Business Finance And Economics Assignment
Word Count : 2500
Weight : 100%
Assignment task
The assignment covers economic factors that determine the competitive environment of an organization. The assignment involves the role and importance of accounting and financial reporting in terms of planning, control and decision-making. In addition, this assignment requires a numerical element that offers a solution to a set of key financial ratios and demonstrates an understanding of these in terms of organisational performance.
The assignment must include relevant theories, concepts and formulas from which a solution will be offered.
Business Finance And Economics Assignment
This assignment has been designed to provide you with an opportunity to demonstrate your achievement of the following module learning outcomes:
LO 1 – Explain how micro- and macroeconomics impact on the competitive environment of an organisation;
LO 2 – Demonstrate knowledge of the role of accounting within the organisation with respect to both reporting and decision-making aspects;
LO 3 – Explain the structure and terms used within the main financial statements;
LO 4 – Interpret management accounting techniques for planning, control and decision-making within the organisation;
LO 5 – Calculate the main accounting ratios and explain their significance in terms of organisational performance.
Business Finance And Economics Assignment
Task requirements
OVERVIEW
Written assignment, 2,500 words
To successfully complete this assignment, you are required to use the lecture materials from week 1 to week 4 and use references, including the core texts alongside other sources. Please ensure you use relevant theories, concepts, and formulas to address each of the four tasks.
DESCRIPTION OF THE TASKS – WHAT YOU ARE BEING ASKED TO DO
Written assignment – 2,500-word document 100% weighting
Task 1
You are required to define the two major branches of economics and discuss how they influence business performance (700 words)
Task 2
You are to explain accounting conventions and evaluate how important are they in the preparation of the three major financial statements (600 words)
Task 3
Using the information from the given financial statements, statement of financial position (balance sheets) and income statement (profit & loss accounts) in page 3, calculate and interpret the following ratios for XYZ Plc for the years ended March 31 2019 and 2020, respectively:
a) Operating Profit Margin
b) Inventory days
c) Payable period
d) Receivable period
e) Acid Test Ratio
f) EPS (Earnings Per Share)
Word count (550 words)
Task 4
Define management accounting and discuss why this is important for planning, control and decision- making within an organization. (650 words)
Business Finance And Economics Assignment
The Financial statements below are to be used for Task 3
| XYZ Plc – Statements of financial position (Balance Sheets) as at 31 March | 2019 | 2020 |
| £m | £m | |
| ASSETS | ||
| Non-current assets | ||
| Property, plant & equipment (at cost less depreciation) | ||
| Land & buildings | 386 | 430 |
| Fixtures & fittings | 134 | 170 |
| 520 | 600 | |
| Current assets | ||
| Inventories | 350 | 410 |
| Trade receivables | 240 | 280 |
| Cash at bank | 5 | – |
| 595 | -690 | |
| Total assets | 1115 | 1290 |
| EQUITY & LIABILITIES | ||
| Equity | ||
| £0.50 ordinary shares | 400 | 400 |
| Retained earnings | 275 | 245 |
| 675 | 645 | |
| Non-current liabilities | ||
| Borrowings – 9% loan notes (secured) | 250 | 350 |
| Current liabilities | ||
| Trade payables | 165 | 200 |
| Taxation | 22 | 4 |
| Short-term borrowings(all bank overdraft) | 3 | 91 |
| 190 | 295 | |
| Total equity & liabilities | 1115 | 1290 |
| Income Statements (Profit & Loss Accounts) for the year ended 31 March | ||
| 2019 | 2020 | |
| £m | £m | |
| Revenue | 2500 | 2750 |
| Cost ofsales | (1850) | (2375) |
| Gross profit | 650 | 375 |
| Operating expenses | (410) | (340) |
| Operating profit | 240 | 35 |
| Interest Payable | (18) | (20) |
| Profit before taxation | 222 | 15 |
| Taxation | (55) | (3) |
| Profit for the year | 167 | 22 |
Business Finance And Economics Assignment
Notes relating to the above Statements:
i. The market value of the shares of the business at the end of the reporting period was £3.00 for 2019 and £2.00 for 2020.
ii. Allsales and purchases are made on credit.
iii. At 1 April 2018, the trade receivables stood at £250 million and the trade payables at £210 million.
iv. A dividend of £40 million had been paid to the shareholders in respect of each of the years.
v. The business employed 14,000 staff at 31 March 2019 and 18,628 at 31 March 2020.
vi. The business expanded its capacity during 2020 by setting up a new warehouse and distribution centre.
vii. At 1 April 2018, the total of equity stood at £450 million and the total of equity and non-current liabilities stood at £650 million.
You must reference all information used in the written assignment, using the Harvard Referencing Guide
See attached grid for grade descriptors.
Referencing and research requirements
Please reference your work according to the Harvard style; you can access guidance on this here: WWW.XXX.COM
How your work will be assessed
Your work will be assessed on the extent to which it demonstrates your achievement of the stated learningoutcomes for this assignment (see above) and against other key criteria, as defined in the University’s institutional grading descriptors. If it is appropriate to the format of your assignment and your subject area, a proportion of your marks will also depend upon your use of academic referencing conventions.
This assignment will be marked according to the grading descriptors for Level 4
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