Managing Financial and Statistical Data

GLYND?R BUSINESS SCHOOL

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ASSIGNMENT FRONT SHEET

Student Name:

Certification : I certify that the whole of this work is the result of my individual effort and that all quotations from books, periodicals etc. have been acknowledged.

Student Signature:

Date:

Student Registration Number:

Student email address :

Programme :

Year/Level : 4

Academic Year : 2011/2012

Semester : 2

Module title : Managing Financial and Statistical Data

Assignment no. : 2

Module code: BUS 409

Word guide: 2,000 maximum

Percentage Weighting of this assignment for the module: 50

Issue date : 6th February 2012

Return date : May 10 2012

Lecturer : John D Mortimer

Second marker :

Notes for students :

1. Hard copy of assignment should be stapled in the top left corner and submitted to the Business School.

2. Electronic copy of assignment should be submitted through the Turnitin software.

3. 10% of marks are awarded for satisfactory use of language and/or good presentation.

4. 5% of marks are awarded for satisfactory referencing and/or presentation of a bibliography where either is required. Note that all referenced work should be obtained from credible sources.

5. Students should ensure that they comply with Glyndwr University’s plagiarism policy.

6. Students should make correct use of the Harvard referencing method.

Learning Outcomes Tested in this Assignment :

1. Identify the sources of finance available to business and understand the management of finance as a resource within the business;

2. Analyse the financial performance of businesses.

Overall Comment :

Mark (%)

Would students please note that achievement of the learning outcomes for this assessment is demonstrated against the assessment criteria shown below (which are not necessarily weighted equally). All marks/grades remain indicative until they have been considered and confirmed by the Assessment Board

Assessment Criteria

Grade Awarded

Grade Available

1

Requirement (a)

50%

2

Requirement (b)

50%

3

4

5

6

Additional Comments from Second marker or External Examiner (if required) :

BUSINESS UNDERGRADUATE

Assessment And Grading Criteria for this assignment

Assignment Content Grading

This assignment will be graded as a Pass, Merit or Distinction. A Pass is awarded for the achievement of all outcomes against the specified assessment criteria. Merit and Distinction grades are awarded for higher level achievement.

Pass

A Pass grade is achieved by meeting all the requirements defined in the following assessment criteria:

(copied from Unit Specification)

1. Identify the sources of finance available to business and understand the management of finance as a resource within the business;

Merit

Distinction

In order to achieve a Merit the student must:

In order to achieve a Distinction the student must:

· use a range of methods and techniques to collect, analyse and process information/data

· check validity when collecting, analysing and processing complex information/data

· apply and analyse detailed knowledge and skills, using relevant theories and techniques

· evaluate and synthesise relevant theories and techniques to generate and justify valid conclusions

· coherently present and communicate work using technical language accurately

· show an individual approach in presenting and communicating work coherently, using technical language fluently.

LEARNING OUTCOMES

3. Identify the sources of finance available to various business entities and understand who uses financial statements and why.

4. To understand the content of basic financial statements and be able to analyse the financial performance of a business using various financial indicators.

Aberconwy Ltd.

The Balance Sheet of Aberconwy Ltd. as at 31st December 2010, and the Profit & Loss Account for the year ended on that date and the previous year are summarised below:

Balance Sheet as at 31st December 2010

2010 2009

Fixed Assets £ £ £ £

Land and Buildings ………………………………….. 46,000 20,000

Plant and Machinery – Cost …………………….. 75,500 35,000

Less Depreciation …………………………………… 22,500 53,000 15,000 20,000

99,000 40,000

Current Assets

Stocks……………………………………………………. 61,000 50,000

Debtors ………………………………………………….. 36,000 31,500

Cash at Bank …………………………………………. – 13,500

97,000 95,000

Creditors: amounts falling due within one year

Bank Overdraft……………………………………….. (12,000) –

Trade Creditors ………………………………………. (26,500) (23,500)

Corporation Tax………………………………………. (13,500) (8,500)

Proposed Dividend …………………………………. (10,000) (7,000)

(62,000) (39,000)

Net Current Assets……………………………………….. 35,000 56,000

Total Assets less Current Liabilities………………. 134,000 96,000

Creditors: amounts falling due after more than one year

12% Debentures……………………………………… (25,000) –

109,000 96,000

Capital and Reserves

Ordinary Share Capital…………………………….. 85,000 85,000

Profit & Loss Account………………………………. 24,000 11,000

109,000 96,000

There were no sales of fixed assets during 2010.

Profit & Loss Account for the year ended 31st December 2010

2010 2009

£ £

Sales ……………………………………………………………….. 426,000 384,000

Cost of Sales…………………………………………………….. (264,000) (250,000)

162,000 134,000

Expenses (including depreciation)………………………… (125,500) (113,200)

Net Profit before tax ………………………………………….. 36,500 20,800

Taxation …………………………………………………………… (13,500) (8,500)

Net Profit after tax……………………………………………… 23,000 12,300

Proposed Dividend…………………………………………….. (10,000) (7,000)

Undistributed Profit…………………………………………….. 13,000 5,300

Required

(a) Calculate no more than five comparative ratios to focus attention on Aberconwy’s profitability, efficiency, liquidity, gearing and investment;

(b) Prepare a brief report to the Directors of Aberconwy Ltd, based on your findings in part (a) above. Suggest any actions that they should consider and also review the alternative sources of finance available to them both in the short term and long term should they need it.

Contextualised grading criteria

Referral

Weak reports which do not display a basic knowledge and understanding of Aberconwy’s financial context.

Pass

Adequate reports which display a basic knowledge and understanding of Aberconwy’s financial context.

Merit

Well presented reports which display understanding and knowledge of Aberconwy’s financial context. Some analysis and evaluation is shown.

Distinction

Very well presented reports which show a thorough understanding of Aberconwy’s financial context. Answer shows ability to collect, analyse, evaluate and present information coherently and fluently.