Recent Question/Assignment

UK COLLEGE OF BUSINESS AND COMPUTING
Module Booklet
Course: EDEXCEL BTEC (HND) BUSINESS
Group: Ed excel Level 4
Module: Unit 2 – Managing Financial Resources & Decisions
Module type: Core
Module Code: H/601/0548
Module Credit: 15
Teaching Period: (15+6 weeks)
Level: 4 (QCF)
Contact Hours: (21*3 = 63)
Lecturers: 15 weeks
Support and guidance: 3 week
Assessment and feedback: 3 weeks
MODULE LEADER: MR GEORGE MUWONGE
Lecturer: George Muwonge
Start date: 27/01/2014
Day: Thursday
Time: 14:00 – 17:00
Campus: Wentworth House
Term: Winter
CONTENTS
1. INTRODUCTION, AIMS AND OBJECTIVES
2. MODULE OUTLINE AND TEACHING METHODS
3. READING AND COURSE PREPRATION
4. LECTURE WITH DETAILED COURSE PROGRAMME AND OBJECTIVES
5. ASSESSMENT DETAILS
INTRODUCTION
This unit is designed to give learners a broad understanding of the sources and availability of finance for a business organisation. Learners will learn how to evaluate these different sources and compare how they are used.
They will learn how financial information is recorded and how to use this information to make decisions for example in planning and budgeting.
Students of this unit will gain an understanding of where and how to access sources of finance for a business, and the skills to use financial information for decision making. Upon completing the unit, learners will understand the sources of finance available to a business; understand the implications of finance as a resource within a business; be able to make financial decisions based on financial information, and; be able to evaluate the financial performance of a business.
Decisions relating to pricing and investment appraisal are also considered within the unit. Finally, learners will learn and apply techniques used to evaluate financial performance.
Aim:
The unit aim is to provide learners with an understanding of where and how to access sources of finance for a business, and the skills to use financial information for decision making.
Key Objectives:
• Identify the sources of finance available to a business
• Examine the implications of the different sources
• Select appropriate sources of finance for a business project
• Evaluate the costs of different sources of finance
• Explain the role of financial planning
• Analyse the information needs of different decision makers
• Explain how different types of finance and their costs appear in the financial statements of a business;
• Analyse and monitor cash and other budgets make appropriate decisions
• Calculate unit costs and make pricing decisions
• Assess the viability of a project using investment appraisal techniques
• Explain the purpose of main financial statements
• Compare and contrast the formats of financial statements for different types of business such as sole trader, partnership and company.
• Analyse key accounting ratios for profitability, liquidity, efficiency and investment and compare both internal and external.
Learning Outcomes and assessment criteria:
On successful completion of this unit a learner will:
? Understand the sources of finance available to a business
1.1 identify the sources of finance available to a business
1.2 assess the implications of the different sources
1.3 evaluate appropriate sources of finance for a business project
? Understand the implications of finance as a resource within a business
2.1 analyse the costs of different sources of finance
2.2 explain the importance of financial planning
2.3 assess the information needs of different decision makers
2.4 explain the impact of finance on the financial statements
? Be able to make financial decisions based on financial information
3.1 analyse budgets and make appropriate decisions
3.2 explain the calculation of unit costs and make pricing decisions using relevant information
3.3 assess the viability of a project using investment appraisal techniques
? Be able to evaluate the financial performance of a business
4.1 discuss the main financial statements
4.2 compare appropriate formats of financial statements for different types of business
4.3 interpret financial statements using appropriate ratios and comparisons, both internal and external.
Knowledge and Understanding:
? Identify and explain the sources of finance available to a business
? Assess the implications of finance as a resource within a business
? Know how to make financial decisions based on financial information
? Evaluate the financial performance of a business
Indicative content:
1. Understand the sources of finance available to a business
Range of sources: sources for different businesses; long term such as share capital; retained earnings; loans; third-party investment; short/medium term such as hire purchase and leasing; working capital stock control; cash management; debtor factoring
Implications of choices: legal, financial and dilution of control implications; bankruptcy.
Choosing a source: advantages and disadvantages of different sources; suitability for purpose e.g. matching of term of finance to term of project
2. Understand the implications of finance as a resource within a business
Finance costs: tangible costs e.g. interest, dividends; opportunity costs e.g. loss of alternative projects when using retained earnings; tax effects
Financial planning: the need to identify shortages and surpluses e.g. cash budgeting; implications of failure to finance adequately; overtrading
Decision making: information needs of different decision makers
Accounting for finance: how different types of finance and their costs appear in the financial statements of a business; the interaction of assets and liabilities on the balance sheet and on international equivalents under the International Accounting Standards (IAS).
3. Be able to make financial decisions based on financial information
Budgeting decisions: analysis and monitoring of cash and other budgets;
Costing and pricing decisions: calculation of unit costs, use within pricing decisions; sensitivity analysis;
Investment appraisal: payback period; accounting rate of return; discounted cash flow techniques i.e. net present value; internal rate of return;
Nature of long-term decisions: nature of investment importance of true value of money; cash flow; assumptions in capital investment decisions; advantages and disadvantages of each method.
4. Be able to evaluate the financial performance of a business
Terminology: introduction to debit, credit, books of prime entry, accounts and ledgers, trial balance, final accounts and international equivalents under the International Accounting Standards (IAS);
Financial statements: basic form, structure and purpose of main financial statements i.e. balance sheet, profit and loss account, cash flow statement, notes, preparation not required; changes to reporting requirements under the International Accounting Standards (IAS) e.g. statement of comprehensive income, statement of financial position; distinctions between different types of business i.e. limited company, partnership, sole trader;
Interpretation: use of key accounting ratios for profitability, liquidity, efficiency and investment; comparison both external i.e. other companies, industry standards and internal i.e. previous periods, budgets.

Programme Specification
Accrediting Body: EDEXCEL
Course: BTEC HND IN BUSINESS
Unit: 2 MANAGING FINANCIAL RESOURCES & DECISIONS
Wk Lecture Schedule Outcome of session Activity/seminar and formative assessment Resources
1
Introduction to Managing Financial Resources & Decisions: identifying the sources of finance available to a business and assessing the implications of the different sources of finance. Introduction to the module, mode of assessment, awareness of the awarding body, assessment criteria and the mode of assessment Short-answer questions to assess learner’s knowledge, role play and individual induction, helping to know each other. Module handbook
2 Case study
Assessing the implications of the various sources of finance Identify sources of finance available to an existing business
Be able to assess the implications of the different sources of finance. Power point slides and lecture notes.
3
Evaluating appropriate sources of finance for a business project. By the end of the session, the learner will be able to evaluate appropriate sources of finance for a business project. Moderated group discussions and short-answer questions. Power point slides and lecture notes.
4
Case study: analysing the costs of different sources of finance. Working with the assignment Case study and addressing the learning outcome 1.1, 1.2 and 1.3 Module hand book and assignment for the purpose
5
The importance of financial planning. Planning is a managerial function and this lecture aims at enabling the learner to grasp the importance of financial planning within an organisation. Reflective questions at the end of the class and a case study for discussion Power point slides, video-based sessions on the importance of financial planning.
6
Assessing the information needs of different decision makers. Identify the types of decisions made by various decision makers at all levels in an organisation.
Assess the information needed to support decision making at all levels of the organisation. Practical discussion and feedback Computer Lab
7
The impact of finance on financial statements. Having understood the importance of financial planning to an organization, explain the impact of finance on financial statements.
Working with the Assignment meeting the LO
2.1,2.2,2.3,2.4 Case study and address the LO PowerPoint slides and lecture notes
8
Analysing budgets and making appropriate decisions. Explain and illustrate two components of the budget that could help you make appropriate financial decisions. Case study and address the LO PowerPoint slides and lecture notes.
9
Calculation of unit costs and making pricing decisions, using relevant information. Do Case study and role play. PowerPoint slides and lecture notes.
10
Assessing the viability of a project, using investment appraisal techniques. Do Group discussion Power point slides and lecture notes.
11
Case study and class discussion of the main financial statements. Explain the key components of financial statements. Case study and LO Power point slides and lecture notes.
12 Appropriate formats of financial statements for different types of business. Identify the different formats of financial statements for different types of business and explain their relevance. Case study and LO Power point slides and lecture notes.
13 Interpreting financial statements, using appropriate ratios and comparisons (internal & external). Demonstrate an understanding of the various ratios used to interpret financial statements. Discussion and reflective feedback Power point slides
14 Case study Interpret financial ratios using a real business
15 Revision. Summarising all the tasks Addressing the LO Feedback addressing the learning outcome
16 Assignment Support and guidance Addressing the LO
17 Assignment Support and guidance Addressing the LO
18 Assignment Support and guidance Addressing the LO
19 Assessment and feedback Feedback given to learners
20 Assessment and feedback Feedback given to learners
21 Assessment and feedback Feedback given to learners
Recommended text and links:
Core text
? Dyson J R, (2007), Accounting for Non-Accounting Students. Financial Times/Prentice Hall. ISBN: 9780273709220
Other text
Atrill P. (2012), Financial Management for Decision Makers. 6th Edition, Harlow: Pearson Financial Times/Prentice Hall. ISBN: 9780273756934
Atrill, P. and McLaney, E. (2013), Accounting and finance for non-specialists. 8th ed. Harlow: Financial Times/Prentice Hall. ISBN: 9780273778035
Watson, D. and Head, A. (2012), Corporate Finance Principles and Practice. 6th edition, Harlow: Pearson ISBN: 9780273762874
Journals and newspapers
The financial and mainstream press can provide useful background reading, and can also be a useful source of case studies and financial information. Copies of published financial reports are available from companies themselves, or via The Financial Times (a free online ordering service is available).
Videos
A number of videos are available, covering the financial aspects of business.
Websites
The professional accounting bodies all have websites with lots of useful information and links.
The Financial Times website includes a free service providing copies of financial reports. Biz/ed provides a wealth of useful resources aimed at learners and teachers.
www.aat.co.uk The Association of Accounting Technicians
www.accountingtechnician.co.uk Accounting Technician magazine
www.bized.ac.uk provides case studies appropriate for educational purposes
www.ft.com The Financial Times
Wk Session Update Date Signature
1
2

3

4

5

6

7

8

9
10
11

12
13
14
15
16
17
18
19
20
21
Lecturer: Mr. George W. Muwonge
Campus: Wentworth House
Contact details: george@ukcbc.co.uk
Assessment:
The module will be assessed meeting all the LO as specified by the awarding body, Ed Excel.
Please read the instructions carefully while addressing the tasks specified.
Contribution: 100% of the module
Outline Details: Individual report approx 4000 words. Details enclosed in the assignment brief.
Teaching and Learning Activities
The module tutor(s) will aim to combine lectures with tutorial activities. This environment will provide opportunities for the student to understand the course material through case study and text and to apply it in a practical way. The intent is to facilitate interactive class activities, and discussion about the significant role of research in a global and local business environment.
2.3 Teaching Ethos
The college’s approach towards teaching and learning is simple and effective. The main aim of UKCBC is to assist learners in maximising their potential by ensuring that they are taught clearly and effectively. This will enable students to engage in the learning environment and promote success in both their academic studies and subsequent career.
2.3.1 Methods of Delivery:
LECTURES:
These will be developed around the key concepts as mentioned in the indicative course content and will use a range of live examples and cases from business practice to demonstrate the application of theoretical concepts. This method is primarily used to identify and explain key aspects of the subject so that learners can utilise their private study time more effectively.
SEMINARS:
These are in addition to the lectures. The seminars are designed to give learners the opportunity to test their understanding of the material covered in the lectures and private study with the help of reference books. This methodology usually carries a set of questions identified in advance. Seminars are interactive sessions led by the learners. This method of study gives the learner an excellent opportunity to clarify any points of difficulty with the tutor and simultaneously develop their oral communication skills.
CASE STUDIES: An important learning methodology is the extensive use of case studies. They enable learners to apply the concepts that they learn in their subjects. The learners have to study the case, analyse the facts presented and arrive at conclusions and recommendations. This assists in the assessment of the learner’s ability to apply to the real world the tools and techniques of analysis which they have learnt. The case study serves as a supplement to the theoretical knowledge imparted through the course work.
Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’ regulations. In this context the definition and scope of plagiarism are presented below:
Plagiarism is presenting someone’s work as your won. It includes copying information directly from the web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework form another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)
ASSESSEMENT
Unit: 2 – MANAGING FINANCIAL RESOURCES AND DECISIONS
Learning Hours: 60 Hours. Self-learning hours: 90 hours.
Course: HND Business – Level 4 CREDIT VALUE: 15 CREDITS
Term: Module Code: H/601/0548
Lecturer: Mr. George W. Muwonge Verifier: Mrs Sunita Kotta
Learners Name
Registration Number
Learners Declaration: I certify that the work submitted for this unit is my own:
Signed:
Hand out Date: Submission Date:
The Following Sections to be completed by the assessor:
Center Name: UKCBC
Center Number: 08640
Please note that the assessors signature below denotes conformation that he/she has in no way influenced the outcome of the assessment:
Assessors Name: George W. Muwonge
Assessors Signature:
Has the unit been Internally Verified? Y/N
Date of verification:
Internal verifiers signature:
Internal verifiers assignment brief:
Due Dates
Issue Date 27/02/2014 Due date 15th week
Due Task- 1 20/03/2014 Final Due Date for September 2013 intake 07/08/14
Due Task- 2 10/04/2014 Final due date for Jan 2014 intake 6TH WEEK OF THE ASSIGNMENT TERM
Due Task- 3 01/05/2014
Due Task- 4 22/05/2014
Unit Outcomes
Outcome Evidence for the criteria to pass. Assessors decision Internal verification decision. (agree, disagree)
TASK 1
The recession has left many people without jobs. Assuming that you have been laid off by your company and you have personal savings of £50,000. You have been contemplating what to do next and your friend has advised you to start your own business and be your own boss. You decide to carry out research on which business to engage in and how to raise the required finance. You are required to start a new business as a sole trader, or partnership or company with start-up capital of at least £100,000 - £1 million. Using supportive materials like books, websites, etc., and give a feedback of the findings on P1.1, P1.2, P1.3, P2.1, P2.2, P2.3 and P2.4. Answers without application to a specific business or appropriate examples will be referred
LO1. Understand the sources of finance available to a Business.
P1.1- Identify the sources of finance available to a business P1.1
(P,M,D) P1.1
(P,M,D)
P1.2- Assess the implications of the different sources P1.2
(P,M,D) P1.2
(P,M,D)
P1.3- Evaluate appropriate sources of finance for a business project P1.3
(P,M,D) P1.3
(P,M,D)
Summarized Feedback for Task 1(reflecting 1.1, 1.2, 1.3, 1.4, Pass merit and distinction.)
IV comments towards
Task 1

TASK 2
LO2. Understand the implications of finance as a resource within a business. P2.1- Analyse the costs of different sources of finance
P2.1
(P,M,D)
P2.1
(P,M,D)
P2.2- Explain the importance of financial planning P2.2
(P,M,D) P2.2
(P,M,D)
P2.3– Assess the information needs of different decision makers P2.3
(P,M,D) P2.3
(P,M,D)
P2.4- Explain the impact of finance on the financial statements P2.4
(P,M,D) P2.4
(P,M,D)
Summarized Feedback for Task 2 (reflecting 2.1, 2.2, 2.3, 2.4, Pass merit and distinction).
IV comments towards
Task 2
TASK 3
You are required to carry out a research by using supportive materials like books, websites, etc., and give a feedback of the findings on P3.1, P3.2, P3.3, and P3.4. The answer need to reflect the case study given in the assignment for this purpose. Answers without application to the case study given will be referred.
LO3. Be able to make financial
decisions based on financial
information P3.1- Analyse budgets and make appropriate decisions. P3.1
(P,M,D) P3.1
(P,M,D)
P3.2- Explain the calculation of unit costs and make pricing decisions using relevant information. P3.2
(P,M,D) P3.2
(P,M,D)
P3.3- Assess the viability of a project using investment appraisal techniques. P3.3
(P,M,D) P3.3
(P,M,D)
Summarized Feedback for Task 3 (reflecting 3.1, 3.2, 3.3 Pass merit and distinction).
IV comments towards
Task 3
TASK 4
For task P4.1 and P4.2 you are required to carry out a research by using supportive materials like books, websites, etc., to discuss the main financial statements (profit and loss, balance sheet and cash flow statement and compare appropriate formats of financial statements for different types of business (such as formats of financial statements for sole trader, partnership and limited company), and give a feedback of the findings on P4.1 and P4.2. Answers without application to main financial statements or formats of financial statements for different types of business and appropriate examples will be referred.
For task P4.3 you are required to carry out a research by using supportive materials like books, websites, annual reports, etc., to interpret financial statements of WM Morrison Supermarkets PLC using appropriate ratios given below and to compare its financial performance with that of J Sainsbury PLC for year 2011 and 2010. Answers without application to the case study will be referred.
LO4. Be able to evaluate the
Financial performance of a
business P4.1 Discuss the main financial statements P4.1
(P,M,D) P4.1
(P,M,D)
P4.2 Compare appropriate formats of financial statements for different types of business P4.2
(P,M,D) P4.2
(P,M,D)
P4.3 Interpret financial statements using appropriate ratios and comparisons, both internal and external P4.3
(P,M,D) P4.3
(P,M,D)
Summarized Feedback for Task 4(reflecting 4.1, 4.2, 4.3, Pass merit and distinction.)
IV comments towards
Task 4
Merit grades awarded M1 M2 M3 P1 P2 P3 P4
Distinction grades awarded D1 D2 D3 Resubmit :
Any other comments
Grade given by the Assessor:
Pass Merit Distinction
Assessors Signature: Date:
IV Grading Check: Comments if any:
Agree
Disagree Modify grade to
IV signature:
Date:
Students feedback:
Student Signature: Date:
Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’ regulations. In this context the definition and scope of plagiarism are presented below:
Plagiarism is presenting someone’s work as your won. It includes copying information directly from the web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework form another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)
Assignment
TASK 1 to TASK 4: You are required to follow the instructions as specified towards each task and support with a research by using supportive materials like books, websites, etc., and give a feedback on the findings by relating your arguments to relevant case studies and examples from a business organisation as specified in each task:
Task 1 and 2
The recession has left many people without jobs. Assuming that you have been laid off by your company and you have personal savings of £50,000. You have been contemplating what to do next and your friend has advised you to start your own business and be your own boss. You decide to carry out research on which business to engage in and how to raise the required finance. You are required to start a new business as a sole trader, or partnership or company with start-up capital of at least £100,000 - £1 million. Using supportive materials like books, websites, etc., and give a feedback of the findings on P1.1, P1.2, P1.3, P2.1, P2.2, P2.3 and P2.4. Answers without application to a specific business or appropriate examples will be referred.
Task 1
LO1 Understand the sources of finance available to a business
P1.1 Identify the sources of finance available to the new business you have chosen
P1.2 Assess the implications of the different sources of finance to your chosen business
P1.3 Select appropriate sources of finance for a business project you have chosen e.g. opening new store, developing IT system, buy new machines etc.
Task 2
LO2 Understand the implications of finance as a resource within a business
Using the same business you have chosen above
P2.1 Analyse the costs of different sources of finance
P2.2 Explain the importance of financial planning to the business organisation you have chosen
P2.3 Assess the information needs of different decision makers in your chosen business
P2.4 Explain the impact of finance on the financial statements of your chosen business

Task 3
Use the case study given below and carry out a research by using supportive materials like books, websites, etc., and give a feedback of the findings on P3.1, P3.2, and P3.3. Answers without application to the case study or appropriate examples will be referred.
LO3 Be able to make financial decisions based on financial information
P3.1 Analyse budgets and make appropriate decisions from the case study given below:
Easy electronics ltd has been trading for many producing IBM compatible motherboards or main boards which are sold to own equipment manufacturers, Easy personal and computer hardware sellers. Budgeted Profit and Loss Account and Cash Budget for the six months period ending 31/December 2013 is given below:
Easy Electronics ltd Budgeted Profit and Loss Account for the six month period ending 31December 2013.
£'000 £'000
Sales 35,830
Less: Cost of sales (18,878)
Gross profit 16,952
Profit from disposal of equipment 100
17,052
Less: Expenses
Administration cost (£2400 + £675) 3075
Distribution cost 3,481 (6,556)
Profit before interest and tax 10,496
Loan interest (500)
Profit before tax 9,996
Less: Corporation tax @ 23% (2,299)
Profit after tax 7,697
Easy Electronics ltd
Cash flow forecast for July to December 2013
Months
Receipts (in flows) Jul Aug Sep Oct Nov Dec
£'000 £'000 £'000 £'000 £'000 £'000
Receipts from cash sales 1,500 1,575 1,653 1,818 2,000 2,200
Receipts from Debtors 3,333 3500 3,675 3,859 4,245 4,669
Receipt from disposal of fixed asset 400
Total receipts (A) 4833 5075 5,328 6,077 6,245 6,869
Payments (out flows)
Payments to trade creditors 1,636 1,800 1,890 1,985 2,084 2,292
Salaries and wages 900 990 1,089 1,198 1,318 1,450
Variable overheads 800 880 968 1,084 1,214 1,360
Administrative cost (excludes monthly depreciation £100,000 for July - Sept and £125,000 for Oct - Dec ) 400 400 400 400 400 400
Distribution cost 400 440 484 557 640 960
Capital expenditure 3,000
Dividends 1,000
Corporation tax 900
Interest and other finance charges 500
Total payments (B) 4136 4,510 4831 9124 6156 7462

Net cash flow (surplus or (deficit)) C = (A-B) 697 565 497 -3,047 89 -593

Opening cash balance (D) 1000 1697 2262 2,759 -288 -199
Closing cash balance (C+D) 1697 2262 2,759 -288 -199 -792
Additional information:
(i) 30% of the sales are to be paid for by cash each month
(ii) Settlement for credit purchase is 30 days
(iii) The company offers a 30 days credit period
(iv) State any other assumptions made.
P3.2 Explain the calculation of unit costs and make pricing decisions using relevant information given below:
You are required to use the budgeted profit and loss account to explain how unit costs are calculated. It is estimated that Easy Electronics ltd will manufacture and sell 650,036 mother boards for the six months period ending 31st December 2013. The finance director of Easy Electronics ltd has asked you to evaluate a proposal to reduce the selling price by 10% from the current price of £55.12 per unit and as results sales are expected to increase by 20%. Cost of sales will also increase by 20%. All other costs will remain constant. You are required to make pricing decision based on the above information.
P3.3 Assess the viability of a project using at least two investment appraisal techniques using the case study provided below:
Easy Electronics ltd is considering diversifying into manufacturing Aluminium computer cases or housing from October 2014. The company’s cost of capital is 10%. The net cash flows from the project are given below.

Year Project A: Aluminium Housing
£’000
0 (8,000)
1 2,000
2 2,800
3 3,200
4 1,200
5 800
6 500
The project has a residual or scrap value of £400,000.
Year Discount factor @10% Discount factor @15%
0 1 1
1 0.909 0.870
2 0.826 0.756
3 0.751 0.658
4 0.683 0.572
5 0.621 0.497
6 0.564 0.432
LO4 Be able to evaluate the financial performance of a business
For task P4.1 and P4.2 you are required to carry out a research by using supportive materials like books, websites, etc., to discuss the main financial statements (profit and loss, balance sheet and cash flow statement and compare appropriate formats of financial statements for different types of business (such as formats of financial statements for sole trader, partnership and limited company), and give a feedback of the findings on P4.1 and P4.2. Answers without application to main financial statements or formats of financial statements for different types of business and appropriate examples will be referred.
P4.1 Discuss the main financial statements (the discussion should focus on basic form and purpose of main financial statements)
P4.2 Compare appropriate formats of financial statements for different types of business

P4.3 Interpret financial statements using appropriate ratios and comparisons, both internal and external using the data given below.
For task P4.3 you are required to carry out a research by using supportive materials like books, websites, annual reports, etc., to interpret financial statements of WM Morrison Supermarkets PLC using appropriate ratios given below and to compare its financial performance with that of J Sainsbury PLC for year 2011 and 2010. Answers without application to the case study given will be referred.

Particulars WM Morrison Supermarkets PLC J Sainsbury PLC
2011 2010 2011 2010
Turnover (£mil) 17,663 16,479 22,294 21,102
Profit (Loss) before Taxation 947 874 799 827
Return on Shareholders Funds % 17.55 16.13 14.19 15.25
Gross margin % 6.89 6.97 5.43 5.50
EBIT margin % 5.51 5.49 3.92 4.03
Profit Margin % 5.36 5.30 3.58 3.92
Berry ratio 3.95 3.79 3.09 3.04
Return on Capital Employed % 12.53 12.44 8.68 9.78
Return on Total Assets % 9.61 9.59 6.47 7.26
Net Assets Turnover (x) 2.34 2.35 2.42 2.50
Current ratio (x) 0.57 0.55 0.65 0.58
Liquidity Ratio (x) 0.24 0.24 0.35 0.31
Stock Turnover (x) 23.27 25.83 23.77 25.99
Debtor Collection Days 3.95 4.36 1.80 1.61
Creditors Payment Days 29.12 31.01 31.16 31.76
Gearing % 42.02 29.61 66.18 57.28
Interest Cover (x) 6.09 21.33 6.79 8.13
Earnings per share (£) 0.27 0.24 0.32 0.34
Dividends per share( £) 0.12 0.08 0.15 0.14
Market capitalisation (£mil) 7,236 7,083 5,846 6,257
Total Assets (£mil) 9,859 9,111 12,340 11,399
Working Capital -981 -948 -1,104 -1,221
Shareholders Funds (£mil) 5,397 5,420 5,629 5,424
Assignment Guidelines:
? Use a standard report structure, Word-process the report and use Normal script of a proper font size 12.
? Produce an academic report, detailing the above issues with a word limit of 4000 to 4500 words.
? Complete the title page and sign the statement of authenticity.
? The Assignment sheet should be attached in the front.
? Submit the document in a folder in the form of a file as well as a soft copy on the submission date.
? It should be uploaded on E-Learning platform before the deadline and submitted to -------- and sign the submission form of the college.
? Assignments submitted after the deadline will not be accepted unless mitigating and may be entitled for a late fee.
? Collusion and Plagiarism must be avoided.
? Start each answer on a new page and pages should be numbered. Highlight each question clearly.
? Include a Bibliography at the end of the assignment and use the Harvard referencing system.
? All work should be comprehensively referenced and all sources must be fully acknowledged, such as books and journals, websites (include the date of visit), etc.
? Try to give the page numbers, publishers' details and the year of publication
? In order to pass you need to address all the LO
? In order to get a merit you need to address the characteristics of Pass and then M1, M2,M3
? In order to get a Distinction you need to address the characteristics of Pass, Use a common format for the questions, for example:
? Introduction (analyze the question.)
? Underpinning Knowledge (write about the relevant theory/points)
? Applied knowledge(Data Analysis)
? Conclusions and Recommendations (summarizing the whole scenario keeping in view pass, merit, distinction criteria.)
Student feedback form with the Assessment Grid indicating their pass, merit and distinction:
Name: Registration Number:
Unit: Managing Financial Resources & Decisions
Outcomes/criteria: Indicative characteristics Possible evidence Feedback
LO1. Understand the sources of finance available to a business.
LO2. Understand the implications of finance as a resource within a business
LO3. Be able to prepare forecasts and budgets for the business
LO4. Be able to evaluate the financial performance of a business.
As per the assessment criteria specified for pass

Do
Do
Do Task 1
Task 2
Task 3
Task 4
Merit Description:
M. Identify and apply strategies to find appropriate solutions. . Relevant theories and techniques have been applied.
. Effective judgments have been made.
. Complex problems with more than one variable have been explored.
. An effective approach to study and research has been used.
M2. Select/ design and apply appropriate methods/ techniques. . A range of methods and techniques has been applied.
. A range of sources of information used.
. The selection of methods and techniques justified.
. Complex information/data have been synthesized and processed.
.Appropriate learning methods/ techniques applied.
M3. Present and communicate appropriate findings. . Appropriate structure and approach has been used.
. Logical and coherent arguments have been presented
. Technical language accurately used.
. A range of methods of presentation has been used.
. Familiar and unfamiliar contexts have been used.
. It is appropriate for familiar and unfamiliar audiences.
Distinction Description:
D1. Use critical reflection to evaluate own work and justify valid conclusion. . Synthesis has been used to generate and justify valid conclusions
. The validity of results has been judged
. Self-criticism of approach has taken place.
. Evaluation has taken place using defined criteria
. Realistic improvements have been proposed against defined characteristics for success.
D2. Take responsibility for managing and organizing activities. Autonomy/independence demonstrated
Substantial activities/projects or investigations have been planned, managed and organized.
The unforeseen has been accommodated.
The importance of interdependence has been recognized.
D3. Demonstrate convergent, lateral and creative thinking Ideas generate and decisions taken
Convergent and lateral thinking have been applied
Capacity for innovation and creative thought has been used.
Receptiveness to new ideas has demonstrated.
Unfamiliar contexts have been applied.