Online MFRD Assignment help

Online MFRD Assignment help







 LO1:

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

 

 
 LO2:

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

 
Assignment 1: Finance as a resource 

Assessment criteria coverage – (LO1 – 1.1, 1.2 and 1.3)

 

Assessment Criteria Coverage – (LO2 – 2.1, 2.2, 2.3 and 2.4)

 

Case study:

 

The following case study is taken from The CityA.M Newspaper

 

EasyJet founder will vote against Airbus purchase

Founder of budget airliner easyJet Stelios Haji-Ioannou has said he will vote against a management plan to buy 135 Airbus SAS jets, valued at $13.2bn, citing a lack of transparency to the transaction.

Haji-Ioannou, who owns just under 37 per cent of the company, said “it is my firm opinion that this is a good deal for Airbus and a bad deal for shareholders”. The decision will be put to vote on 11 July 2013.

I am not against replacing aircraft that have reached the end of their economic life. However, I am against buying aircraft that are three times more expensive than the ones I bought with my own money in the early 2000s.

Required:

 

Task 1 :

Prepare a report to the Board of directors at EasyJet  covering the following areas;

 

1.1 Identifies the sources of finance available to a business

 

1.2 Assesses the implications of the different sources

 

1.3 Evaluate appropriate sources of finance for a business project – Purchase of Airbus SAS Jets – per case study above

 

2.1 Analyses the costs of different sources of finance – To EasyJet if they decide to buy the aircraft

 

 

Report length – approximately 1000 words

 

 

Guidance:

 

Your report should include within the introduction of the report a brief review of the following areas;

 

·         How long has this organisation been in existence

·         How big is the organisation in terms of assets owned and controlled; scope of service provided.

·         Is the organisation a private or public company

 

The above review will help to set context for available sources of finance.

 

Task 2:

 

The chairman of the Board of directors at EasyJet has asked you to prepare a report on the following areas, for the incoming Non – Executive directors to the Board, who have very little financial knowledge.

 

2.2 Explain the importance of financial planning – For a company Like EasyJet

2.3 Assess the information needs of different decision makers – Managers at EasyJet (various levels of management – Strategic, Tactical and Operational managers), Loan and Equity providers to EasyJet.

2.4 Explain the impact of finance on the financial statements – Financial statements produced by EasyJet.

Guidance:

AC 2.2 – Financial planning entails things like preparing budgets (capital, revenue and cash), organizing appropriate sources of finance for the organization and how to invest these sources of finance. Financial plans should help managers to plan, control and monitor the activities of the organization. Here you could focus on the importance of cash budgets when dealing with expected cash flows for the organization or alternatively you could focus on the importance of planning the sources of finance the company will use when implementing its activities.

 

AC 2.3 – Here you need to assess the information needs of different decision makers. You could look at the information needs of different levels of management at an organization like EasyJet and possibly the information needs of investors or bankers who have or potential could lend finance to the organization. Think about why they would need this information, what are their claims on the organization.

 

AC 2.4 – Here you will be required explain the impact of finance on the financial statements, so for instance how different types of finance and their costs appear in the financial statements of a company like EasyJet.

 

The following financial statements for EasyJet can be used to help your explanation:









Grade descriptors:Indicative characteristicsContext for task
Merit:M1 identify and apply strategies to find appropriate solutions

 

 

 

 

 

 

 

 

 

M2 Select/design and apply appropriate methods/techniques

 

 

 

 

 

 

M3 Present and communicate appropriate findings

 

 

 

 
 Effective judgements have been made.

 

 

 

 

 

 

 

 

 

 

Demonstrate the use of a range of academic research sources.

 

 

 

 

 

 

 

The appropriate structure and approach has been used.
The report  correctly identifies appropriate sources of finance and sound judgements are made in relation to the selection of possible sources of finance for the case study organisation – EasyJet 

The report indicates that detailed and well-focused academic research has been carried out for both task 1 and 2. Harvard Referencing style required.

 

 

 

 

The report contains clearly defined objectives, rationale and recommendations for the intended audience concerning sources of finance.

The report presented in a clear, structured format for both task 1 and 2.

 

Appropriate technical

Language is used for both tasks.

 

 

 
 Distinction: 

D1 use critical reflection to evaluate own work and justify valid conclusions

 

 

 

D3 demonstrate convergent/lateral/creative thinking
  

Conclusions have been arrived at through synthesis of ideas and have been justified

 

 

Convergent and lateral thinking have been applied
  

Conclusions on the most suitable sources of finance for the case study organisation should be  justified

 

 

The recommendations made on likely sources of finance for the case study organisation include the identification of alternatives where appropriate. Innovation and creative thought have been applied to the possible sources of finance for the case study organisation.
 

 

 

 

 



LO4: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

 

 
 
Assignment 3: Analysing Financial Performance Assessment criteria coverage – (LO4 – 4.1, 4.2 and 4.3)

 4.1 Discuss the main financial statements

Here you are required to discuss the main financial statements produced by organisations which represent their financial performance over a period of time – generally 12 months.

 

·         Basic form of the financial statements – layout, elements found in each statement

·         Purpose of the financial statements collectively

·         Purpose of the financial statements individually

·         Accounting concepts and accounting standards which support the provision of the financial statements

·         Accounting cycle which provides accounting data to be used to produce financial statements.

 

Report format required – Word count (approximately 500 )

 

Task 2:

4.2 Compare appropriate formats of financial statements for different types of business.

The following financial statements have been prepared for different types of businesses – Limited Company, Partnerships and Sole Trader.

 

·         Limited Company (Table 1 – Income statement and Balance Sheet)

·         Sole Trader (Table 2 – Income statement and Balance Sheet)

·         Partnership (Table 3 – Income statement and Balance Sheet)

Task 2: Instructions:

Here you have been provided with financial statements for both a sole trader (Unincorporated Business), Partnership (generally unincorporated) and a company (Incorporated business) which you may use to help compare the formats for both a company and sole trader. Make note of the similarities and differences with explanations of these differences.

Your comparison report should be approximately 750 words in length.

 4.3 Interpret financial statements using appropriate ratios and comparisons, both internal and external.

 

Case study:

 

Standard Ltd manufactures and distributes washing machines. The Board of directors have been concerned for some time that their share of the market has been in decline, mainly as a result of industry – wide competition. They are also aware that to a certain extent the industry has become the victim of its own success as washing machines have become more reliable and durable and therefore do not need replacing as regularly.

Therefore the Board of directors are considering diversifying their production to include dishwashers. The board of directors have asked you to analyse the accounts of LCD Ltd – a company which manufactures dishwashers and to which they are considering making an investment in the not too distant future.

The Board of directors believe that the synergistic gains will include advantages over competitors from shared technologies, a greater distribution network, an increase in skilled employees and management, and a shared clerical and manufacturing headquarters

The financial statements for Standard ltd and LCD ltd are as

Using the financial statements and key accounting ratios you need to:

 

Prepare a report for the board of directors, requiring the following;

 

·         Analyse the financial performance of Standard ltd over the two year period – 2012/2013

·         Analyse and compare the financial performance of LCD Ltd – a company operating in the same area of business.

 

Your report should also include a brief description of the ratios used to analyse the performance of the organisations.

Report length – approximately 750 words.

The accounting ratios that will help your analyse are as follows:









Grade descriptors:Indicative characteristicsContext for task
Merit: 

M1 identify and apply strategies to find appropriate solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

M2 Select/design and apply appropriate methods/techniques.

 

 

 

 

 

 

 

 

 

 

 

M3 Present and communicate appropriate findings

 

 

 

 
  

Effective judgements have been made.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A range of sources of information has been used

 

 

 

Complex information/data has been synthesised and processed.

 

 

 

 

 

 

 

 

 

 

 

 

The appropriate structure and approach has been used.
  

Effective judgements have been made when dealing with task 3 – calculating ratios for both companies and providing recommendations to the Board.

Effective judgements have been made on the performance of the selected organisations – Standard ltd and LCD Ltd in Task 3.

 

 

 

A range of sources of information have been used when developing your answers for task 1 and Task 2.

 

Complex data from the financial statements has been effectively synthesised and processed to provide a detailed analysis of the performance of both companies – task 3.

 

 

 

 

 

 

 

 

An appropriate structure and approach has been used when discussing the financial statements for various business types.

 

Appropriate technical language/accounting terminology has been used in all learning materials and financial performance report.

 

 

 

 

 

 

 

 

 
 Distinction: 

D1 use critical reflection to evaluate own work and justify valid conclusions

 

 

 

 

 

 

 

 

 

 

 

D2 take responsibility for managing and organising activities.
  

Self – criticism of approach has taken place.

 

 

 

 

 

 

 

 

 

 

 

 

Autonomy/independence has been demonstrated.

 

 

 

 

 

 

 

 

 

 
  

The student has critically looked at the way the performance of the companies have been analysed. Suggestions as to other ways of analysing the performance of the companies have been looked at.

 

 

 

 

 

Autonomy and independence has been demonstrated by the learner throughout. Minimal tutor guidance and advice has been sought when accessing relevant information, financial statements and accounting principles and practices.
 

 

 

 
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