MOD003319 Business and Financial Management Assignment 2026 - ARU London

MOD003319 Business Finance Assignment

TASK 1

For each transaction, decide whether it should be included in the cash budget for the business;

1. Anton invested £10,000 cash in the business on 1 January.

2. Anton plans to make drawings of £800 per month for each personal expenditure.

3. Anton purchases a computer for his personal use at a cost of £499 in January.

4. Anton also purchased a computer in January for business purposes at a cost of £720 cash.

5. He plans to buy a motor vehicle for £3,200 cash on 1 March, for business purposes.

6. Sales estimates are as following:

• January = £4,200
• February = £ 3,200
• March = £2,950

7. Sales are made 30% cash and 70% on one months’ credit.

8. Purchases will be made for cash as follows:

• January = £ 2,800
• February = £1,500
• March = £1750

9. Other expenses are estimated as follows:

• Electricity £285 payable at the end of the quarter.
• Telephone costs of £120 per month, payable at the end of each month by cash.
• Fuel cost for motor vehicle estimated to be £65 per month, payable in the same month.

TASK 2

2.1 What is Accounting Equation and explain why the accounting equation will always work? Also, provide an example with your explanation.

2.2 What benefits might a company gain from having its shares listed on a stock exchange?

2.3 Who do you think might be considered to be stakeholders in a large listed company like Marks and Spenser?

2.4 Is the profit that a business makes a reliable indicator of its cash balances? What are the differences between Profit and Cash?