Reference no: EM132097106
Managing Financial Resources and Decisions Assignment -
Learning Outcomes -
- Be able to make financial decisions based on financial information.
- Be able to evaluate the financial performance of a business.
BreadTalk Group Limited Case Study -
Task 1 - Assume that the following income and expenses are excerpted from one of the branches of BreadTalk in Singapore. Prepare a cash budget for the month of March 2017 and analyse the liquidity position of that branch and suggest appropriate financial measures..
Transaction details -
1. All sales at the branch are on cash basis only; the Marketing manager has estimated weekly sales in the month of March 2017 to be $6500.
2. Supplies for the branch are bought on credit the suppliers give 2 months credit. Details of Purchase are as follows:
Jan 2017 - $4200
Feb 2017 - $4250
March 2017 - $4350
3. Monthly rental for the shop is $8250, and paid on 5th of every month.
4. Three full time bakers work in the branch and all three are paid per month $2200 each and two part time cashiers are paid $650 each.
5. Advertising and promotion expenses per month are estimated to be $1000 per month.
Task 2 - Explain the significance of unit cost for pricing decisions? How can BreadTalk calculate its unit cost for freshly baked buns and how would it affect its pricing?
Task 3 - Assume that you have been appointed as the Investment Manager for BreadTalk's expansion in the UK market. Explain how would you evaluate the business proposal based on the following information?
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Investment details - The management's objective is to recover the cost within the next three years and see whether the project would be a viable project.
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Initial Investment
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SGD 2 Million, cost of capital 10%
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Year
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(Outflow)/Inflow
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0
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(2000000)
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1
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600000
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2
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700000
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3
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700000
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Task 4 - a) Discuss the main financial statements such as Trading Account, Profit and Loss Account and Balance Sheet.
b) Explain how the financial statements of a Doctor's Partnership firm would differ as compared to BreadTalk Group.
Task 5 - Calculate the following financial ratios and compare and analyse the performance of BreadTalk group for the financial year's 2014 and 2015.
- Current Asset ratio.
- Acid Test ratio.
- Return on Capital Employed.
- Gross Profit ratio.
- Stock Turnover ratio.
- Capital gearing ratio.
Attachment:- Case Study.rar