Accounting and Financial Statements Revised

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MODEL ANSWER Question One As per the presentation of the company’s information, WPP plc appears to be a right business partner. It is a multinational firm and a global leader in the communication services industry. Although the company made a slight improvement in the net sales growth, it aims for the sustainable growth. Being the largest advertising company, it aims at maintaining lower operating costs by cutting the cost incurred to pay Martin Sorrell, the chief executive and founder amounting to 24.6 million dollars. The primary strategic priority is to increase the share revenues up to 40-45% by use of new technologies in the media. As at 2017, WPP reported a 17.6% growth in revenue. Question Two WPP offers communication services such as Advertising and Media Investment, Data Investment Management, Public Relations & Public Affairs, Branding & Identity, Healthcare and Specialist Communications and digital, promotional & relationship marketing. Question Three WPP companies operate in 112 countries including London the state of origin. The group has set a strategic priority to increase the market penetration to the fast-growing markets in the Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. Question Four According to the latest trend analysis provided, the company is successful since the performance trend is upwards. Income Statement The net sales margin maintains a constant 16% increase in the past 3 years and 17% increase in 2016. There is consistent revenue growth in the 5 years with an average 6% increase in the past 3 years and an extraordinary 17% increase in 2016. There is also a consistent

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