Cash Budget for Stoddard Ltd
Foundation Degree in Accounting & Finance Subject: Financial Planning Tutor: Linda Jordon Title of work: Cash Budget for Stoddard Ltd Name: Daisy So Cash Budget for Stoddard Ltd for six months to 1 November 2001 Jun Jul Aug Sep Oct Nov £ £ £ £ £ £ Cash inflows Credit Sales 7350 8750 10150 11550 Cash Sales 3150 3750 4350 4950 6000 6000 3150 3750 11700 13700 16150 17550 Cash Outflows Freehold Property 60000 Equipment 8000 20000 Vehicle 4000 Purchases 34375 10875 12375 13875 16500 Wages & Salaries 1000 1000 1000 1000 1000 1000 Overheads 400 400 400 400 800 800 Commission to salesmen 525 625 725 825 1000 73400 36300 12900 14500 16500 39300 Cash flow (70250) (32550) (1200) (800) (350) (21750) Opening Balance 80000 9750 (22800) (24000) (24800) (25150) Closing Balance 9750 (22800) (24000) (24800) (25150) (46900) Financial Position of Stoddard Ltd Based on the cash budget which I prepared on previous page, we can see Stoddard Ltd is having problem with their cash situation. It is mainly due to the long credit terms for their debtors, overstocking and the initial cash payment for the freehold property and equipment. The management should use the economic order quantity (EOQ) method to carry out their stock
FINANCIAL REPORT OF TESCO GROUP
FINANCIAL REPORT OF TESCO GROUP Module Title: FINANCIAL MANAGEMENT (APC308) Summative Assignment January 2008 Table of contents Introduction 3 Tesco's Financial Indices 4 Tesco's Capital Structure 8 Tesco's Dividend Policy 12 Security valuation of Tesco 16 Reference: 23 Introduction The aim of this report is to analyze the main indices of the performance of the financial management of Tesco Group, and to determine whether it is worthwhile to invest in the company's stock. Thus, in this report we proceed with our analysis by the following logic: (1) The first part of the report is to analyze the main financial indicators of Tesco Group. They are: gross profit margin ratio, gearing ratio, return on capital employed, earnings per share, and interest cover. (2) The second part is to determine whether the company is in its optimal capital structure. In this part, we use the most accepted model - MM model and WACC model to determine the relationship between the firm value and the capital structure of the firm. (3) The third part is intended to analyze the dividend policy of the company and what is indicated by the company's dividend policy; in this part, we use more technical methods to analyze the relationship between the firm value and the dividend policy and the future trend of the dividend policy. (4) The fourth part is aimed to evaluate the share price of
Explain why mergers can add value? What other factors should organisations take into consideration prior to an acquisition?
Explain why mergers can add value? What other factors should organisations take into consideration prior to an acquisition? When on the topic of mergers, many people, for various reasons differentiate between the terms merger, acquisition and take-over. In this essay I will use the terms interchangeably, as most commentators do, because in reality many combinations of companies do not fall into such neat categories, and to many the distinction is debatable. I will work round Glen Arnold's definition of a merger as the "combining of two business entities under common ownership" (Corporate Financial Management, P. 869) Economists classify mergers into three categories - horizontal, vertical and conglomerate. If the merger takes place between firms which serve the same markets, and produce similar, or substitutable products or services, e.g. banks, then it is deemed to be a horizontal merger. One of the motives for horizontal mergers would be the opportunity to reduce joint costs of production, distribution and marketing. And because some horizontal mergers occur for the enhancement of market power from the reduction of competition, they often attract the attention of the Office of Fair Trading and the UK Competition Commission. The second type of merger is vertical. This is when business units engaged in complementary stages of a production or service process
Boeing Corporation Analysis Paper
Boeing Corporation Analysis Paper Table of Contents Paper Objective Commercial Aircraft Industry Summary A. Industry Profile B. Typical Industry Competitive Strategy C. Porter Competitive Model Analysis D. Globalization of the Industry E. Importance of Information Technology to the Industry Boeing Company A. Boeing Company Profile B. Market and Financial Performance C. Competitive Strategy Statement D. Significance of Information Systems E. Strengths and Weaknesses of Boeing as a Company Bibliography Boeing Corporation Analysis Paper Objective of Paper The objective of this paper is to analyze the commercial jet aircraft industry and more specifically Boeing Corporation to better understand the significance of the role of information systems. At the present time the industry is dominated by two global players; Boeing and Airbus, and their rivalry is in many ways representative of two seemingly incompatible-not to say totally opposing- market philosophies. Boeing is the "free market" champion, while Airbus represents the "not so free" approach of the European Union's organized and government subsidized competition in the so called strategic markets. I Airliner Industry Analysis Industry Profile The worldwide market for commercial jet aircraft is primarily dependent on long-term trends in airline passenger traffic. And this trend can be
The aim of this report is to recommend the most appropriate strategic direction for Imperial Chemical Industries plc (ICI) to follow in order to meet the challenges of the forthcoming decade.
Aim of Report The aim of this report is to recommend the most appropriate strategic direction for Imperial Chemical Industries plc (ICI) to follow in order to meet the challenges of the forthcoming decade. Analysis including Value-Chain, PESTE, and SWOT will be conducted as well as a financial analysis so that a future vision, mission, goals and objectives can be developed. Strategic options available to ICI will then be evaluated and recommendations will conclude the report. Methodology The information needed to write this report has been gathered from various sources including lecture notes, the Internet, Keynote Reports, newspaper articles and ICI's current and precious annual reports. Assumptions This report is focussing upon ICI as a whole group unless otherwise stated. The share price is based on that of Thursday 2nd January 2003. Company Information Founded in 1926, ICI has recently undergone an £8bn re-engineering programme from being a heavy industrial chemical producer (capital based industry) to producing speciality chemicals.(knowledge based industry) (Pandya, 2002.)With nearly 40, 000 employee's world-wide, ICI is a main player in the global market, and continues to dominate the UK market. 'Products made by the company are the vital ingredients that add value to customers' products and processes' (Annual Report, 2001) 2001 saw the transformation
Select securities and make a portfolio based on different risk profile and expected return of each investor.
INTRODUCTION This report talks about one of the ways to select securities and make a portfolio based on different risk profile and expected return of each investor. The following areas have been covered as a part of this report. . Collection of data on securities which are listed on the Singapore Stock Exchange based on a given criteria. 2. Analyze the securities based on past data and investigating the relationship between the beta and the expected return of individual securities. 3. Obtain the expected return of each securities using Capital Asset Pricing Model. 4. Use linear programming to create a portfolio for investors with a low, medium and high risk profile from the securities to analyze the beta of securities. 5. Maximize the expected return on each of the portfolio based on the given constraints. OUR DATA . For our analysis on this project, we have selected securities from the Singapore Securities Exchange (SGX). The securities selected have a high market capitalization and are amongst the largest firms in their respective industry. 2. One very important consideration while choosing a particular stock was that it should have adequate liquidity. Each stock in our model portfolio has an average daily turnover of over one million shares. This is to ensure the investor has an easy exit option. 3. For our analysis, the price of each stock was adjusted for
Discussing the three Financial Statements.
Discussing the three Financial Statements Introduction The financial statements outline very simply information which will assist a business manager, assessing how the operation is progressing and whether it is in a profit or a loss situation. An analysis of the basic financial aspects of the business will help to review not only the past progress but also provide a yardstick for future planning and changes to the operations that may be necessary. It is also important to understand these financial statements and to be aware of their problems and limitations in order to evaluate the financial position of the business. Balance Sheet A balance sheet is simply a list of all the balance of the assets and the liabilities and the investments of the business. In a traditional way the assets are shown on the left-hand side of the page and liabilities on the right-hand side of the page. There are always two aspects to every event, which enable the balance sheet to balance; this is because the balance sheet is actually constructed from the accounting equation. There are numerous problems inherent in the balance sheet presentation and may cause difficulty in analysis. First, most assets are valued at cost; thus, one cannot determine the market value or replacement cost of many assets and should not assume that their balance sheet value approximates this current valuation. Secondly,
Understanding the Purpose and Functions of the U.S. Federal Reserve.
BUSINESS AND SOCIETY (BUS105) Understanding the Purpose and Functions of the U.S. Federal Reserve Kimberly R. Stokes Unit 5 - Financial Issues Instructor: Guido Fiermonte February 7, 2004 Understanding the Purpose and Function of the U.S. Federal Reserve System I. What is the Federal Reserve System (Fed) A. Beige Book? B. Who reports to the Fed . 12 districts and banks - major cities across the U.S. C. Seven categories included in the report D. Key information that might affect the Fed's decision to maintain or lower interest rates. . Consumer Spending 2. Labor Markets, Wages & Prices 3. Bank Lending II. Articles published after the January 2004 Beige Book report A. Current Economic Conditions & Interest Rates . BBH & Co. Insurance Asset Management 2. Associated Press (via www.boston.com) B. Factors the Fed will take into account to control inflation . Improving Economy 2. Increase in Consumer and Business Loans C. Most important factors in the Fed's interest rate decision . FOMC statement regarding an inevitable boost in the economy 2. Hopes that the job market will improve D. Why do economists have such varying opinions (when analyzing current economic conditions) . Understanding the financial data that is presented (i.e., reading in between the lines of FOMC's statement) 2. Two perspectives: Consumers and Businesses The Federal Reserve
Due to the several limitations of BSC, it is still not superior enough for companies to use BSC to compete in an increasingly changing environment. Thus, other methods have been proposed, such as The Performance Prism (
.0. At first, there was the budget For many decades, empirical research has documented extensive use of budgeting systems (Scarborough et al. 1991). Hence, budgeting had been considered, in the past, as an integral element of the management control system (Ahmad et al. 2003). .1. Resource allocation and coordination Budgets help to allocate resources and coordinate operations (Blocher et al. 2002). Different departments will make different decisions, believing that they are working in the best interest of the organisation (Drury 2000). Consequently, budgets help to align and reconcile these different needs for the benefit of the entire organisation (Drury 2004). Nonetheless, budgets encourage 'defend own turf' attitude (Hope and Fraser 2001). Departments are not willing to share their expertise, skills and information with others (Hope and Fraser 2001). Hence, the company should adopt an organic structure with an emphasis on learning and innovation (Marginson and Ogden 2005). .2. Motivation Budgets are a form of workforce motivation tool (Ahmad et al. 2003). It can influence managerial behaviour so that they would perform in-line with the corporate objective and not make sub-optimal decisions (Drury 2004; Hilton 2005). Alternatively, if the budget does not serve this purpose, then it will impose a threat rather than a challenge (Drury 2000; Hope and Fraser 2001).
SHARES AND THEIR TYPES
Well, before I start talking about shares I'd like to draw your attention to different types of companies. Individuals and groups of people doing business as a partnership can have limited or unlimited liabilities for debts. If a company has limited liabilities for debts it means that in case of its liquidation all the assets are sold to pay off all the creditors, but if the assets don't cover the debts, they remain uncover. In case if an unlimited company is wound up its owners may have to sell nearly all their possessions in order to pay their debts. There are also private limited companies and public limited companies. What is the difference? In case of a private limited company its shares are available only for a definite amount of people while shares of a public limited company can be bought by any person. And now let's proceed to shares. In simple words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a public limited company or can be purchased from the stock market. Professional investors buy shares in the hope of benefiting from a rising stream of income over the long term. Shares entitle their owners to vote at a company's Annual General Meeting and to receive a proportion of distributed profit in the form of a dividend (or to receive part of the company's residual value if