ACFI6004 Finance and Accounting for Business | My Assignment Tutor

ACFI6004 Finance and Accounting for Business This assignment is in two parts. Task-1 Individual work- calculations (20%) Task-2 Individual work- report writing (80%) Calculations Task (20%). Required: Using the provided financial statements of Greggs plc for the year ended 28 December 2019, you are required to select and calculate an appropriate set of ratios to assess the business. 6 marks You should clearly show all the formulae and calculations. The figures should be rounded to two decimal places. Tekna Electronics is planning to manufacture one specialised battery for underwater cameras. The Managing Director of the company has called a meeting to evaluate an investment in new production machinery needed for battery manufacturing. The Managing Director is not sure which machine to invest in. He needs to choose from 3 different machines. The cash flow details, Life of the machines and the purchase prices are as follows. Machine AMachine BMachine CInitial investment (£)440,000525,600884,600Life of the machine4 years5 years3 years In each case the initial investment represents the purchase of plant and equipment whose residual value will be 20% of initial cost, receivable in addition to the net cash flow, at the end of the life of the project. Forecast sales volume, selling price and other costs are as follows; Sales volume (units/year)Selling price per unit (£)Variable cost per unit (£)Fixed cost per annum (£)Machine A100060036080,000Machine B90060032580,000Machine C1300600285130,000 The machine B and C have only recently been introduced to the market and has not been fully tested in operating conditions. Because of the higher risk involved, the appropriate discount factor for the machine B and C is believed to 11% per year, 2% higher than the discount rate for Machine A. Requirement For each of the three projects: Calculate the accounting rate of return (based on the average investment method). 3 marksCalculate the payback period. 1.5 marksCalculate the net present value. 3 markPrepare Tekna’s cash budget from July 2021 to October 2021 from the following budgeted data. Budgeted dataJulyAugustSeptemberOctober££££Sales28,00030,80031,60033,200Purchases26,00025,20025,60026,800Wages1,20013601,4801,600Other overheads2,2002,1602.3002.360Capital expenditure13,000 The following additional information is available: 35% of the customers pay cash and the remainder take 1 month to pay.45% of the purchases are paid for after 1 month and the remainder in 2 months’ time.Wages are paid in the current month.Other overheads are paid after 2 months.Capital expenditure is paid in the following month.Opening cash balance for July was £5,600 overdraft. 6.5 marks Clearly show all the calculations and the formulae used in your calculations and it should be done MANUALLY rather than copying figures from websites. You must not depend on the disclosed ratios in the annual reports. You are required to prepare these ratios on your own. Report writing Task (80%); Required Using a selection of the ratios calculated in the calculations task, comment on the profitability of Greggs Plc and discuss how the cash operating cycle can be improved to increase the profitability of Greggs plc? 40 marksTekna Electronics is finding budget setting process quite hard. When you add the challenges of lack of time to create budget and un-certainty in the market, the budget setting process become very complicated. Even after a budget is created, there can be many factors like inaccuracies in data, unwillingness to change budget habits, lack of flexibilities etc can lead Tekna Electronics to digress from the company’s budget. This issue is not only impacting Tekna’s financial growth but also adversely effecting organisational and management skills. Panels have been established to decide on the type of budget Tekna Electronic should use that can provide more accurate and up to date financial information to assist decision making. Your role is to write a report to the panel briefly explaining different types of budgets, which type of the budget you think is most suitable for Tekna Electronics and why? 40 marks Report writing Task – length The maximum length of the report writing task in the assignment is 2000 words excluding the list of references, appendices, table of contents, cover sheet, front cover and title page. Referencing It is expected at this level that referencing will be complete and accurate, using the Harvard method. ACFI6004 Finance and Accounting for Business report writing Task – Assessment criteria Use of literature (Relevance to specified audience/user): A very good piece of work should show up-to-date, comprehensive and detailed knowledge of the subject area and where appropriate relevant literature that integrates theory with practice. Relevant literature may include suggested readings, other textbooks, journal articles, professional publication and websites. The extent and quality of your sources will be assessed. (10 marks) Critical approach to sources: (Evaluations & Observations , Recommendations & Conclusions) A very good piece of work must show the student can effectively critically review evidence, draw conclusions and suggest ideas to enhance organisational processes and/or theory whilst recognising contextual limitations. Your ability to reflect on the set of financial reports you have read will be assessed. You should be able to identify strong and weak points to support your arguments to invest or not in a given company. You should also be able to demonstrate your own thinking by presenting an argument and supporting it by reference to evidence that you have collected. You should draw conclusions that are logically connected to your argument. (10 marks) Problem solving, application of theory to issues and practice: (Calculations & interpretation of ratio analysis) Your ability to select and calculate right set of ratios and demonstrate understanding of issues raised in the ratios calculated. Your discussion of the issues posed in the question should reflect your understanding. You should be able to present an argument, outlining alternative views (derived from your reading and ratio calculations), presenting evidence that supports these and arriving at a conclusion which you have justified from the literature and from ratios calculated. Your answer to the question should be clearly focused: read the question carefully and refer back to it frequently while writing your answer to ensure that you are not wandering off the point and including irrelevant material. (15 marks) Presentation: The task 2 must be presented professionally, communicate key messages and arguments with convincing substantiation and contain accurate referencing in appropriate format. This includes consideration of general presentation issues such as the inclusions of a sensible introduction, page layout, use of paragraphs, accurate spelling, fluency of language and compliance with presentation instructions. The presentation of citations in the text and accurate referencing must also be in the correct format. (5 marks)


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