................... 14Venture capital funds .................................................................................................................... 14Corporate Deposit ......................................................................................................................... 15References ..................................................................................................................................... 15Accounting & Decision Making Page 3 "