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Business Finance Assignment

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Added on  2020-01-07

Business Finance Assignment

   Added on 2020-01-07

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BUSINESS FINANCE
Business Finance Assignment_1
Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1 ...........................................................................................................................................11.1 Difference between profitability and cash flow and its impact on company's accounts.......11.2 Explain the concept of working capital management .........................................................31.3 Steps should be taken for improving the working capital of the firm ..................................4TASK 2 ...........................................................................................................................................52.1 understanding of Stages of the capital budgeting process and capital investment appraisalmethods ......................................................................................................................................52.2 The potential application of these methods to the projects under consideration .................72.3 Analyse the most appropriate method used in this case .......................................................7CONCLUSION: ..............................................................................................................................8REFERENCES................................................................................................................................8
Business Finance Assignment_2
Business Finance Assignment_3
INTRODUCTION Business finance consists of all the activities related to the finance and how company canmanage its money and and other assets in a manner so that they can effectively achieve theorganisation goals. Business finance includes all the accounting methods, financial terminologiesand debt management(Hillier, Grinblatt and Titman., 2011). Every company has the separatefinance department which takes the investment decisions, budget decision and other importantfinancial decision for the company. The main aim to understand the principal of business financeis to earn profits. In this report the company which is considered is excellence electronic Ltd (EEL). Whichproduce the house hold appliances and the company is having the 3 factories in London(Bergerand Black., 2011). The have the large manufacturing clients like Canterbury Cookers Ltd andRadios Formidables SA.In this report the profitability and cash flow difference is mention and its affect on thecompany accounts. The concept of working capital has been discuss in the report. The steps ofthe capital budgeting and how it is implement on the particular project is mention in this report. TASK 1 1.1 Difference between profitability and cash flow and its impact on company's accountsCash flow and profits are two different factors of finance they have different impact onthe company accounts. But these two has equal important to run a business. They face theirdifferent issues while growing the company. The difference between cash flow and profits are asfollow.Cash flow cash flow consist the money money which is out flow and in flow into the firm. Cash isprepared to analyse the flow of money inside and outside the organisation. It only involves thetransaction which is done in cash form. No transaction are include which are non cash-able.Cash flow is prepared to meet the daily requirement of the money like paying the money to thesuppliers and receive the money from the customers. There are different scenario in cash flowlike it is not necessary the company earning the high profits has the adequate cash flow. Incontext to the company if the EEL is selling its product to the customers and having the highprofits but the have the long supply chain as the money is receive the customers in longer period1
Business Finance Assignment_4

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