Sample Report On Advanced Finance for Decision Makers By Global Assignment Help

1. Sample Report On Advanced Finance for Decision Makers Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

2. TABLE OF CONTENTS Introduction ......................................................................................................................................4 Section 1: role of financial information and analysis ......................................................................4 Factors that assist in process of decision making in business ......................................................4 Significance of financial factors ..................................................................................................4 Characteristics and impact of business risks ................................................................................4 Financial priorities while decision making process ....................................................................5 Section 2: Financial Statements .......................................................................................................5 Comparison of accrual and actual cash flow approaches and its implication in decision making of Tesco and Sainsbury ...............................................................................................................5 Structure and content of final accounts ........................................................................................5 Interpretation of financial information in financial statements....................................................6 Differentiate between financial decisions regarding capital and revenue expenditure ................6 Calculation of financial ratios of Sainsbury for decision making ................................................6 Key requirements of published accounts of a public limited company .......................................8 Section 3: Accountability for Financial Reporting ..........................................................................8 Differentiation between governance, business ethics and accounting ethics for controls on business accountability ................................................................................................................8 Assessment of the role of finance director as a guardian of business ethics ...............................8 Analysis of key concepts and principles of corporate governance that will affect decision of business ........................................................................................................................................9 Examination of key national and international financial reporting standards which are relevant for the decisions of business ........................................................................................................9 Section 4: sources of finance ...........................................................................................................9 Explanation of difference between long-term financing needs and working capital needs for business ........................................................................................................................................9 Comparison of long term and short term financial sources ........................................................9 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

3. Importance of access to working capital for the continuation of business ................................10 Techniques for cash flow management and impact of cash flow on decision making process 10 Evaluation of methods for making decision of capital investment ............................................11 Explanation of benefits and drawbacks of off-balance sheet financing ....................................12 Section 5: Ownership Structures and Financial Performance........................................................13 Analysis of financial implication of different ownership structures of business .......................13 Analysis regulatory, legal environment and corporate governance of different ownership structures ....................................................................................................................................13 Comparison of stakeholders interest in decision making process .............................................13 Significance of Return on capital employed ..............................................................................14 Significance of EPS as a measure of business performance ......................................................14 Conclusion .....................................................................................................................................14 References ......................................................................................................................................16 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

4. Index of Tables Table 1: Financial ratios of Sainsbury .............................................................................................7 Table 2: Information of proposed project for capital investment ..................................................12 Table 3: Statement showing cumulative inflow .............................................................................12 Table 4: ARR of project for capital investment .............................................................................13 Table 5: NPV of project for capital investment .............................................................................13 Table 6: ROCE of Sainsbury of previous four years .....................................................................15 Table 7: EPS of Sainsbury of previous four years .........................................................................15 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

5. INTRODUCTION Finance is crucial aspect for success of business. Organizations are required to manage their financial resources in an appropriate manner to achieve their goals and objectives. For this aspect, they are required to understand relationship between risk assessment, financial information and business decision making (Sandford, 2014). Present project is focused on description of this financial aspect along with suitable practical examples. Report will include explanation of financial analysis and its significance in procedure of decision making. Sample Report on Advanced Finance for Decision Makers For Complete Assignment Kindly Contact us at: help@globalassignmenthelp.com Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

6. SECTION 1: ROLE OF FINANCIAL INFORMATION AND ANALYSIS Factors that assist in process of decision making in business Decision making is the complex procedure for all business organizations because it is affected by both financial and non-financial factors. Commercial entities are required to make justified decision by considering entire situation and criteria (Mandelbrot, 2013). Further, it should be on individual basis decision makers should also include people who will be affected by the decision. In addition to this, it should be supported by approaches like financial tools, theories and techniques. Selected option by business should be feasible to implement and it should be in accordance with objectives of business. On considering these factors, management can make better decisions for their organization to get successful. Significance of financial factors A decision is said to be appropriate if it is financially feasible and beneficial for the business. Organization should have sufficient financial source to generate funds for operational activities. In addition to this, the firm is required to assure that, decision will make position impact on the revenue and profitability of business (Miner, 2012). In situation, where organization is not able to manage financial factors in an effective manner then, risk for business will be enhanced. There is Significance of financial factors decision making for long term period because it possesses high risk. Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

7. Characteristics and impact of business risks Business risk can be defined as a possibility in which organization will not be able to earn their desired profit or they will experience loss. It is influenced by various factors such as competition, financial position, government regulation, costing structure etc (Melnikov, 2011). It is uncertain and fluctuating in nature due to which it has direct impact on decision making process of business. Some business risks are controllable to some extent while some are totally unpredictable. Business risk is related to expectation of owner as it arises from the nature, operation and conditions of business. Management of organization is required to consider these factors in the process of decision making to reduce uncertainty in future operations. Financial priorities while decision making process In order to manage business risks in a systematic way, it is important for management to set their financial priorities. For this aspect, they are required to prepare budgets to classify their expenditures on basis of its significance. Initially business should focus on essential expenditures by paying to suppliers. Further, they should concentrate on needs and expectations of employees to motivate to provide better performance (Ziemba and Vickson, 2014). Once creditors are paid, next financial priority of business should be payment to employees for their work. Remaining profit should be distributed in two parts, one part for owner and second part for retained earnings for future operational activities. SECTION 2: FINANCIAL STATEMENTS Comparison of accrual and actual cash flow approaches and its implication in decision making of Tesco and Sainsbury In accordance with accrual cash flow, transactions are recorded on the basis of income and expenditure incurred in the accounting year. On the other hand, in cash flow approach transactions are recorded only if it is in cash. Comparatively, accrual accounting approach shows more accurate financial position in comparison to cash flow system (Geltner and et.al., 2013). Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

8. Due to this aspect, organizations is considering accrual concept for making decisions. Accrual transactions show impact on profitability and viability of project while cash system shows impact of inflow and outflow of cash through decision taken by organization. Structure and content of final accounts 1.Balance sheet- This statement can be prepared in vertical or in the horizontal form. This statement is bifurcated in two parts i.e. assets and liabilities. It shows financial position of business on particular accounting year (Hausman, 2012). By considering this information, business can make long term decision such as expansion or change in operational activities for high market share. 2.Income statement- This statement is prepared in vertical form to show income and expenditure of accounting year to determine profitability of business. This statement is prepared by considering accrual approach. With this information, business can make decision regarding revenue transactions to enhance their sales and profitability. 3.Application of funds statement- This statement is prepared by business to represent allocation of financial resources on operational activities of business (Shiller, 2013). By considering the information, organization can restructure their application of funds in order to maximize their output. Interpretation of financial information in financial statements 1.Balance sheet- In accordance with the position statement of Sainsbury, improvement in financial performance can be noticed as value of company has been increased. On the other hand, reduction in assets of Tesco can be noticed (Annual report of Sainsbury, 2015). This aspect represents that, financial position of Sainsbury is comparatively better than Tesco. 2.Income statement- This statement shows profitability of business in a particular accounting year. In income statement of both companies there is positive change but Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

9. increase in Sainsbury is higher (Peters, 2011). It is because; company is able to manage their income and expenditure in a better way. Differentiate between financial decisions regarding capital and revenue expenditure Capital expenditure is made for long term period and it requires huge financial resources. On the other hand, revenue expenditures are made for short term period and it does not require excessive funding. Due to this aspect, decisions for capital expenditures are made after appropriate financial analysis in order to reduce risk. Further, decision for revenue expenses is made by considering current business situation. Calculation of financial ratios of Sainsbury for decision making Table 1: Financial ratios of Sainsbury Ratios Formula 2014 2013 Profitability ratios Gross profit 1387 1277 Operating profit 1009 882 Net Sales 22294 21102 (Gross Profit/ Net Sales) *100 6.22% 6.05% Gross Profit Ratio (Operating Profit/ Net Sales) *100 4.52% 4.18% Operating Profit Ratio Liquidity ratios Current Assets 4362 1901 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

10. Current Liabilities 2396 1201 Closing Stock 1005 987 Current Assets / current Liabilities 1.82 1.58 Current Ratio 1.4 0.76 Quick Ratio (Cu. Assets - Cl. Stock)/Cu. Liabilities Gearing ratios Debt 2384 2162 Equity 6005 5838 Debt Equity Ratio Debt/ Equity 0.39 0.37 Investment Ratios Market Value per share/ EPS Price earnings Ratio – 9.6 11.8 Adjusted* In accordance with the financial ratios of Sainsbury it can be noticed that, company had made improvement in their financial performance as there is positive change in ratios. In accordance with the investment ratios, company should focus on dividend policy of shareholders to provide them with better return (Financial ratio and Analysis, 2013). Further, the firm can make increase in debt portion in order to generate funds for operational activities. No Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

11. modification is required to be made in working capital structure because it is in accordance with the ideal ratio. Sample Report on Advanced Finance for Decision Makers For Complete Assignment Kindly Contact us at: help@globalassignmenthelp.com Key requirements of published accounts of a public limited company It is mandatory for public limited companies to publish their financial accounts along with their financial statements. With these accounts, stakeholders are able to interpret financial position of business to make viable decisions. For example, shareholders can assess return on investment to make decision regarding holding or divesting of shares. Creditors and lenders can assess their financial position to assure that, company is in position to repay financial obligation (Bangake and Eggoh, 2011). With this information, employees can explore future opportunities that will be available to them by working with entity. Further, government can assure that, company had accomplished their ethical responsibilities in an appropriate manner. Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

12. SECTION 3: ACCOUNTABILITY FOR FINANCIAL REPORTING Differentiation between governance, business ethics and accounting ethics for controls on business accountability Governance It includes set of regulations and legislation of government which influence business to perform their activities in a legal manner. By considering governance, it is essential for organization to involve government in their decision making process. Business ethics Business ethics are set of values and rules that involve responsibility of organization related to society, nation, environment and human being in their business policies. It helps firm to measure the comparison between right or wrong and good or evil (Flannery and Hankins, 2013). Accounting ethics It includes a range of moral value and judgment criteria which influence the organization maintain their financial and accountable practices in an ethical manner. Assessment of the role of finance director as a guardian of business ethics As per the ethical concept, it is essential for financial director to provide accurate, competent and timely information to their management and stakeholders related to sales, expenditure, revenue, profitability and overall margin (Day, 2005). With this, he or she needs to maintain financial document in a confidential manner as per the data protection law of government. Selling and buying important information related to business for enhancing the value of stock is a criminal offense is required to be eliminated by financial director of company. Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

13. Analysis of key concepts and principles of corporate governance that will affect decision of business Organizations are required to consider ethical norms at the time of decision making by considering the interest of stakeholders. Management of organization cannot make decisions which will contradict legislator provisions or ethical aspects (Coles, Lemmon and Meschke, 2012). For example, pricing policy should be set in accordance with quality and quantity of product. Further, organization should not sacrifice quality for higher profitability. Sample Report on Advanced Finance for Decision Makers For Complete Assignment Kindly Contact us at: help@globalassignmenthelp.com Examination of key national and international financial reporting standards which are relevant for the decisions of business Accounting and financial reporting standards are essential to be complied with commercial entities while making decisions for operations in the business.. Where company is Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

14. operating in more than one country is required to follow international accounting standards. Organizations are required to prepare financial statements by considering guidelines given in these standards in order to present reliable and accurate information. SECTION 4: SOURCES OF FINANCE Explanation of difference between long-term financing needs and working capital needs for business Long term financing needs arise for the capital project such as expansion or acquisition. On the other hand, working capital need arises for day to day activities of business. For long- term financing needs, high funds are required by business while working capital needs can be satisfied with lesser funds (Shiller, 2013). Long term financial needs are generally satisfied with equity or debt finance because internal sources cannot be increased in accordance with its requirements. However, internal financial sources are able to satisfy working capital needs of business. Further, financial charges for working capital needs are higher in comparison to long- term financing needs. Comparison of long term and short term financial sources Basis of comparison Long term finance Working capital finance Requirement For long term projects, such as launch For operational activities of of new project or acquisition of target business such as payment to company. suppliers or for making short term investment. Availability These sources are provided after These funds are easily completion of several formalities. In available to companies without addition to this, organization should any complex requirements. have good financial position to Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

15. generate these funds (Hausman, 2012). Security For availability of funds from these For these sources, organization sources commercial entity is required is not required to provide to provide security. security. Importance of access to working capital for the continuation of business Cash is blood of business thus it is required for all operational activities. Organization needs to generate sufficient funds for daily activities else they will face situation of deficiency in liquidity. Appropriate working capital also assists in strengthening solvency of business by providing them with uninterrupted flow of production (Day, 2005). Organization is in financial crisis in situation of adverse economic environment. Along with this, they can take benefit of available opportunities for higher profitability. Techniques for cash flow management and impact of cash flow on decision making process Cash flow management can be defined as systematic procedure used to balance inflow and outflow of cash & cash equivalents. In order to manage cash, organization can maximize the use of projected cash surpluses. Further, management can prioritize their expenditure in optimum utilization of available resources. Cash flow of business can also be managed by appropriate working capital management policies (Peters, 2011). For example, companies should select suppliers with high credit policies and can speed up the process of collection. Entities have also option to liquidate assets which are not providing economic benefit to them. With the applicability of above described techniques, management of businesses will be able to manage inflow and outflow of cash in an effective manner. Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

16. Evaluation of methods for making decision of capital investment For capital investment, high funds are required by businesses due to which financial managers are required to assure that; proposed project is beneficial for business. For this aspect they can use following methods- Payback period With this method, organization can determine duration in which amount of initial investment will be recovered. Net present value This is the most appropriate method to evaluate financial viability of capital investment as it considers all elements of project (Coles, Lemmon and Meschke, 2012). Organization is recommended to invest in project with positive inflow. Accounting rate of return Explanation of benefits and drawbacks of off-balance sheet financing Off-balance sheet financing is beneficial for the business as it is neither an asset nor a liability. In addition to this, it will also not affect borrowing capacity and reported numbers. However, this financing enhances manipulation in business because shareholders do not have appropriate information regarding debt of the company (Hildreth, 2004). There are also rebuttal claim in GAAP standards, but a more ethical approach shows that, there are other available choices that do not mislead. Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

17. SECTION 5: OWNERSHIP STRUCTURES AND FINANCIAL PERFORMANCE Analysis of financial implication of different ownership structures of business 1.Sole proprietorship- Such businesses are owned by single person and they are whole and sole responsible for entire activities. They are personally liable for debts, judicial judgments and obligations of business. 2.Partnership- In this structure, financial obligation is distributed between partners of the business (Theeke and Mitchell, 2008). However, liability of partner will be unlimited towards stakeholders of the organization. 3.Corporate entity- Company is an artificial person thus it has separate existence from their members. Due to this aspect, obligation of members is limited to the amount payable for capital contribution. Analysis regulatory, legal environment and corporate governance of different ownership structures Sole proprietors do not have legal obligations due to less responsibility towards stakeholders. However, they are obliged to operate in fair manner by considering legislator provisions. Individuals operating in partnership firms are required to operate in accordance with their partnership deed (Shahwan, 2008). Further, they are required to comply with provisions of partnership law. Comparatively, corporate entities have high responsibilities due to mandatory corporate governance. Comparison of stakeholders interest in decision making process Both managers and owners require growth of business in order to achieve their aims and Management of entity is focused on the growth and success of business while owners are interested in profitability (Lampe and Hofmann, 2013). Manager aims to enhance wealth of the Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

18. organization by enhancing its retaining earnings and value. On the other hand, owner of the business aims in enhancing their return on capital investment for maximum benefit. Sample Report on Advanced Finance for Decision Makers For Complete Assignment Kindly Contact us at: help@globalassignmenthelp.com Significance of Return on capital employed Return on capital employed shows value earned by business through the amount of capital investment. It is vital measure for the evaluation of performance of business. Higher ROCE represents optimum utilization of capital (Brooks and et. al. 2012). In accordance with the accounting terms, ROCE should be higher than cost of capital of the company. Significance of ROCE can be understood through following practical example- Table 2: ROCE of Sainsbury of previous four years Year ROCE (in %) 2011 10.1 2012 9.5 2013 9.2 2014 10.3 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

19. +/- (in %) - -0.6 -0.3 1.1 In accordance with the ROCE of Sainsbury it can be noticed that, there are not high fluctuations. In last year, there is increase of 1.1% in ROCE. This aspect shows that, company is improving their efficiency and they are able to earn high profits. Significance of EPS as a measure of business performance EPS shows return provided by company on each share to the shareholders. Higher EPS shows high profitability (Khamees, Al-Fayoumi and Al-Thuneibat, 2010). EPS of Sainsbury of previous years is as follows- Table 3: EPS of Sainsbury of previous four years Year EPS Reported +/- According to the EPS of Sainsbury it can be said that, there is continuous fluctuation in 2011 33.8 - 2012 31.5 -2.3 2013 31.5 0 2014 36.9 5.4 amount of earning per share however, it is continuously increasing. This aspect indicates that, organization is able to provide good return to their stakeholders as return on investment made by them. CONCLUSION In accordance with present report, it can be concluded that, finance is crucial aspect for business because it directly affects its profitability and opportunities of the growth. Organizations are required to manage these elements in a proper manner to enhance value of Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

20. business. For this purpose, they are required to use appropriate financial tools and techniques. In addition to this, the company should consider all the vital factors prior to making decision for business. Sample Report on Advanced Finance for Decision Makers For Complete Assignment Kindly Contact us at: help@globalassignmenthelp.com Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

21. REFERENCES Books and journals Bangake, C. and Eggoh, J. C., 2011. Further evidence on finance-growth causality: A panel data analysis. Economic Systems. 35(2). pp.176-188. Coles, J. L., Lemmon, M. L. and Meschke, J. F., 2012. Structural models and endogeneity in corporate finance: The link between managerial ownership and corporate performance. Journal of Financial Economics. 103(1). pp.149-168. Day, A., 2005. Mastering Financial Mathematics with Excel: A Practical Guide for Business Calculations. Financial Times/Prentice Hall. Flannery, M. J. and Hankins, K. W., 2013. Estimating dynamic panel models in corporate finance. Journal of Corporate Finance. 19. pp.1-19. Geltner, D. and et.al., 2013). Commercial real estate analysis and investments. Hausman, J. A., 2012. Contingent valuation: A critical assessment. Elsevier. Hildreth, W. B., 2004. Financial Management Theory In The Public Sector. Greenwood Publishing Group Managing Finance and Resources in Education, 2000. SAGE. Khamees, A. B., Al-Fayoumi, N. and Al-Thuneibat, A. A., 2010.Capital budgeting practices in the Jordanian industrial corporations. International Journal of Commerce and Management.20(1).pp.49–63. Lampe, K. and Hofmann, E., 2013. Financial statement analysis of logistics service providers: ways of enhancing performance. International Journal of Physical Distribution & Logistics Management. 43(4). pp.321-342. Mandelbrot, B. B., 2013. Fractals and Scaling in Finance: Discontinuity, Concentration, Risk. Selecta Volume E. Springer Science & Business Media. Melnikov, A., 2011. Risk analysis in finance and insurance. CRC Press. Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.

22. Miner, G., 2012. Practical text mining and statistical analysis for non-structured text data applications. Academic Press. Peters, J., 2011. The rise of finance and the decline of organised labour in the advanced capitalist countries. New Political Economy. 16(1). pp.73-99. Sandford, C. T., 2014. Economics of public finance: an economic analysis of government expenditure and revenue in the United Kingdom. Elsevier. Shahwan, Y., 2008. Qualitative characteristics of financial reporting: a historical perspective. Journal of Applied Accounting Research. 9(3). pp.192 – 202. Sample Report on Advanced Finance for Decision Makers For Complete Assignment Kindly Contact us at: help@globalassignmenthelp.com Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help provides best SQL Assignment Help to student of colleges and university at an affordable price.