Assignment Brief
Faculty of Design, Media & Management
Module Title: FINANCIAL DECISION MAKING Module Code: BM414
Assignment No/Title: ASSIGNMENT Assessment Weighting: 100%
Submission Date: Tuesday, 7th June 2022 before 2pm Feedback Target Date: 3 weeks
Module Co-ordinator/Tutor: Dr Ioannis Karfakis Course Area FDM
Submission Instructions:
This assignment is to be submitted electronically using LSST Connect
1.This assignment must be submitted electronically by 2pm on the submission date
2.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
3.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.
4.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.
5.You are reminded of the Universitys regulations on cheating and plagiarism. In submitting your assignment, you are acknowledging that you have read and understood these regulations.
6.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 2,500 words maximum is expected. Use the formal report format and include a Bibliography/ 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 Panini 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:
1.Explain the structure of and terms used within the financial statements
2.Apply management accounting techniques for planning, control and decision making within the organisation
3.Sources of finance
4.Demonstrate knowledge of the role of finance and accounting within the organisation with respect to both reporting and decision-making aspects
The Assignment Task:
Panini ltd is a medium-size business organisation specialised in making bread for super markets in the UK. The company started its operation in 2016. The company is planning to expand its operations due to success in recent years. The financial statements of Panini ltd are attached for your consideration and attention.
Required
TASK 1 (1500 WORDS)
1.1You are part of the Accounting and Finance team at Panini ltd. Write a report to the Management of Panini ltd, critically evaluating the importance of Accounting and Finance functions, duties and roles within a business organisation. (25 marks)
1.2Discuss the various sources of finance available to small and medium company for expansion purpose (15 marks)
TASK 2 (1000 WORDS)
Using the financial statements of Panini ltd calculate the ratios highlighted on page 4 and comment on the companys performance
(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:
The functions/roles/duties of accounting and finance team within Panini ltd 25%
Sources of Finance 15%
Ratio calculation 16%
Interpretation and analysis of the Ratios in relation to Panini ltd performance 34%
Presentation of your work (report format, clarity of expression, referencing etc.) 10%
TOTAL MARKS 100%
The summarised financial statements of Panini limited, a Public company engaged in making special bread for super markets, are shown below:
Statement of profit or loss for the year ended:
3 1 December
2018 31 December
2019
£000 £000
Sales revenue 10,000 11,500
Cost of sales 6,500 8,235
Gross profit 3,500 3,265
Operating expenses 735 960
Operating profit 2,765 2,305
Finance cost 200 210
Profit before tax 2,565 2,095
Tax 540 839
Profit for the period 2,025 1,256
Statement of financial position as at:
Assets 31 December 2018 31 December 2019
Non-current Assets £000 £000 £000 £000
Land and building 850 833
Plant and equipment 7,500 7,600
Furniture and fittings 200 180
8,550 8,613
Current assets
Inventory 350 674
Receivables 760 1,340
Bank 65 1,175 96 2,110
Total Assets 9,725 10,723
Equity and liabilities
Equity
£1 ordinary share capital 500 500
Share premium 1,000 1,000
Retained earnings 4,905 6,161
Revaluation reserves 350 450
6,755 8,111
Non-current liability
10% loan note 2,000 2,100
Current liabilities
Payables 920 495
Overdraft 50 970 17 512
Total equity and liabilities 9,725 10,723
