代写assignment，代写Assessment,ACCESS TO HIGHER EDUCATION
Business Studies – Business Accounting
This assignment consists of 3 tasks. Please read each carefully.
Your written work should be typed using a plain font e.g. Times New Roman, Arial or Verdana, with 11 or 12 point and 1.5 line spacing. You should include your name and page numbering in the footer or header of your work.
Please make sure that if you do use any source material in your work that you acknowledge this in a reference list at the end of your work.
TASK 1 (Assessment Criteria 1 & 2):
Final Accounts and Stakeholders
Choose a business that you are familiar with as an example, or you can use an organisation such as Tesco, to explain the purpose of and why it is necessary for them to produce final accounts – 100 words.
You should include a comprehensive list of at least 7 stakeholders and discuss/assess their interests in either/both the profit and loss account and the balance sheet.
2
Task 2 (Assessment criteria 3):
Cash Flow
Dr Adrian Lund resigned as a doctor, and decided to set up his own firm, where he would make and sell toys. He did some calculations and made estimates of his potential costs and revenues.
Sales revenue is expected to fall by a quarter in September, and October is expected to bring the same revenue as September. It is predicted to rise to £1200 in November, and go up to £3000 in December due to the Christmas rush.
Rent of his shop will be £300 per month. Power bills, for heating and lighting are expected to be £50 per quarter (every three months) starting in August. The telephone bill is expected to be £25 per quarter, starting in September.
The cost of raw materials is expected to make up half the price of the toy, and so will be half of sales revenue.
Wage bills will be £100 per month, except in August and December, when they will be £200.
The bank loan that Dr Lund has taken out will cost him £65 per month for the first year of trading. It is realistic to expect that other expenses will be £40 per month.
Dr Lund has put in £350 in (all the money he has) to open his firm’s bank account on the 2nd of August, on the understanding that the bank will, under no circumstances allow any more than a £50 overdraft.
Answer the following questions:
1. Complete the cash flow forecast for Lund Toys - see next page (the sales for August and the opening balance at the beginning of August have been provided). Use a pencil for first draft!
2. Using this as an example, explain/comment critically on the purpose of cash flow management and to what extent a business should concentrate on Cash Flow rather than profit.
3. What is the most significant piece of information contained in Dr Lund’s cash flow forecast, and why?
4. Identify and explain four possible strategies that could keep Lund Toys in business.
3
Cash Flow for Lund’s Toys
August
September
October
November
December
£
£
£
£
£
Cash Inflow
Sales Revenue
1000
Other cash inflow
Total Inflow
.
Cash Outflow
Raw Materials
Rent
Power
Telephone
Bank loan
Wages
Other expenses
Total Outflow
Opening Bank Balance
0
Closing Bank Balance
4
TASK 3 Assessment Criteria 4:
Concepts and uses of ratio analysis
Patrick and Gillian O’Rourke have always wanted to own a farm. Patrick has worked on farms all his life and has a great deal of experience in mixed farming. Gillian, on the other hand, has been in publishing and recently sold her Gloucester-based publishing business for £350,000. They are now in a position to buy a small farm, although they expect to have to borrow some money to help fund the purchase. After several months of searching they have identified two possible targets. Both farms are private limited companies and both owners are keen for a quick sale.
Patrick and Gillian have approached an independent financial advisor for advice.
Read the following two case studies, you are required to prepare the following:
1. Calculate a range of appropriate accounting ratios.
2. Discuss/interpret all the information in the case studies and write a report from the advisor recommending which farm they should buy. Remember to include:
a. Information from case studies, including non-financial information.
b. Discussion/interpretation of financial information using analysis of ratios you have calculated
c. Description/critical comment of possible limitations there may be in your analysis.
d. A justified recommendation, based on your findings, to purchase one of the farms.
Your report should be between 750 - 1000 words.
5
CASE STUDY 1 - GLYME VALLEY FARM
Glyme Valley Farm is located in Glympton, Oxfordshire. It consists of 1,200 acres of arable land, farm buildings, agricultural machinery and a flock of 400 sheep. The current owner, 72 year old Reginald Enser, has recently been taken into care and the farm is up for sale so that the sale proceeds can be used to meet the cost of caring. The profit and loss account and balance sheet are shown below.
Glyme Valley Farm – Price £400,000
Profit and Loss account for Glyme Valley Farm for the year ended 31.12.09
£
Turnover
1,532,000
Cost of sales
(451,000)
Gross Profit
1,081,000
Overheads
(900,000)
Operating Profit
181,000
Non-operating income
2,000
Profit before interest
183,000
Interest
(152,000)
Profit before tax
31,000
Tax
(11,000)
Profit after tax
20,000
Dividends
(8,000)
Retained profit for the period
12,000
6
Balance Sheet of Glyme Valley Farm as at 31.12.09
£
£
Fixed assets
Buildings
610,000
Machinery
567,000
1,177,000
Current assets
Stocks
13,000
Debtors
15,000
Cash at Bank
1,500
29,500
Current liabilities
Creditors falling due in one year
(28,000)
Working capital
1,500
Long-term liabilities
Creditors falling due after one year
(800,000)
Net Assets Employed
378,500
Financed by:
Capital and reserves
Share capital
200,000
Retained profit
178,500
Capital employed
378,500
7
CASE STUDY 2 - COLD ASTON FARM
Cold Aston Farm is situated in Cold Aston, Gloucestershire, near to where Patrick and Gillian currently live. The farm has more land, 1,700 acres, but some of it is prone to flooding. As a result, yields from the land can be quite variable. The farm is quite run down. For example, the cattle sheds are derelict and the barn roof has been blown off. The agricultural machinery is also old and much of it needs replacing. The farm is owned by Roger and Davina Bartlett who inherited from their father two years ago. Roger and Davina have lost interest in farming and want to sell up. The profit and loss account and balance sheet are show below.
Cold Aston Farm –http://www.1daixie.com/liuxueshengzuoye/ price £450,000
Profit and Loss account for Cold Aston Farm for the period ended 31.12.09
£
Turnover
1,141,000
Cost of sales
(322,000)
Gross Profit
819,000
Overheads
(761,000)
Operating Profit
58,000
Non-operating income
2,000
Profit before interest
60,000
Interest
(15,000)
Profit before tax
45,000
Tax
(18,000)
Profit after tax
27,000
Dividends
(9,000)
Retained profit for the period
18,000
8
Balance Sheet of Cold Aston Farm as at 31.12.09
£
£
Fixed assets
代写留学生作业Buildings
610,000
Machinery
567,000
1,177,000
Current assets
Stocks
13,000
Debtors
15,000
Cash at Bank
1,500
29,500
Current liabilities
Creditors falling due in one year
(28,000)
Working capital
1,500
Long-term liabilities
daiCreditors falling due after one year
(800,000)
Net Assets Employed
378,500
Financed by:
Capital and reserves
Share capital
200,000
Retained profit
178,500
Capital employed
378,500