Business Finance Assignment – Excellence Electrics Ltd

Added on - 20 Sep 2019

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Business Finance – Excellence Electrics LtdBusiness FinanceExcellence Electrics Ltd (“EEL”)1
Business Finance – Excellence Electrics LtdExecutive SummaryEEL is not having enough cash and there is a big difference between cash and profit because oflate paymentsfrom customers and lined up inventory at the London site of business. EEL shouldtry to recover the dues and stop adding inventory at London site, as there is not work going inthere, and consume the inventory there by using it or selling it.This report details the steps ofcapital budgeting process and why it is important to keep formal documentation of it. It states thedifferent methods of capital budgeting and why the chosen method Net Present value isconsidered for selecting orrejecting aproject.2
Business Finance – Excellence Electrics LtdTable of contentsIntroductionFindings1.1Profitability, cash flow, need for working capital and how working capital can bemanaged1.2Capital budgeting stages, Application and analysisConclusion2.1 Difference between profit and cash, working capital application, and how it can beimproved2.2Conclusion of Capital budgeting steps and which method gives the best answerRecommendationReferencesIntroductionThis report is prepared to provide the information about the difference between the cash flow andthe profitability of EEL and how these are shown in the company’s accounts. It also puts impact3
Business Finance – Excellence Electrics Ltdof working capital on the company and how it is used in the company and how it can beimproved or financed so that it can be used effectively as per the needs of EEL. It also considerswhich method of capital budgeting is useful in selecting a project, and what are the steps forcapital budgeting appraisal.Findings1.1 Profitability, cash flow, need for working capital and how working capital can bemanaged.a.Three factories are operated by EEL and generating turnover of £35 million.4
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