MOD003319 Business Finance

ASSIGNMENT INSTRUCTIONS

WRITING YOUR ASSIGNMENT:

• This assignment must be completed individually.
• You must use the Harvard referencing system.
• Your work must indicate the number of words you have used. Written assignments must not exceed the specified maximum number of words. When a written assignment is marked, the excessive use of words beyond the word limit is reflected in the academic judgement of the piece of work which results in a lower mark being awarded for the piece of work (regulation 6.74).
• Assignment submissions are to be made anonymously. Do not write your name anywhere on your work.
• Write your student ID number at the top of every page.
• Where the assignment comprises more than one task, all tasks must be submitted in a single document.
• You must number all pages.

SUBMITTING YOUR ASSIGNMENT:

In order to achieve full marks, you must submit your work before the deadline. Work that is submitted late – up to five working days after the published submission deadline - will be accepted and marked. However, the element of the module’s assessment to which the work contributes will be capped with a maximum mark of 40%.

Work cannot be submitted if the period of 5 working days after the deadline has passed (unless there is an approved extension). Failure to submit within the relevant period will mean that you have failed the assessment.

Requests for short-term extensions Requests for short-term extensions will only be considered in the case of illness or other cause considered valid by the Director of Studies Team. Please contact DoS@london.aru.ac.uk. A request must normally be received and agreed by the Director of Studies Team in writing at least 24 hours prior to the deadline. See rules 6.64-6.73: http://web.anglia.ac.uk/anet/academic/public/academic_regs.pdf

Mitigation: The deadline for submission of mitigation in relation to this assignment is no later than five working days after the submission date of this work. Please contact the Director of Studies Team       -                 DoS@london.aru.ac.uk.    See                    rules     6.112                                     –                     6.141:

http://web.anglia.ac.uk/anet/academic/public/academic_regs.pdf

TASK 1

For each transaction, decide whether it should be included in the cash budget for the business; prepare a cash budget for the three months ending 31 March, 2022. (30 Marks)

1. Anton invested £10,000 cash in the business on 1 January, 2022.
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

1. Sales are made 30% cash and 70% on one months’ credit.
2. Purchases will be made for cash as follows: January = £ 2,800

February = £1,500 March = £1750

1. 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 (70 Marks)

2.1 What is Accounting Equation and explain why the accounting equation will always work? Also, provide an example with your explanation. (10 Marks)

2.3 Who do you think might be considered to be stakeholders in a large listed company like Marks and Spenser? (20 Marks)

2.4 Is the profit that a business makes a reliable indicator of its cash balances? What are the differences between Profit and Cash? (20 Marks)

MOD003319 Business Finance