Virksomhedsøkonomi B

Business Economics B

Ny ordning

New guidelines

Thursday, 23 May 2019
9 a.m. - 1 p.m.


This material consists of four assignments. Each assignment has a number of questions which have all been given an approximate weighting. The weightings are used in the overall exam assessment.

All the assignments must be completed independently of each other. The assignments come with an accompanying Excel file which has a number of appendices containing data and sheets. In addition, there is a Word document containing all the questions.


The Word document with all the questions can be downloaded here.

The Excel file with all the appendices can be downloaded here.


Save the files on your computer before you start to use them. Name the files with your own name. In the Word document, you must also complete the fields in the header.

Communication with anyone else during the exam is not permitted.

Assignment 1

Company analysis

Søstrene Grene is a Danish design and trading group whose products are inspired by the lives of two sisters, Anna and Clara Grene. The company opened its first shop in Aarhus in 1973 by the husband-and-wife team Inger Grene and Knud Olsen. The company is founded on strong family values – ‘the sister spirit’ – and is now owned and run by the second generation of the family, the brothers Cresten and Mikkel Grene.

Søstrene Grenes Holding ApS is the parent company for the two subsidiaries Søstrene Grenes Handelskompagnie A/S and Søstrene Grenes Import A/S.

The product range comprises products within the following categories: home interiors, stationery, gift wrapping, arts and crafts, kitchen and toys. The shops have a very small number of products which they stock all the time – most are seasonal goods which are available for sale in the shops for a very limited period. Prices are affordable, while the design is clearly inspired by feminine values. The shop interiors are built up around the ‘snake principle’ with a labyrinth of aisles.

Søstrene Grene describes its shops on its website: “We have created a chain of retail shops that house a truly special atmosphere. Walking into one of these shops is meant to feel like entering an oasis where, at least for a moment, shoppers can take a break from the hectic pace of everyday life. In this way, the sisters seek to set the stage for wonderful experiences and joyful moments. Experiences that encourage people to explore and let their imaginations run free.”

On the company website, it says: “Welcome to the wonderful world of Anna and Clara. With a curious and creative mind, even the smallest things can become something wonderful.”


Anna og Claras vidunderlige verden

Søstrene Grene opened shop number 200 in summer 2018. The shops are found in 16 countries, primarily in Europe. Most are run on a franchise basis, but one in four shops has been established in cooperation with external partners. Søstrene Grene has no online store, and at the moment has no plans to explore this form of distribution.

In the 2017/18 financial year, Søstrene Grenes Holding ApS posted revenue of DKK 894 million and a pre-tax profit of DKK 103 million. The company has just over 100 employees at its head office.

This assignment comes with the following material:

Articles: Key figures:
  • Prepared accounting and key figures for Søstrene Grenes Holding ApS for the years 2015/16 to 2017/18. See Appendix 1 of the Excel file.
Cash flow statement:
  • Cash flow statement for Søstrene Grenes Holding ApS for the 2017/18 financial year. See Appendix 2 of the Excel file.

Questions 1.1 - 1.6

1.1 (10%)
Explain which internal and external factors have had an impact on Søstrene Grenes Holding ApS’s financial development.

1.2 (15%)
Analyse how the internal and external factors have influenced the development in the index figures for earnings and asset use efficiency (capital adjustment) from 2015/16 to 2017/18.

The key figures can be found in Appendix 1 of the Excel file.

1.3 (10%)
Assess how the development in the index figures has affected the profit margin ratio and the asset turnover ratio from 2015/16 to 2017/18.

The key figures can be found in Appendix 1 of the Excel file.

1.4 (5%)
Explain why the return on equity rises from 24.7% in 2016/17 to 41.3% in 2017/18.

The key figures can be found in Appendix 1 of the Excel file.

1.5 (5%)
Explain how Søstrene Grenes Holding ApS’s overall liquidity has developed in 2017/18, and which key factors have driven this development.

The cash flow statement can be found in Appendix 2 of the Excel file.

1.6 (5%)
Assess which competitive strategy Søstrene Grene uses.

Assignment 2


Bolighuset ApS is a design shop located in Aarhus. The company has a physical shop and an online store. The shop is one of the trendiest design shops in Aarhus, and is seeing strong growth in sales. The company is owned by Helle Juul, who set up Bolighuset ApS 10 years ago. Since it was established, Lotte Nielsen has been employed in Bolighuset ApS, where she has worked closely with Helle Juul since the start 10 years ago. They have, for example, jointly decided on everything to do with the product range, procurement and the shop interior.

The biggest competitors are two department stores located close to Bolighuset ApS. Bolighuset ApS is able to compete with the department stores, as it provides a far higher level of personal service.

Bolighuset ApS is thinking about moving to new and larger premises in order to be able to maintain the growth in sales. However, this will be expensive, as the cost of premises in attractive locations in Aarhus is high.

Questions 2.1 - 2.3

2.1 (5%)
Explain why Bolighuset ApS needs to prepare an annual report.

2.2 (5%)
Prepare an income statement classified by type of expenditure for 2018 for Bolighuset ApS. It is not necessary to prepare notes.

The trial balance can be found in Appendix 3.
You will find a sheet which can be used for the income statement in Appendix 4.

2.3 (5%)
Discuss how Bolighuset ApS’s financial situation will be affected if Helle Juul decides to move the business to new and larger premises.

Assignment 3

Calculation and earnings

House-Engros A/S is a Danish wholesale company which engages in the resale of interior products for modern Scandinavian homes. House-Engros A/S buys most of the products in Indonesia, for example small pieces of furniture made of different wood types.

House-Engros A/S’s owner has just returned home from an inspirational trip to Indonesia, and is now considering whether or not to buy a round tray table in teak. The tray table is designed for indoor as well as outdoor use. The owner therefore sees considerable sales potential for the tray table, and believes that 1,500 items can be sold in the course of spring and summer 2019.

The purchase price for a single tray table is 400,000 Indonesian rupiah (IDR). The exchange rate for IDR 100 is DDK 0.045. The insurance premium will account for 3% of the purchase price. Shipping and freight forwarding for the whole consignment will cost DKK 7,550 and DKK 4,225, respectively. Finally, the tables will be subject to a customs tariff of DKK 25 per table.

The budgeted selling price for the tray table is DKK 499. However, the owner is not quite sure that the tray table can fetch this price.

Questions 3.1 - 3.4

3.1 (5%)
Calculate the variable unit costs for one tray table.

The necessary information can be found in Appendix 5.

3.2 (5%)
Explain how the prepared calculation can be used by House-Engros A/S.

3.3 (5%)
Calculate the expected contribution margin and the expected contribution ratio for one tray table.

3.4 (5%)
Explain how the contribution ratio is affected if the selling price for a tray table is lower than the budgeted DKK 499.

Assignment 4

Budgeted income statement

Two years ago, Stine Justesen completed her training as a sales assistant in a furniture shop, where she is still employed. Stine Justesen is thinking about starting her own business, as both her parents are self-employed, and throughout her childhood and youth she has been influenced by this way of life. Stine Justesen is very interested in home accessories and fashion. She therefore wants to set up a home accessories and lifestyle shop.

At the moment, Stine Justesen earns DKK 300,000 a year. She is only prepared to be self-employed if she can be sure of generating a pre-tax profit from her business of at least the same amount. As Stine Justesen does not have that much money saved up, she needs to take out a start-up loan from the local bank. Stine Justesen expects that she will need to borrow DKK 600,000. The bank has asked her to draw up a budgeted income statement (profit and loss budget) for it to be able to assess the shop’s earnings.

Questions 4.1 - 4.2

4.1 (10%)
Prepare a quarterly budgeted income statement for 2019/20 for Stine Justesen’s home accessories and lifestyle shop.

The necessary information can be found in Appendix 6.
Appendix 6 also includes a sheet for the budgeted income statement.

4.2 (5%)
Discuss whether the budgeted earnings for 2019/20 are satisfactory.