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Business Finance Assignment – Excellence Electrics Ltd

Added on -2019-09-20

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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 payments from customers and lined up inventory at the London site of business. EEL should try to recover the dues and stop adding inventory at London site, as there is not work going in there, and consume the inventory there by using it or selling it. This report details the steps of capital 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 is considered for selecting or rejecting a project.2
Business Finance – Excellence Electrics LtdTable of contentsIntroduction Findings 1.1Profitability, cash flow, need for working capital and how working capital can be managed 1.2Capital budgeting stages, Application and analysisConclusion 2.1 Difference between profit and cash, working capital application, and how it can be improved2.2Conclusion of Capital budgeting steps and which method gives the best answerRecommendationReferences IntroductionThis 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 impact 3
Business Finance – Excellence Electrics Ltdof working capital on the company and how it is used in the company and how it can be improved or financed so that it can be used effectively as per the needs of EEL. It also considers which method of capital budgeting is useful in selecting a project, and what are the steps for capital budgeting appraisal.Findings1.1 Profitability, cash flow, need for working capital and how working capital can be managed.a.Three factories are operated by EEL and generating turnover of £35 million.4

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