Sample Report on Managing Financial Resources And Decisions

1. Sample Report On Managing Financial Resources And Decisions Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

2. Table of Contents INTRODUCTION ..........................................................................................................................4 ASSIGNMENT 1: SOURCES OF FINANCE ...............................................................................4 1.1 Outline various sources of finance for Local Enterprise Agency .........................................4 1.2 Implications of sources of finance ........................................................................................6 2.1 Analyzing financial implications of source of finance .........................................................7 1.3 Evaluation of appropriate source of finance for the firm ......................................................8 ASSIGNMENT 2: DECISION MAKING THROUGH FINANCIAL STATEMENTS ...............8 2.2 Importance of Financial Planning ..........................................................................................8 2.3 Information need for different decision maker ......................................................................9 2.4 Impact of finance on financial statements of R Riggs Ltd ...................................................10 ASSIGNMENT 3: TECHNIQUES OF ACCOUNTING ...........................................................11 3.1 Analyze budgets for Yuri Ltd .............................................................................................11 3.2 Unit cost and pricing decision..............................................................................................11 3.3 Assess the viability of a project using investment techniques ............................................13 ASSIGNMENT 4 ANALYZING FINANCIAL STATEMENTS .................................................16 4.1 Main financial statements ....................................................................................................16 4.2 Comparison of appropriate formats .....................................................................................16 4.3 Ratios ...................................................................................................................................17 CONCLUSION .............................................................................................................................17 REFERENCES ..............................................................................................................................19 Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

3. INTRODUCTION Accounting plays a significant role in managing and controlling the financial aspect of the firm. However, accounting and finance has their own language with wide range of statements and techniques to evaluate and generate accurate outcomes for the managers. Managing financial resources is the most important feature in any business (Thomas, 2009). Furthermore, it gives feasible vision to the company and provides assistance in achieving desired targets without bearing any risks and uncertainties. Present research report assist in evaluating the sources of finance for local enterprise agency as well as with the help of various accounting techniques helping the top level management of R Riggs Ltd, Yuri Ltd and J & B associates to make feasible decisions for their future functioning and attain desired results. Furthermore, with the help of various investment appraisal techniques, project viability has been evaluated so that appropriate project can be selected and investment can be made. ASSIGNMENT 1: SOURCES OF FINANCE 1.1 Outline various sources of finance for Local Enterprise Agency Finance can be defined as the basic need for the firm to operate their business functioning. Management makes valiant efforts in order to generate funds for the company’s functioning so that they can run their business for long term purpose (Subramaniam, 2010). There are several sources of finance which can be undertaken by Local Enterprise Agency such as: External Sources:  Bank loan – It is an external source of finance, this can be acquired instantly by the firm and the repayment of loan is based on monthly installments. Due to these reasons management usually adopts this means of funds. Furthermore, there are some drawbacks of this sources is that in order to acquire bank loan Local Enterprise Agency has to deposit a collateral security equal to the amount of loan. However, company uses these sources of finance for meeting their long term needs and wants (Weetman, 2006). Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

4.  Issue of shares and debentures – For a public limited company this is the most feasible source of finance because through this firm can generate high capital for investment. the man advantage of this source is that company issue shares are not liable to pay any interest amount to shareholders. On the other hand, issuing debentures will assist them to pay only fixed amount even after generating higher profits (Wiedemann, 2009). Sample Report on Managing Financial Resources and Decisions For Complete Assignment Kindly Contact us at: help@assignmentprime.com  Leasing – Through leasing Local Enterprise Agency can acquire machinery by paying fix amount cash for specific period of time. Disadvantage of this source is that, acquired machinery is owned by the financial institution.  Angel inventors – Angle investors can be define as the source of finance through friends or relatives. Maintaining relations and influencing them to invest in business can generate high money (Wildavsky, 2006). Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

5.  Trade credits – For an organization trade credit is an essential tool for financing growth. In general terms trade credit is the credit extended to the firm by suppliers who allows company to buy now and pay later. Furthermore, when supplier charges interest on credit balance, then computing the cost of trade credit becomes much more easy because then finance director have to simply read the interest rate charge on the supplier’s account statements (Jakhotiya, 2002). Acquiring raw materials, goods or products on credit through suppliers can maintain the flow of funds within the organization. Management has to concentrate on maintaining relationship with its suppliers so that they can acquire goods of better quality at credit.  Venture capital – Venture capital can be termed as the method of raising funds for business and in return agreeing on paying amount of interest from profits on monthly basis (Enz, 2008). However, in other words it is a financial capital provided to easrly stage, high potential and growth startup companies. Furthermore, venture capital fund earns money by owning equity in the companies it invest in, which in terms have a novel technology or business model.  Grants – In general terms, this source is available in the form of soft funding from the government subsidiaries. Herein, company can raise funds by minimizing the tax for the business functioning.  Owner’s capital – It is the most important source of finance for starting a business. Although, it is difficult to generate large amount through this sources but it is necessary for the business enterprise to have capital from its owner. 1.2 Implications of sources of finance Table Error! No sequence specified.: Sources of finance Sources of funds Legal implications Dilution Ownership Once acquired money belongs to the firm, but company becomes of Risks of bankruptcy Bank loan As per the fluctuating interest government firm can In bankruptcy, Owners and partners have to case of rate of Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

6. acquiring this sources liable of paying settle amount. the loan interest as well as principle amount to the bank. Management of the firm has authority responsibility regarding (Sources of finance., 2013). Authority responsibility making regarding functioning is divided into the partners. Control of machinery is still financial institution. Issue of shares Can public offer or follow up public offer. issue Initial Company unable dividends shareholders. will to to be pay its all the and shares Investors Indulge specific show them in the accounting books of the firm. them ratio on and and of Have to authority to sell company assets to retain invested (Hofstede, 2013). decisions futu8re their amount Leasing Proper documentation is required between both the parties (Hill, 2007). It is extended to the firm by suppliers in order to buy now and pay later. Institution will take back the machinery. with the Trade credits After acquiring raw material becomes owner of the raw material as well as liable of paying fixed amount suppliers. After completing the entire legal formalities firm can use fund in any manner. Herein, company has the transfer. Supplier can claim in terms of bankruptcy. company to Venture capital For acquiring fund legal document has to be signed by both parties. In order to acquire grants company ahs to frame relationship government subsidiaries. Owner and business have separate entity concept. Institution may sell the fixed assets of the firm to amount. Company unable to payment of tax. regain Grants will be ownership make legal with Company can use the fund in any manner, once owner invested It considered being the bad debt for the owner. Owner’s capital Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

7. money company. in the 2.1 Analyzing financial implications of source of finance In order to acquire the sources of finance there are several cost that company has to bear. Following are the costs associated with all the above stated sources of finance.  Bank loan – It is easy to acquire loan from financial institution but for that company has to bear the cost of paying interest on monthly basis. Furthermore, company has to bear the cost of procedures and extra charges that banks demands (Jakhotiya, 2002). However, opportunity cost for acquiring loan is fluctuating interest rates that different banks charges. Secondly, there are some positive effect of tax charge on bank loan are as follows: (In the case of buying new Building for establishing office) Sample Report on Managing Financial Resources and Decisions For Complete Assignment Kindly Contact us at: help@assignmentprime.com Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

8. If property is not acquired/ constructed within three years from the end of financial year in which loan was acquired by owner, the interest benefits would be reduced to £30000. The interest set off is in addition to the deduction for municipal taxes and 30% standard deduction allowed while calculating income under the head of office property.  Venture capital – Indulging venture capital enhance the responsibility for management to pay share of profits. Furthermore, company has to incur high cost in fulfilling the legal obligations for venture capital. However, the opportunity cost for venture capital is that company can generate large funds easily and invest in the future functioning. Secondly, there are tax effects on venture capital such as: it is important for both outside investors and entrepreneurs to invest in new business because the reward sought is primarily an increase in the value of the equity investment.  Equity share capital – Issuing shares assist in generating large funds, but in order to issue company ahs to bear the of legal operations and thereafter making payment of dividend to the shareholders. Generating funds from public shares make company liable to pay the amount of tax on the generated finance. On the other hand, it is the best and appropriate method of generating funds and provides various opportunities cost to the firm.  Leasing – In spite there is long time that company get in repaying the payment of leasing but still company ahs to incur the cost of maintaining the machinery and equipment. In leasing, machinery is the liability for a firm (Coleman, 2007). There are several tax effects of leasing such as: A portion of company’s rental payments establishes equity in the leased property. You acquire very small part of property after making payment of a specified amount of rent. Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

9. Company’s rental payments substantially exceed the fair rental value of the property. 1.3 Evaluation of appropriate source of finance for the firm From the above study it can be stated that, every sources has its own implications of the functioning of firm. There are positive as well as negative implications but to fulfill the need in appropriate manner the best source of finance for Local enterprise Agency is bank loan. Furthermore, bank loan can be acquired in the most feasible manner by completing mere legal formalities (Muradoglu and Harvey, 2012). It is appropriate option for projects like building expansion for better future contingency. Moreover, financial institution does not take any ownership stake in the business in return for the money paid. In addition to that, interest charged on loan is tax deductable. Fixed amount of interest needs to be paid by the firm in the form of monthly installments. In case of small business enterprise, it is very essential to evaluate the rate of interest because fluctuating rate sometime may have very severe impact on the overall working capital of the firm. ASSIGNMENT 2: DECISION MAKING THROUGH FINANCIAL STATEMENTS 2.2 Importance of Financial Planning Planning is an essential element at each level of the business. This provide base to the workforce as well as direction to perform the tasks and duties to attain desired results. Financial planning plays a significant role for a business enterprise in forecasting and managing the economic resources of the firm to attain goals and objectives. Usually it is used in forecasting the future trends in the business (Nilsson, 2008). The main of finance director is to make plan regarding using available finance in the company so that inflow and outflow of funds can be managed effectively. Furthermore, this planning tool assists in providing outline for designing and implementing the pecuniary strategies within the business. The major aim of indulging fiscal Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

10. planning is to minimize the risks and uncertainties associated with business functioning to have fruitful future and sustainability in existing market. Financial planning assist in preparing major financial statements of the firm that can assist in making appropriate decisions for the future functioning. Therefore, it can be stated that financial planning plays a significant role in enhancing the overall functioning of a business enterprise as well as provide them appropriate direction to use their available monetary fund’s (Newell and Seabrook, 2006). Sample Report on Managing Financial Resources and Decisions For Complete Assignment Kindly Contact us at: help@assignmentprime.com 2.3 Information need for different decision maker There are several stakeholders associated with business functioning who are always anxious about evaluating information of business enterprise to make decisions. Following are the decisions makers:  Investors – They are interested in evaluating financial statements of the firm so that they can understand the risk inherent in and return generated on their investment as well as make decisions regarding future investments (Argouslidis, 2008). Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

11.  Shareholders – Shareholders require financial information the firm in order to evaluate the ability of firm in paying their dividends.  Employees – Through financial statements, employees identify the position of firm and make their decisions about retention, salaries and other benefits.  Lenders – Financial institution carefully evaluate the economic position of the firm in order to make decisions regarding their repayment of loan, interest and other charges associated with the money landed (Gallén, 2006).  Supplier and Trade creditors – They require information to understand the ability and capability of firm to make their credit payment on time or not. Furthermore, this information helps them to make decisions regarding whether outstanding amount due will be paid in specific duration or not. It also impacts on the relationship between firm and suppliers. 2.4 Impact of finance on financial statements of R Riggs Ltd According to the given case, there are following transactions took place for R Riggs Ltd within the accounting period. Every transaction has its own impact on the financial statements of the firm. Option 1: Obtaining a 2 year interest free loan of £5000 from A Alex Ltd oOn the basis of information given, If R Riggs Ltd acquire 2 year interest free loan of £5000 from A Alex Ltd then it will make impact on the balance sheet as it will increase the cash by £5000 every year as company is not liable to pay any interest amount till 2 years. Option 2: Obtaining 5 year loan of £10000 at 10% interest per premium oIf R Riggs Ltd chooses to obtain 5 year loan of £10000 at 10% premium per annum, then company will enhance their liabilities in the balance sheet as well as 10% interest charged will be deduct every month from profit and loss account for five years. Option 3: Obtaining one year trade credit for with amount of £1500 Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

12. oAccording this case, R Riggs Ltd will see increase in their working capital and along with that current liability will be enhanced. Option 4: Issuing additional 1000 shares at £ 3.50 per share oAdopting this option will increase the capital in the balance sheet by £3500. Along with that, it will also have impact on the liability side as the R Riggs Ltd has to make payment of dividends on those 1000 shares. Option 5: Selling office furniture worth £2000 at their net realizable value oSelling of office furniture will decrease the fixed assets for future use but will increase the cash in balance sheet of the business enterprise. Furthermore, there will be no effect on the profit of the firm because they are selling assets for either overcoming short term obligations or investing in future projects. ASSIGNMENT 3: TECHNIQUES OF ACCOUNTING 3.1 Analyze budgets for Yuri Ltd Table Error! No sequence specified.: Variance Table Particulars Budget Actual Variance Units sold 100000 75000 (25000) Materials 15000 22500 (7500) Direct labor 22500 24375 (1875) From the above presented budget of Yuri Ltd it can be stated that, there are huge variance found due to lack of efficiency in business operations. Furthermore, inefficiency in forecasting company was unable to budget units sold effectively which created huge variance for the firm. Variance of £25000 units suggest that Yuri Ltd management should focus on improving their marketing and promotional strategies. Secondly, lack of utilizing available resources impacted on the production of the spoons. In materials variance of £7500 can be identified, it means firm was not having proper pricing strategy. Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

13. Thirdly, labor was not used in effective manner as it increase the cost for firm by £1875 which can be termed as huge for a small scale business enterprise. Therefore, it can be analyzed that due to lack of strategies and financial planning Yuri Ltd suffers huge variances in their operations (Ballow, Burgman and Molnar, 2004). Therefore, company needs to involve economic planning and better forecasting techniques so that they can make better decisions regarding future functioning and attain desired results to attain sustainability. Budgetary control system: Figure 1: Budgetary control cycle 3.2 Unit cost and pricing decision Total cost for the job and cost per leaflet Table Error! No sequence specified.: Total cost for Job & Leaflet Particulars Amount (In £) Cost (In £) Direct cost Paper 204 * 3 612 Ink 2 liters * 9 18 Labor time 2 * 15 30 Indirect cost Production overheads and 2 * 55 110 machine utilization Selling, distribution and 2 * 20 40 administration overhead Total cost for the job 810 Cost per leaflet 891 Calculation of total production cost Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

14. Table Error! No sequence specified.: Total Production cost Particulars Amount (In £) Cost (In £) Paper 204 * 31 612 Ink 2 liters * 9 18 Labor time 2 * 15 30 Production overheads and 2 * 55 110 machine utilization Total production costs 770 Calculation of price quote by the company for the job According to the present scenario, printing company is manufacturing 100000 leaflets and incurring cost on per leaflet is 810. Therefore, the price that management should quote for the job = 810 * 10% + 810 = £891. Re-estimation of price if  The budgeted number of hour that the job requires is re-adjusted to 2.5 hours Table Error! No sequence specified.: Price when job requires 2.5 hours Particulars Amount (In £) Cost (In £) Paper 204 * 3 612 Ink 2 liters * 9 18 Labor time 2.5 * 15 37.5 Production overheads and 2.5 * 55 137.5 machine utilization Selling, distribution and 2.5 * 20 50 administration overhead Total cost 855 Total cost per leaflet 100000/855 85.50 Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

15. Total price per leaflet 940.5  The budgeted number of hour that the job requires is re-adjusted to 1.5 hours Table Error! No sequence specified.: Price when job requires 1.5 hours Particulars Amount (In £) Cost (In £) Paper 204 * 3 612 Ink 2 liters * 9 18 Labor time 1.5 * 15 22.5 Production overheads and 1.5 * 55 82.5 machine utilization Selling, distribution and 1.5 * 20 30 administration overhead Total cost 765 Total cost per leaflet 765/100000 0.00765 Total price per leaflet 0.0008415 3.3 Assess the viability of a project using investment techniques 1) Calculate for each project: Accounting rate of return of project A Average annual profit after tax = 35000+30000+40000+20000/4 = 17500 Average investment = Salvage value +1/2(cost of machine – salvage value) Average investment = 10000+1/2(50000-10000) = 30000 Accounting rate of return = 17500/30000*100 = 58.33% Accounting rate of return for project B Average annual profit after tax = 20000+20000+40000+36000/4 = 15000 Average investment = Salvage value +1/2(cost of machine – salvage value) Average investment = 10000+1/2(50000-10000) = 30000 Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

16. Accounting rate of return = 15000/30000*100 = 50% 2) Payback period: Table Error! No sequence specified.: Payback period of project A Year Project A (£) Cumulative (£) 1 35000 35000 2 30000 65000 3 25000 90000 4 20000 110000 Payback period of project A will be calculated in the following manner 1+ 500000- 350000 / 300000 = 1.5 years Table Error! No sequence specified.: Payback period of project B Year Project B(£) Cumulative (£) 1 20000 20000 2 20000 40000 3 24000 64000 4 36000 100000 Payback period of project B will be calculated as follows 2+ 50000- 40000 / 24000 = 2.41 years 3) Net present value: Table Error! No sequence specified.: NPV of project A Year Project A (£) PV Factor @ 10% Present Value (£) 1 35000 0.909 31815 2 30000 0.826 24780 Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

17. 3 25000 0.751 18775 4 20000 0.683 13660 Resale value 10000 Total Present Value (£) 99030 Initial Investment (£) 50000 Net Present Value (£) 49030 Table Error! No sequence specified.: NPV of project B Year Project B (£) PV Factor @ 10% Present Value (£) 1 20000 0.909 18180 2 20000 0.826 16520 3 24000 0.751 18024 4 36000 0.683 24588 Resale 10000 Total Present Value (£) 87312 Initial Investment (£) 50000 Net Present Value (£) 37312 4) The profitability index: Formula for calculating profitability index is Present value of cash inflow / present value of cash outflow PI of project A= 49030/ 50000 = .9806 PI of project B= 37312 / 50000 = .7462 2 Defining the internal rate of return Internal rate of return refers to the discount rate that is used in capital budgeting which helps in knowing and comparing the profitability of projects. Higher the internal rate of return of investment better it is. However, it is also called discounted cash flow rate of return. Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

18. Furthermore, the term internal refers to the fact that that its calculation does not incorporate environmental factors. 3 Advantage and disadvantage Payback period is very reliable technique and used to know the time period by which investment amount will be recovered and it is the major advantage. But this technique does not consider time value of money (Tijjani, field and Power, 2009). Net present value method is effective as it considers time value of money whereas it is difficult to calculate appropriate discount rate. ARR takes into consideration the complete time period of project but it does not reflects the fair value of project. So these are advantage and disadvantage of various investment appraisal techniques and it helps management to choose the investment proposal (Byrne, McAllister and Wyatt, 2011). Sample Report on Managing Financial Resources and Decisions For Complete Assignment Kindly Contact us at: help@assignmentprime.com 4 Recommendations After analyzing the two projects I would like to recommend project A and management can easily invest amount in that due to high profitability. Net present value of proposal is high Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

19. whereas payback period is less so firm can invest amount in it. This proposal will satisfy the ultimate objectives of firm. payback period of project A is less than B which shows management will get the invested amount back in 1.5 years in case if this proposal is chosen by company. ASSIGNMENT 4 ANALYZING FINANCIAL STATEMENTS 4.1 Main financial statements Various financial statements are prepared by firm which is discussed below: Balance sheet: It is a statement that contains assets and liabilities of firm. It helps management and other parties to gain information like number of fixed assets etc. Profit and loss account: It considers cost, income and expenses of firm at the end of period. It helps in knowing the performance of organization (Chan and Lee, 2003). Cash flow statement: It involves the inflow and outflow of cash from activities like operating, financing and investing. Shareholders and other parties can gain information regarding investment policies and government can examine the business policies. So these are the statements prepared by firm in order to know it’s financial and liquidity position. It directly provides information to various parties and in turn helps in taking important decisions. All these statements helps management in taking corrective actions for future and helps to grow (Kuei and Chyan, 2014). 4.2 Comparison of appropriate formats (a) It can be concluded that R Riggs is a sole proprietorship firm which is operated by a sole owner. J&B associates are a partnership firm in which profit and shares are shared in predetermined ratio. As a matter reporting requirement there is no such reporting framework assigned to sole proprietor and partnership concerns. However, for ease of measuring their capital appreciation or diminution finance manager financial statements concerning profit and loss account, balance sheet and partners capital account for partnership concerns. Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

20. For sole proprietorship, capital account is being maintained in the name of Mr. Riggs which consist of opening balance of proprietors capital, profit or loss made during the year and drawing during the year. The net balance in this account shows capital held as on particular date. For partnership concern J&B partners account are maintained in the individual's name depicting opening balance of partners capital, their share of profit or loss made during the year and drawing during the year. The net balance in this account shows capital held as on particular date. (b) Net profit of the R Riggs = (Profit after tax) / (Total sales revenue) * 100 = 23937 / 157165 * 100 = 15.2 % Net profit of J&B associates = (profit after tax) / (Total sales revenue) * 100 = 86065/ 363111 * 100 = 23.70% After calculating the profits of both firms it can be said that J&B associates is having more profit that R. Riggs. (c) Quick ratio of R. Riggs = quick assets / current liabilities = 18874 – 2400- 230/ 27525 = 2.87: 1 Quick ratio of J&B associates = quick assets / current liabilities = 140490 – 74210 / 27525 = 2.40: 1 Above calculation shows that liquidity position of J&B associates is stronger so firm is capable to meet its obligations when they will become due. 4.3 Ratios (a) Calculation of ratios (i) Gearing ratio = long term liabilities / capital employed *100 = 7880000 / 13688680 * 100 = 57.56 % Capital employed = fixed assets + working capital [13800000 + (478600 + 597680 – 1187600)] = 13688680 (ii) EPS = net profit after tax – preference dividend / No of equity shares = 750000 – 200000 / 5000000 =£0.15 Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

21. (iii) Dividend per share = Dividend paid / No of equity shares =200000 / 5000000 = £0.04 ( iv) Dividend yield = Dividend paid / share price= 0.04 / 0.80*100 = £50 (iv) Dividend cover =Earning available for dividend / Dividend announced = 750000 / 20000 = 3.75 times (vi) Price earnings ratio = market price per share / Earning per share = 0.80 / 0.15 = £5.33 (b) Report From the above calculation it is recommended to Jane to invest in Staton PLC as firm is making good profit and revenue from all the major operations. Price earnings of company are stable which provides opportunity to invest in such project. CONCLUSION From the above report it has become easy to understand the important of managing financial resources in firm as they play very important role and in turn helps organization to achieve its targeted goals. Various investment appraisal techniques are present that helps management to choose the right proposal which is having good profitability and amount invested can be recovered in lesser time. On the other hand by calculating different ratios firm can know its financial position and on the basis of that appropriate actions can be taken so that organization can achieve its targeted goals easily and in right manner. Toll Free No. +61 879-057-034 Mail Us: help@assignmentprime.com Assignment Prime offers Best quality MBA Assignment Help to student of colleges and university at an affordable price.

22. REFERENCES Books Enz, A. C., 2008. Strategic Management: Concepts and Cases. John Wiley and Sons. Hill, A. R., 2007. Strategic Financial Management. Bookboon. Hofstede, H. G., 2013. The game of budget control. Routledge. Jakhotiya, G., 2002. Strategic Financial Management. Vikas Publishing House Pvt Ltd. Thomas, G. H., 2009. Managing financial resources. Open University Press. Weetman, P., 2006.Financial and Management Accounting: An Introduction. Financial Times Prentice Hall. Wiedemann, L., 2009. Introduction in Financial Management. Lulu.com. Wildavsky, B. A., 2006. Budgeting And Governing. Transaction Publishers. Journals Argouslidis, C. P., 2008. Determinants of the speed of elimination decision making in financial services. Journal of Services Marketing. 22(3). pp. 237 – 254. Ballow, J. J., Burgman, R. and Molnar, J. M., 2004. Managing for shareholder value: intangibles, future value and investment decisions. Journal of Business Strategy. 25(3). pp. 26 – 34. Byrne, P., McAllister, P. and Wyatt, P., 2011. Precisely wrong or roughly right? An evaluation of development viability appraisal modeling. Journal of Financial Management of Property and Construction. 16(3). pp. 249 – 271. Chan, Y. S. and Lee, Y. S., 2003. An empirical investigation of symptoms of obsolete costing systems and overhead cost structure. Managerial Auditing Journal. 18(2). pp. 81 – 89. Coleman, L., 2007. Risk and decision making by finance executives: a survey study. International Journal of Managerial Finance. 3(1). pp. 108 – 124. Gallén, T., 2006. Managers and strategic decisions: does the cognitive style matter. Journal of Management Development. 25(2). pp. 118 – 133. Kuei, H. K. and Chyan , Y., 2014. An intellectual structure of activity-based costing: a co- citation analysis. The Electronic Library. 32(1). pp. 31 – 46. Muradoglu, G. and Harvey, N., 2012. Behavioural finance: the role of psychological factors in financial decisions. Review of Behavioural Finance. 4(2). pp. 68 – 80. Newell, G. and Seabrook, R., 2006. Factors influencing hotel investment decision making. Journal of Property Investment & Finance. 24(4). pp. 279 – 294. 22

23. Nilsson, A., 2008. Walking between decision models: analogising in strategic decision making. Qualitative Research in Organizations and Management: An International Journal. 3(2). pp. 104 – 126. Tijjani, B., field, M. G. S. and Power, M. D., 2009. The appraisal of equity investments by Nigerian investors. Qualitative Research in Financial Markets. 1(1). pp. 6 – 26. Sample Report on Managing Financial Resources and Decisions For Complete Assignment Kindly Contact us at: help@assignmentprime.com 23