Accounts and finance

Table of Contents

1. Topic pack - Accounts and finance - introduction
2. 3.1 Sources of finance - notes
3. 3.1 Sources of finance - questions
4. 3.2 Investment appraisal - notes
5. Investment appraisal
6. 3.2 Investment appraisal - questions
7. 3.3 Working capital - notes
8. 3.3 Working capital - questions
9. 3.4 Budgeting - notes (HL only)
10. 3.4 Budgeting - questions
11. 3.5 Final accounts - notes
12. 3.5 Final accounts - questions
13. 3.5 Final accounts - simulations and activities
    1. DragIT - Build a profit and loss account
    2. DragIT - Build a balance sheet
    3. TryIT - Accounting at Maze Green Yachts
14. 3.6 Ratio analysis - notes
15. 3.6 Ratio analysis - questions
16. 3.6 Ratio analysis - simulations and activities
17. Printable version

TryIT - Accounting at Maze Green Yachts

Now that you have looked at basic accounting issues, why not have a look for yourself and see how a firm produces their accounts.

In the window below is the Maze Green Yachts online business simulation. In this, you get to see how well you can run a major international yacht manufacturer.

To test how Maze Green account for their yachts and work out their financial performance, go to the Maze Green business simulation (you can either do this in the window below or you can open it in a separate window by following the previous link).

Try running the simulation for a few quarters and then have a look at the financial results that are produced. Make sure you understand all the terms in the results and then consider the questions/issues below.

Question 1

Identify three examples of variable costs that Maze Green will be likely to pay when producing their yachts.

Question 2

Identify three examples of fixed costs that Maze Green will be likely to pay when producing their yachts.

Question 3

Identify any examples of semi-variable costs that you would expect Maze Green's costs to pay.

Question 4

Identify the level of cash the company currently have available and how much this increased/decreased, since you started running the simulation. How has the level of short-term loans changed?

Question 5

If Maze Green Yachts are short of cash, examine possible sources of finance available to them.

Question 6

Try running the simulation and progressively reducing the amount you produce of each yacht. Identify the break-even output.