Financial Decision Making

Financial Decision Making

Contents
EXECUTIVE SUMMARY.............................................................................................................1
Part 1: Industry Review...................................................................................................................1
Part 2: Business Performance Analysis...........................................................................................3
2.1 Statement of Profit or Loss....................................................................................................3
2.2 Statement of Financial Position.............................................................................................6
2.3 Statement of Cash Flows.......................................................................................................8
Part 3: Investment Appraisal and Sources of Finance...................................................................11
3.1 Investment Appraisal...........................................................................................................11
3.2. Sources of Finance..............................................................................................................12
REFERENCES..............................................................................................................................15

EXECUTIVE SUMMARY
This report revolves around Roast Ltd. which is a medium scale organisation and is
operating in the industry of coffee houses. From this report, a conclusion can be made that this
company is earning profit of 36000 pounds in the year of 2017 which is continuously increasing
and as it made profit of 81000 pounds in 2018. This analysis of Roast Limited provides an
evidence that it is viable for Starbucks to acquire Roast Limited as they will have adequate
profits.
From the second part of this report, it has been found that the project of expanding business
in Romania is viable for Roast Ltd. and they should consider to adopt this project.
Part 1: Industry Review
Roast Ltd. is an independent coffee house of United Kingdom which was established in the
year of 2008. This company operates in the coffee house industry of United Kingdom which is
considered as one of the most rapidly growing industry. Analysis of this industry is conducted
below using top line review:
 Total revenue earned by the coffee house industry of United Kingdom in 2019 is 6
billion pounds.
 According to world coffee portal, (2019), a total of 7.1% businesses of coffee houses
established in 2017 and 5.8% established in 2018 which lead to a total of 16199 coffee
houses in UK.
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