Reference no: EM132469624
Finance Assignment - Practical Business Accounting
Learning Outcomes -
LO1. Be able to understand the application of finance.
LO2. Be able to know appropriate sources of finance for a range of organisations.
LO3. Be able to understand how financial Information can be used to measure business performance.
LO4. Be able to understand the importance of finance in operating business organisations.
Task 1 - Produce a profit and loss account
a. Produce a balance sheet.
b. Check both for accuracy.
Task 2 - Evaluate sources of finance for a range of organisations.
For each case study below, discuss what might be suitable sources of finance for each.
Case 1 (Farm) Charlie Williams & Helena Prowski own a Heath Food Farm in Norfolk, where they grow wheat, barley and oats but often run out of cash just before the summer harvest. This year, a tractor caught fire and could not be used anymore. Buying another one would be too expensive. What sources of finance could they consider?
Case 2 (Gift shop) Azra Valani opened her Gift Shop two years ago. The business started well, but major roadworks and town centre redevelopment during recent months has reduced her passing trade and she is struggling to pay the rent for her shop. The trader next door has not managed to survive and consequently the lease is now available at a favourable price. Azra feels confident that trade will improve once the work is complete and ideally would like to expand into the adjoining unit. What sources of finance could Azra consider?
Case 3 (Board Game Company) Welling Games Ltd designs and sells board games to toy distributors. It has an idea for a new board game, but it will cost £300,000 to develop. The company can't access that money alone and the bank has refused a loan. What sources of finance could Welling Games Ltd consider?
Task 3 - Apply Complex Financial Ratios to Measure Business Performance
Pepsico is considered to be one of the most efficient companies in the world.
The attached table shows key financial ratios for Pepsico over the 10 year period from 2009-2018.
Use your knowledge of ratio analysis to explain the meaning of the accounting ratios by comparing the figures over the 10 year period shown.
Evaluate the performance and position of Pepsico, based on the ratio analysis, giving appropriate supporting evidence for any conclusions. Think about what was happening in the global economy over this period and what other factors might affect Pepsico by looking at their subsidiaries.
Task 4 - Analyse the Importance of Finance in Operating Business Organisations
Discuss the meaning of Working Capital' and what it tells us about a firm's day-to-day operations.
How might this vary for different organisations/sectors?
Attachment:- Finance Assignment – Practical Business Accounting.rar