Think Like a Business Manager.
A professional financial management simulation where you analyse financial statements, evaluate business performance, make strategic decisions and observe their financial consequences.
Company Performance Overview
Review the company’s current financial position before making management decisions.
Core Financial Statements
Analyse the company’s financial performance and financial position using standard accounting statements.
Statement of Profit or Loss
Year ended 31 December| Particulars | Current Year | Prior Year |
|---|---|---|
| Revenue | $1,250,000 | $1,153,000 |
| Cost of Sales | ($788,000) | ($718,000) |
| Gross Profit | $462,000 | $435,000 |
| Administrative Expenses | ($118,000) | ($112,000) |
| Selling & Distribution | ($96,000) | ($95,000) |
| Depreciation | ($62,000) | ($61,000) |
| Operating Profit | $186,000 | $167,000 |
| Finance Costs | ($24,000) | ($27,000) |
| Profit Before Tax | $162,000 | $140,000 |
Statement of Financial Position
At 31 December| Particulars | Amount |
|---|---|
| Non-current Assets | $620,000 |
| Property & Equipment | $510,000 |
| Intangible Assets | $110,000 |
| Total Non-current Assets | $620,000 |
| Inventory | $184,000 |
| Trade Receivables | $166,000 |
| Cash & Cash Equivalents | $214,000 |
| Total Current Assets | $564,000 |
| Total Assets | $1,184,000 |
| Equity | $706,000 |
| Non-current Liabilities | $286,000 |
| Current Liabilities | $192,000 |
| Equity & Liabilities | $1,184,000 |
Statement of Cash Flows
Indirect Method| Cash Flow Category | Amount |
|---|---|
| Profit Before Tax | $162,000 |
| Depreciation | $62,000 |
| Increase in Receivables | ($22,000) |
| Increase in Inventory | ($18,000) |
| Net Cash from Operating Activities | $184,000 |
| Purchase of Property & Equipment | ($74,000) |
| Net Cash from Investing Activities | ($74,000) |
| Loan Repayment | ($38,000) |
| Dividends Paid | ($22,000) |
| Net Cash from Financing Activities | ($60,000) |
| Net Increase in Cash | $50,000 |
Key Financial Ratios
Ratios transform accounting information into meaningful indicators of financial performance and risk.
Management Decision Centre
You are the Finance Director. Choose a strategic action and observe how your decision affects the business.
Strategic Investment Decision
The company has sufficient cash reserves to fund expansion. Management is considering three alternatives.
Select an option above to evaluate the expected outcome.
Management Considerations
What This Simulation Develops
The objective is not simply to calculate accounting figures. It is to understand what those figures mean for management.
Interpret financial statements and understand the relationship between profit, assets, liabilities and cash.
Use financial ratios to evaluate liquidity, profitability, efficiency and financial risk.
Convert financial information into practical management decisions.
Balance growth, liquidity, profitability, risk and long-term sustainability.
A strong manager does not look at profit in isolation. Financial decisions require simultaneous consideration of profitability, liquidity, capital structure, cash flow and strategic objectives.