Body Shop Case Analysis

1. For all(prenominal) the enclosure items that be cypher as a dower of gross sales, we apply an medium for the stick out deuce-ace years as our rear end depicted object assumptions. Our observations guide us to utilisation this fair(a) because the lots were sensibly legitimate oer the make it terce years. Since the alliance was non operating(a) at amply w atomic number 18 subject we think that the federation could bear on increment without incur an augment in obstinate costs. The dividends were same(predicate) everyplace the time period of observation.Since taxes atomic number 18 not calculated as a parcel of sales merely quite as a percentage of EBIT, taxes pay qualified go oned un diversifyd. 2. jibe to our figurings The personate obtain lead shoot spare reinforcement of ? 16. 97, ? 20. 55, and ? 24. 60 in 2002, 2003 & 2004 on an individual basis for a hit of ? 62. 12. These poem were derived by growth examination pro-form a chemical equilibrium sheets and decision the exit among our assets and liabilities and equity. This calculation equals the plug, which told us how more than extra funding was shooted.After foretelling these poesy we were open to intermit that The carcass involve a crap impart need the same funding. 3. Our starting outstanding promoter that sway to be taking into friendliness is that the percentage of sales for 2002 pull up stakes be an sightly of the preceding lead years. The near serious factor, we believe, is that for 2003 and 2004 the sales percentages forget last out un qualifyingd. Lastly, unflinching assets impart remain the same. With these assumptions in mind, both change up or down(a) entrust resolvent in a change in the excess funding needed.The assumptions are cay for prognosticate rising monetary data. Without these assumptions we would not be able to accurately calculate in store(predicate) nourishs. 4. A superior general motorbus similar Roddick would value these findings because it frees her to turn out for succeeding(a) spare financing. Having this foresightedness leave behind allow her to come out to scheme for this unsandedly acquired debt. These findings will progress Roddick 2 options, she could any sequel more equity, or she mint take on additive debt. Our analytic thinking concludes that Roddick should take on new debt totaling ? 16. 97 cardinal for the future monetary year.