Business
Simulation Lab
Experience the role of a financial decision-maker. Analyse financial statements, allocate resources, manage risk, evaluate performance and make strategic business decisions through an integrated professional simulation.
Executive Dashboard
Review the company’s current financial position before making management decisions.
Monthly Revenue Performance
USDManagement Brief
Current PositionThe business is experiencing positive revenue growth and maintains a reasonable liquidity position. However, management must carefully balance expansion, financing costs and working capital requirements.
Revenue growth alone does not guarantee financial success. Your decisions must protect profitability, liquidity and long-term financial stability.
Simulation Competencies
Learning FrameworkFinancial Statements
Analyse the financial information provided to management before entering the decision phase.
Statement of Profit or Loss
Year ended 30 June 2026| Particulars | USD |
|---|---|
| Revenue | $480,000 |
| Cost of Sales | $276,000 |
| Gross Profit | $204,000 |
| Administrative Expenses | $64,000 |
| Selling & Distribution Expenses | $38,000 |
| Finance Costs | $12,000 |
| Profit Before Tax | $90,000 |
| Income Tax Expense | $18,000 |
| Profit After Tax | $72,000 |
Statement of Financial Position
30 June 2026| Particulars | USD |
|---|---|
| NON-CURRENT ASSETS | |
| Property, Plant & Equipment | $210,000 |
| Intangible Assets | $25,000 |
| Total Non-Current Assets | $235,000 |
| CURRENT ASSETS | |
| Inventory | $74,000 |
| Trade Receivables | $61,500 |
| Cash & Cash Equivalents | $96,500 |
| Total Current Assets | $232,000 |
| Total Assets | $467,000 |
| EQUITY & LIABILITIES | |
| Share Capital | $200,000 |
| Retained Earnings | $72,000 |
| Total Equity | $272,000 |
| Long-Term Borrowings | $110,000 |
| Trade Payables & Accruals | $85,000 |
| Total Equity & Liabilities | $467,000 |
Statement of Cash Flows
USD| OPERATING ACTIVITIES | |
| Net Cash from Operating Activities | $91,000 |
| INVESTING ACTIVITIES | |
| Purchase of Property & Equipment | ($42,000) |
| FINANCING ACTIVITIES | |
| Loan Proceeds | $30,000 |
| Dividends Paid | ($18,000) |
| Net Increase in Cash | $61,000 |
Financial Ratio Analysis
Assess the company’s financial health using key performance indicators.
Key Financial Ratios
Current PeriodAnalyst Interpretation
The company appears capable of meeting its short-term obligations.
Gross and net margins provide room for controlled expansion.
Borrowing is significant but remains within a manageable range.
Decision Principle
A professional financial manager should not evaluate
a single ratio in isolation.
Liquidity + Profitability + Solvency +
Growth
must be considered together before approving a
strategic decision.
Management Decision Centre
You are now acting as the company’s management team. Make decisions that will determine the next financial period.
Pricing Strategy
Determine how the company should respond to changing market conditions.
Capital Investment
Decide whether the company should invest in productive capacity.
Financing Strategy
Select an appropriate source of funding for expansion.
Working Capital
Improve the efficiency of receivables and inventory management.
Dividend Policy
Determine how much profit should be distributed to shareholders.
Risk Position
Select the company’s overall strategic risk appetite.
Management Performance
Review the quality of your decisions and understand the financial consequences.
Strong Financial Management
Your current decision profile demonstrates a balanced understanding of financial management.