Assignment Brief Module Title:FINANCIAL DECISION MAKINGModule Code:BM414Assignment No/Title: ASSIGNMENTAssessment Weighting:100%Submission Date:25th May 2021 before 2pmFeedback Target Date: Module Co-ordinator/ Tutor: Course AreaFDSubmission Instructions:This assignment is to be submitted electronically using VLE This assignment must be submitted electronically by 2pm on the submission date To submit electronically you must upload your work to the e-submission … Continue reading “FINANCIAL DECISION MAKING | My Assignment Tutor”
Assignment Brief Module Title:FINANCIAL DECISION MAKINGModule Code:BM414Assignment No/Title: ASSIGNMENTAssessment Weighting:100%Submission Date:25th May 2021 before 2pmFeedback Target Date: Module Co-ordinator/ Tutor: Course AreaFDSubmission Instructions:This assignment is to be submitted electronically using VLE This assignment must be submitted electronically by 2pm on the submission date To submit electronically you must upload your work to the e-submission area within the VLE module concerned. Click Submit> Browse (find the correct file to upload) Upload> Submit You can resubmit your work as many times as you like until the deadline. If you choose to resubmit, your earlier submission will be replaced, and you will NOT receive an Originality Report until 24 hours from when the submission was made.You will receive a digital receipt as proof of submission. This will be sent to your e-mail address; please keep this for reference. You are reminded of the University’s regulations on cheating and plagiarism. In submitting your assignment, you are acknowledging that you have read and understood these regulations. You are reminded that it is your responsibility to keep an electronic copy of your assignment for future reference. Instructions to Students: An individual written assignment of 3,000 words maximum is expected. Use the formal report format and include a Bibliography/ reference list of all books, journals and websites consulted in your research. Assume that the financial analysis is aimed at potential investors who are currently considering investing in Camden Limited. The financial performance evaluation will enable the potential investors decide whether to invest in this company. This assignment tests the following Learning Outcomes for the module: Explain the structure of and terms used within the financial statements Apply management accounting techniques for planning, control and decision making within the organisation Calculate the main accounting ratios and explain their significance to users of financial statement Demonstrate knowledge of the role of finance and accounting within the organisation with respect to both reporting and decision making aspects The Assignment Task: Please note; SKANSKA PLC is a Construction Company based in UK. SKANSKA PLC started back in 1984. The company is planning to expand its operations to other countries in Europe in the next ten (10) years. The financial statements of SKANSKA PLC. are attached for your consideration and attention. You are advised to incorporate the suggested amendments/feedback you received from the module leader during assignment briefing. Required TASK 1 (1500 WORDS) You are part of the Accounting and Finance team at SKANSKA PLC. Write a report to the Management of SKANSKA PLC, critically evaluating the importance of Accounting and Finance functions, duties and roles within SKANSKA PLC. Your evaluation must include some examples within the Company where appropriate. (40 marks) TASK 2 (1000 WORDS) Using the financial statements of SKANSKA PLC calculate the ratios required and comment on the company’s performance from an Investor with £1 million perspective. (50 marks) Marks will be awarded for Structure and Presentation skills. Structure includes the orderly presentation of relevant material. In addition, the extent of research evidenced by the appropriateness and adequacy of in-text referencing. There must be a Cover Page and Contents Page, paragraphs of Introduction, Conclusion and pages must be numbered. (10 marks) Assessment Criteria You will obtain marks for the following: Presentation of your work (report format, clarity of expression, referencing etc.) ……………….……………………….10% The functions/roles/duties of accounting and finance team within SKANSKA PLC with appropriate examples. 40% Ratio calculation……………………………………………………………………………………..………………………… 10% Interpretation and analysis of the Ratios in relation to SKANSKA PLC performance……………… 40% TOTAL MARKS 100% The summarised financial statements of SKANSKA PLC, a Public company engaged in Construction, are shown below: Statement of profit and loss: For the year ended 31 Dec. 2018For the year ended 31 Dec. 2019 £000£000£000£000Sales revenue 4,800 6,000Cost of sales Opening inventory1,200 450 Purchases2,700 4,800 3,900 5,250 Less: Closing inventory (450)(3,450)(900)(4,350)Gross profit 1,350 1,650Operating expenses (600) (675)Finance cost (150) (300)Net profit 600 675 Statement of financial positionAs at year to 31 Dec. 2018As at year to 31 Dec. 2019 £000£000£000£000Non-current assets 2,955 6,000Current assets Inventory450 750 Receivables – trade900 1200 Prepayments90 105 Cash751,515152,070 4,470 8,070Issued share capital 900 900Share premium account 300 300Retained earnings 1,125 1,650 2,325 2,850Non-current liabilities 10% loan notes 1,500 3,000Current liabilities Payables – trade570 2,100 Accruals756451202,220 4,470 8,070 Task 2 – Required Calculate the following five ratios for each of the two years: Return on capital employedNet profit marginCurrent ratioAverage Receivable days/ Debtors collection periodAverage Payable days/ Creditors collection period (10 marks) Comment on the performance of SKANSA PLC. results from and position between the two (2) years from (a), mentioning possible causes, reasons and effects for the changes in the ratios. (40 marks)
