Faculty of Design, Media & Management Assignment Brief Module Title: FINANCIAL DECISION MAKING Module Code: BM414 Assignment No/Title: ASSIGNMENT Assessment 100% Weighting: Submission Date: 25th May 2021 before 2pm Feedback 3 weeks Target Date: Module Co-ordinator/ Mukta Rani Course Area FD Tutor: Submission 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 … Continue reading “FINANCIAL DECISION MAKING | My Assignment Tutor”
Faculty of Design, Media & Management Assignment Brief Module Title: FINANCIAL DECISION MAKING Module Code: BM414 Assignment No/Title: ASSIGNMENT Assessment 100% Weighting: Submission Date: 25th May 2021 before 2pm Feedback 3 weeks Target Date: Module Co-ordinator/ Mukta Rani Course Area FD Tutor: Submission 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 Bucks 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 aBibliography/ 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 Page 1 of 5 The Assignment Task: Please note; SKANSA PLC is a Construction Company based in UK. SKANSA PLC started back in 1984. The company is planning toexpand its operations to other countries in Europe in the next ten (10) years. The financial statements of SKANKA 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 SKANSA PLC. Write a report to the Management of SKANSA PLC, critically evaluating the importance of Accounting and Finance functions, duties and roles within SKANSA PLC. Your evaluation must include some examples within the Company where appropriate. (40 marks) TASK 2 (1000 WORDS) Using the financial statements of SKANSA 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 SKANSA PLC with appropriate examples.40% Ratio calculation……………………………………………………………………………………..………………………… 10% Interpretation and analysis of the Ratios in relation to SKANSA PLC performance………………40% TOTAL MARKS100% Other informations continued on page-3 Page 2 of 5 The summarised financial statements of SKANSA PLC, a Public company engaged in Construction, are shown below: Statement of profit and loss: For the year ended For the year ended 31 Dec. 2018 31 Dec. 2019 £000£000 £000 £000 Sales revenue 4,800 6,000 Cost 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 1,650 Operating expenses (600) (675) Finance cost (150) (300) Net profit 600 675 Statement of financial position As at year to 31 Dec. As at year to 31 Dec. 2018 2019 £000 £000 £000 £000 Non-current assets 2,955 6,000 Current assets Inventory 450 750 Receivables – trade 900 1200 Prepayments 90 105 Cash 75 1,515 15 2,070 4,470 8,070 Issued share capital 900 900 Share premium account 300 300 Retained earnings 1,125 1,650 2,325 2,850 Non-current liabilities 10% loan notes 1,500 3,000 Current liabilities Payables – trade 570 2,100 Accruals 75 645 120 2,220 4,470 8,070 Page 3 of 5 Task 2 – Required Calculate the following five ratios for each of the two years: Return on capital employed Net profit margin Current ratio Average Receivable days/ Debtors collection period Average 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) Page 4 of 5 Criteria 70%60-69%50-59% Presentation Brief fully met withinWritten in a ReportStructured well in a Including report word count.format within wordReport format. Professionalcount. Meets briefWriting style is format, clarity of presentation andfully. Clearly writtensometimes unclear. expression,10% language used in aand presented.Adequate referencing, report format.Good referencingreferences however conclusion Excellent range andused from a rangeonly partial use of source of referencing.of sources withHarvard referencing. Harvard referencingsensible andA reasonable used. Excellentdetailed conclusionsattempt at a conclusions conclusion made Role of management DemonstratesThe role ofSome research into accounting excellent researchmanagementthe role of and understanding ofaccountingmanagement techniques in40% the role oftechniques hasaccounting planning, managementbeen welltechniques is control and decision accountingresearcheddemonstrated making process techniques and of itsdemonstrating atogether with some uses in planning,good understandingunderstanding of its control and decisionof its uses inpractical uses in makingplanning, controlplanning, control and decision makingand decision making Ratio Calculation Excellent ratioA good ratioFair ratio calculations with thecalculations with thecalculations with the 10%correct units ofcorrect units ofcorrect units of measurements for allmeasurements formeasurements for the ratios requiredat least 4 of theat least 3 of the over the two-yearratios required overratios required over period.the two-year periodthe two-year period Interpretation and ExcellentGood interpretationFair interpretation analysis of financial interpretation andand analysis of theand analysis of the analysis of theperformance areperformance are ratios40% performance areprovided toprovided to provided todemonstrate thedemonstrate the demonstrate thefinancial situationfinancial situation financial situation andand possible causesand possible causes possible causes forfor the change fromfor the change from the change from anan investorsan investors investors perspective.perspective.perspective. 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