Appendix 3
Case Studies
The case studies contained in this chapter provide the reader with the opportunity
to interpret and analyse financial information produced by an accountant for
use by non-accounting managers in decision-making. Each case study is identified
with the chapter numbers that will aid inunderstanding, interpretation and critical
analysis of the case.
Appendix 4 contains a suggested answer for each case, although the nature of
such cases is that there is rarely a single correct answer, as different approaches
to the problem can highlight different aspects of the case and a range of possible
approaches are possible.
Case study Title Chapters
1 Paramount Services PLC 7
2 Swift Airlines 8 and 9
3 Holly Road Farm Produce Ltd 10
4 Call Centre Services PLC 9 and 10
5 Cryogene Corp. 11
6 Serendipity PLC 12 and 13
7 Carsons Stores Ltd 14
8 White Cold Equipment PLC 15Case study 1: Paramount Services PLC
Paramount Services provides a range of business consultancy services. Its financial
statements for the last year are given in Table A3.1.
An analyst has produced the following ratio analysis (Table A3.2) and has asked
you to comment on any aspects that you think are important.
This question particularly relates to an understanding of Chapter 7.