Accounting and Managerial Finance
| LSBF | |
| Module | Accounting and Managerial Finance |
| Assignment Title |
AMF Written Coursework Assignment |
| Assignment Type |
Individual Assignment |
| Word Limit | 3,500 – 4,000 |
| Weighting | 100% |
| Issue Date | 1st June 2020 |
| Submission Date | 6th July 2020 |
| Feedback Date | 19th – 21st August 2020 |
| Issued by (Assessor) |
Sherrihan Radi |
| Internal Verifier | Shahnaz Hamid |
| Plagiarism | When submitting work for assessment, students should be aware of the LSBF guidance and regulations concerning plagiarism. All submissions should be your own original work. You must submit an electronic copy of your work. Your submission will be electronically checked. |
| Harvard Referencing & Special Instructions |
The Harvard Referencing System must be used. The Wikipedia website must not be referenced in your work. You are allowed to upload only ONE attachment (e.g. an Excel sheet) in addition to your original assignment, unless there is a requirement for more than one document in the assignment brief. You must upload your assignment in PDF or Word document format. Your paper will not be graded if it is submitted in any other format. If you submit your assignment as a PDF version, please include the exact word count of the assignment on the title page. |
| Learning Outcomes |
On successful completion of this assignment you will be able to: 1. Summarise key principles, trends and tools in accounting and corporate finance. 2. Demonstrate effective approaches to the analysis of corporate finance structure and analysis of corporate financial statements. 3. Assess the value of practical value of models and theories on making decisions on corporate financing in context. 4. Critically evaluate the benefits of various types of financing for different kinds of organisations. 5. Utilize internal and external financial information to appraise business performance. |
| Grading Criteria | Postgraduate Grading Criteria for this assignment is available at the end of this document. |
| Your Task | Question one of the individual assignment is to perform a detailed financial analysis of a listed company using key financial ratios and analysis of company financial statements. Critical evaluation of the financial health of the company, including the company’s approach to working capital management, should be submitted. Question two of the individual assignment is to prepare a report to the investment board of Britvic Plc that recommends the appropriate funding choice for an investment project that will be evaluated based on the information provided below for question two. Important: The two components of this assessment are independent of each other. Question 1 – 50% Using the following link, https://www.britvic.com/media-centre/reports, download the annual reports of Britvic Plc from 2017 to 2019 and provide a critical analysis of the financial health of the company. The annual reports are in a consolidated format, and relevant financial statements can be found under the financial statements section. Do not forget to review the notes to the financial statements. (This report should be a minimum of 2,500 words of the total word count.) Required: a) Write a brief introduction of the company and the current mid-term (5 years) outlook. Maximum of 300 words. Be sure to include an analysis of the company’s share price to the present. [5 marks] b) Calculate Britvic Plc’s key financial ratios (for at least the 3 most recent years) and present them in the report in table or chart format. Key ratios must cover all categories: profitability, liquidity, efficiency, investment, and gearing (leverage) ratios. [15 marks] c) Interpret and assess the trend of the financial performance of Britvic Plc in the most recent year (the newest annual report) in comparison to the previous years as well as its competitor/industry. Make sure you justify any significant differences (trends) you observe here. [20 marks] |
| d) Critically assess the company’s approach to working capital management. [10 marks] Notes: The accompanying analysis should be detailed and provide reasons for any changes. Use both internal and external (financial and non-financial) information to support your analysis. Simply stating that a certain ratio has changed and by how much is not sufficient for analysis at this level. All equations and findings must be included in the report. [Total Q1: 50 marks] Question 2 – 50% Britvic Plc is currently evaluating a new project to produce canned coffee drinks. The project will require an initial outlay of £45m on production machinery and other costs. The project is expected to have a three-year life span, and the projected cash flows associated with the project are displayed in the below table: Table 1: Britvic Plc potential project’s cash flow information All figures in £’m 2021 2022 2023Sales 1,800 1,950 2,000COGS (990) (1,073) (1,100)Gross Profit 810 878 900Operating Expenses (73) (80) (82)EBITDAa 737 798 818Depreciation (7) (7) (7)EBITa 730 791 811Tax Expense (131) (142) (146)EBIATa 599 648 665CAPEXb 3 3 3Investment in Working Capital 0 0 (2)aEBITDA: Earnings Before Interest, Taxes, Depreciation and Amortisation EBIT: Earnings Before Interest and Taxes EBIAT: Earnings Before Interest and After Taxes For simplicity, taxes are calculated assuming no interest expensebAnnual capital expenditures in addition to the initial outlay, and assumed to cease at the end of the project |
