ACC9700 Financial Analysis Appraisal and Decision Making Assignment Questions

Main Report & Presentation

This presentation and report account for a total of 70% of the module. The remaining 30% of the module marks relates to the reflective writing submission.

Your submission will consist of the following:

Presentation: A ten-minute video presentation (+/- 1 minute), which should be of a professional format suitable for a management meeting. Visual aids e.g., PowerPoint should be used, and the students may choose to be visible or not in the presentation. The presentation should not only make appropriate recommendations but provide a clear justification for the recommendations.
Report: A 1,500-word report which is in a professional format, including an Executive Summary. The report is based around the same scenario as the presentation and should contain details and calculations which support the recommendations made in the presentation.

Part A

Prepare a report for the directors of BGC Ltd discussing the performance, liquidity, and solvency of the company over a minimum of the last two years of the financial information provided. Your report should include, but is not limited to, reference to your calculations of the following ratios:

• Gross Profit Margin
• Net Profit Margin
• Return on Capital Employed
• Current Ratio
• Working Capital Cycle
• Gearing
• Interest cover

Part B

Provide an analysis of the cash budget making recommendations for the directors to consider. Your recommendations should be fully justified. Your recommendations could relate to any opportunities or threats you have identified from your analysis of the cash budget and should include:

• An analysis of the opportunity/threat
• Implications for the company
• Alternative options for the organisation

Part C 

BGC Ltd is looking to the future and is keen to move the company forward. However, there is some disagreement within the directors of the company. An extract of the minutes from a meeting highlights some of the conversation which took place:

1. Gio: We need to recruit more cleaning staff and salespeople. Then we can take on more contracts and drive the business to be the market leader.
2. Bev: But our competitors are undercutting us. In order to compete, we have to continually reduce our prices.