FINANCIAL DECISION MAKING
Task 1 of 3 – Article (AC1.1, 1.2, 1.3, 2.1 & 3.2)
Task 2 of 3 – (AC2.2, 2.3, 2.4, 3.1, 3.3, 3.4 & 4.3)
Task 3 of 3 – (AC4.1, 4.2 & 4.4)
After graduating, you worked as an investment banker before resigning due to stress. Although you enjoyed it, it was a stressful job with long days and hours. You recently had a child and your partner asked you to take a new job that would allow more time with your family.
Thanks to your background you obtained a job as a business columnist in a newspaper and you’ve been asked to write several feature articles.
Task 1 of 3 – Article (AC1.1, 1.2, 1.3, 2.1 & 3.2)
Instructions
Write an article in which you should
- Examine the factors (both financial and non-financial) that drive decisions making in business,
- Weigh up the business risks impacting on financial and business decisions
- Explain the differences between the accrual and cash flow approaches in financial reporting, and how it might impact business decision making
- Investigate techniques to manage cash flow
Submission and delivery:
- 1x article (circa 450 words)
Task 2 of 3 – (AC2.2, 2.3, 2.4, 3.1, 3.3, 3.4 & 4.3)
Instructions
Write an illustrated example using Poundland (the data is attached). You should:
- Using the data provided concerning Poundland as an example, describe the sections of the income statement and the balance sheet.
- Interpret the financial statements of Poundland
- Assess the value of EPS, ROCE and other overall indicators for the sustainability of Poundland
- Describe methods for Poundland to decide whether to invest or make capital expenditures
- Provide examples of the types of capital expenditure and revenue expenditures that could be incurred by Poundland
- Based on the data for Poundland, estimate its source of long-term financing and working capital financing
- Looking at the balance sheet, weigh the pros and cons of off-balance sheet financing.
Submission and delivery | |||
§ | 1x article (600 words + annotated Poundland data) | ||
Task 3 of 3 – (AC4.1, 4.2 & 4.4) | |||
Instructions | |||
§ | Draw a mind map of the main stakeholders, annotate it to identify contrasting interests between owners, | ||
§ | managers and shareholders | ||
Differentiate the governance, accounting ethics, legal and regulatory environments | between | ||
organisations listed on the FTSE and non-listed Private Limited company. |
Submission and delivery:
- 1x article (600 words + annotated mind map data