SOLUTION: Financial decision making | My Assignment Tutor

1London School of Science and TechnologyModule: (BM414) Financial decision makingCW1………………………………………………………………………………………………………8th April 20211) This email is addressed to the June Cohort students whose FDM Assignment is due of 4th May2021 [this includes students that I have on A-Tuesday Afternoon (30); B-Thursday Evening (32)and C-Friday Morning (32)]2) I have provided you all with a DRAFT that would enable you all to write your Task 1 Answer. Iadvised you to begin to write the Answer to your Assignment directly in the Template provided.3) I have requested all of you to submit to me the Draft that you have written so that I can have alook at it –> and CONFIRM if it is in order.4) When I receive your Draft I look at the following ASPECTS or sections of TASK 1: FEEDBACKFinancial Decision MakingTASK 1INTRODUCTION:ANALYSIS OF FUNCTIONS OF ACCOUNTING &FINANCE:ANALYSIS OF ROLES OF ACCOUNTING &FINANCE:ANALYSIS OF DUTIES OF ACCOUNTANTS:EXPLANATION OF STRUCTURE & TERMSWITHIN FINANCIAL STATEMENTS:APPLICATION OF MANAGEMENTACCOUNTING TECHNIQUES: 2 THE ROLE OF MANAGEMENT ACCOUNTANTS:EVALUATION OF 3 ASPECTS OFACCOUNTING AND/OR FINANCE: 5) Only a handful of students have submitted their Answer (Draft) to Task 1. A0 studentB1 studentC4 students submitted 6) If you delay your ACTION you will only put yourself under unnecessary PRESSURE !TODAY I AM INTRODUCING TASK 21) I have worked out the 5 Ratios for the 2018 Year.2) What I would like you to do now is to USE the EXAMPLE I’ve given you below for 2018, and DOthe Ratios for 2019.3) Once you complete this Task, please immediately send me your calculations for 2019 so that Ican CONFIRM correctness for you.4) I will then give you a GO-AHEAD for the remaining part of TASK 2 –>> which, as you can see,is not a lotTASK 2: RATIONS CALCULATIONS, ANALYSIS AND COMMENTS(1) Importance of ratios in business and for SKANSA PLCLeave this section out at the moment. Just focus on RATIOS.(2) Five ratios for two years (2018 and 2019):2.1 Return on capital employed 2018a) The Formula is Operating Profit /Total Assets– Current Liabilitiesb) That is: Operating Profit DIVIDED by TotalAssets MINUS Current Liabilitiesc) The above is written as follows:Operating Profit——————————————2019 3 Total Assets – Current Liabilitiesd) Now, go to the Statements and extract therelevant figures, as follows:750———————–X 1004470 – 645Then: deal with 4470 minus 645.It becomes: 750——– X 1003825e) The answer is 19.6% 2.2 Net profit margin 2018Net Profit————- X 100 =>> 600Sales ——– X 100 =>> 12.5%4800Answer: 12.5%2019 2.3 Current ratio 2018Current Assets 1515———————- =>> ——– =>> 2.35Current Liabilities 645Answer: 2.35 : 12019 2.4 Average Receivable days/ Debtors collection period 2018Receivables 900—————– X365 =>> —— X365 =>> 68.4 daysSales 4800Answer: 68.4 days2019 42.5. Average Payable days/ Creditors collection period 2018Payables 570—————X 365 =>> —— X 365 daysPurchases 2700Answer: 5.62 days2019 5