• Word count: 10676
• Level: AS and A Level

#### Sainsbury's Ratio Analysis

BTEC National Certificate in Business (e-Business) Unit 2 - Investigating Business Resources (Assignment Three) Task (P5 / P6) Sainsbury's - Ratio Analysis 2006 (£m) 2007 (£m) Sales 6,061 7,151 Cost of Sales 4,994 5,979 Net Profit 04 477 Gross Profit ,067 ,172 Current Assets 3,820 ,915 Current Liabilities 4,810 2,721 Stock 576 590 Average Stock 568 583 Debtors ---- ---- Creditors 2,094 2,267 Fixed Assets + Net Current Assets 2,747 9,576 Calculations Ratio Analysis 2006 2007 Profitability Gross Profit percentage of Sales = Gross Profit for year x 100 Sales for year ,067 x 100 6,061 = 6.6% ,172 x 100 7,151 = 6.8% Net Profit percentage of Sales = Net Profit for Year x 100 Sales for Year 04 x 100 6,061 = 0.6% 477 x 100 7,151 = 2.8% ROCE (Return on Capital Employed) = Net Profit for Year before interest rate and Tax x 100 Fixed + net Current Assets 04 x 100 2,747 = 0.8% 477 x 100 9,576 = 5.0% Liquidity Current Ratio = Current Assets Current Liabilities 3,820 4,810 = 0.8:1 ,915 2,721 = 0.7:1 Acid test Ratio/Liquidity Ratio Current Assets - Stock Current Liabilities 3,820 - 576 4810 = 0.7:1 ,915 - 590 2721 = 0.5:1 Efficiency/Working Capital Management Stock Turn over = Average Stock x 365 Cost of Goods Sold 568 x 365 4,994 = 14 Days 583 x 365 5,979 = 13 Days Debtors Collection

• Word count: 2868
• Level: AS and A Level

#### In this assignment I will be explaining in detail the importance of cash flow, working capital, costs, budgets and breakeven in selected business and also why it is used in selected businesses.

• Word count: 3751
• Level: AS and A Level

#### Sources of Finance available to Joseph Chamberlain Sixth Form College.

• Word count: 698
• Level: AS and A Level

#### For this task am going to explain the purpose of accounting in a business organisation.

Nassima Bouchelkia BND Business year1 ID NO, 317357 tutor, M Hamilton Unit 5, introduction to accounting P1) Introduction, For this task am going to explain the purpose of accounting in a business organisation. Accounting, Accounting is a process of identifying the business financial information, it also relates to keeping all financial records and transactions that relates to an organisation. It also known as measuring and interpreting the business economic information. Accounting used to indentify and represent the information to the internal users such as employees and management and external users such as the government and investors. The purpose of accounting, The purpose of accounting to an organisation is that it provides financial statements for the internal and external users which are used for different purposes such as making decisions. Accounting also used as guide to monitor the business income and expenditure. Additionally is also used to manage cash flow forecast that indicates to the business their current financial situation which will help that business to plan for the future Accounting comprises from two stages which are, Financial accounting, it relates to recording day t day transactions by using double entry bookkeeping. The financial accounting makes the entries in an account which know as

• Word count: 930
• Level: AS and A Level

#### Identifying and evaluating two proposed projects for Camerons Balloons - discuss the suitability of investment appraisal methods which are used and analysed on estimated cash flows.

Business studies Unit 11c Introduction In this report I will be identifying and evaluating on two proposed projects for Cameron's Balloons and I will discuss the suitability of investment appraisal methods which are used and analysed on estimated cash flows. Cameron's Balloons is the world's largest manufacturer of hot-air balloons, special-shaped balloons and hot-air airships. Cameron Balloons excels in all aspects of fabric technology from medical products, to fabric structures and inflatable buildings. Investment Appraisal is a technique with several methods which answers if an investment project is worthwhile or not. There are various types of investment appraisal methods and they are as follows: * Payback Period * Accounting Rate of Return (ARR) * Internal Rate of Return (IRR) * Profitability Index Net Present Value (discounted cash flow Companies invest because this will increase their productive capacity. Businesses buy equipment, machinery and buildings to increase their capacity which then means that businesses can meet demands which will generate their sales value and investment will also raise their efficiency and productivity. Cameron Balloons are trying to maintain as productive as possible by repeatedly re-assessing. Cameron Balloons are assessing whether an investment should be made in new production technologies. In

• Word count: 2569
• Level: AS and A Level

#### DIvidend Policies and Financing

.0 Introduction Dividend policy refers to the decision made by the company whether to retain the profits within the company, or they pay out the profits to the owners of the organization in the form of dividends (Garrison 2008). Once the company decides on whether to pay dividends, they may establish a somewhat permanent dividend policy, which may in turn impact on investors and perceptions of the company in the financial markets (Garrison 2008). What they decide depends on the situation of the company now and in the future. It also depends on the preferences of investors and potential investors (Garrison 2008). When deciding on the dividend policy, several factors such as legal constraints, contractual constraints, internal constraints, growth prospect, owner's considerations and market considerations have to be taken into account. Considerations taken into account can be incorporated in several dividend theories such as the residual theory of dividends, the clientele theory, the signalling dividend theory, the bird-in-the-hand theory and Modigliani and miller dividend theory. Manufacturing overseas can reduce costs due to its cheap labour costs but there are other considerations that have to be taken into account. There are pros and cons for manufacturing at overseas. Company's capital structure refers to the way a corporation finances its assets through some

• Word count: 5129
• Level: AS and A Level

#### Liability to capital gains tax (CGT)

Liability to capital gains tax (CGT) CGT is charged on net gains, i.e. total chargeable gains realised during a tax year after deducting total allowable losses realised in the year. Companies are subject to corporation tax on chargeable gains calculated according to modified CGT rules. Disposal of assets CGT can only arise on the disposal of an asset. Normally this means sale, but it could also mean gift or compensation for loss or damage to an asset. * The value on which the gain (or loss) is based is normally the consideration received. However, on gifts and certain sales, the open market value is used instead. * No CGT is payable on death. The beneficiaries of a deceased person's estate are treated as if they had acquired the assets of the deceased at their market value on death. Deductions Certain costs are allowable in computing chargeable gains: * The acquisition cost or market value on 31 March 1982 (if the asset was acquired before that date). * Costs of acquiring and disposing of the asset. * Expenditure on enhancing the asset's value. * Indexation allowance (see Capital Gains Tax: Indexation allowance). Losses Losses brought forward from previous tax years can offset gains. For individual taxpayers, such losses do not reduce net gains below £8,200, so the annual exemption is not wasted. (See Corporation Tax: Capital gains by companies.) Rate

• Word count: 1897
• Level: AS and A Level

#### Assignment 4: ethical issues. The community. P4 and M3

Terms of reference: In this assignment am going to continue describing the ethical issues within Primark and organisations in general. However in this assignment I will be describing the ethical issues concerning the community. I will also write a recommendation section which highlights how businesses like Primark are required to operate ethically within the community. Procedure: In order to complete this assignment, I am going to use the business book to collect information concerning the ethical issues that may occur in the community. I will also use the Primark Website to look for any information regarding the community. Introduction: Businesses have come to a point where they have realised that the community expects great performances from the business. They would like the business to contribute and anticipate in supporting the community by providing high quality of goods and services. By referring to the community we mean the local community, national and regional communities and the global communities. The community expects Primark to ethically attract the investors and the stakeholders to buy the products. This can be done by sponsoring specific workplace projects such as fashion shows for instance. Different communities have Different expectations for example: Local communities: The local community refers to the people who are surrounded by the

• Word count: 2803
• Level: AS and A Level