Financial Decision Making

Financial Decision Making

INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
Evaluation of the role of accounting and finance:...................................................................................3
TASK 2..........................................................................................................................................................6
Calculation of the ratios to analyse company performance:...................................................................6
Interpretation and analysis of financial ratios:........................................................................................7
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Financial decision-making requires a structured and coordinated series of activities
associated with selecting the most suitable and effective option among various option fiscal-
related actions. Its basic aim or slogan is to carry in and select new or creative measures to
achieve enterprise aim, vision and purpose (Ball, 2013). Report offers descriptions of different
components such as terminology, financial statements framework and usage of management
accounting techniques in the sense of Camden Limited in preparation, monitoring and choice-
making. It is the largest producer and fabricator of uPVC windows and doors in the UK. Report
also contains workings of ratios along with relevance to different users and duty of accounting
and finance in business entity regarding decision-making and reporting in context of ALPHA
Limited, UK's manufacturing company.
TASK 1
Evaluation of the role of accounting and finance:
Overview of company:
In the UK, Camden Limited is the most renowned manufacturer and distributor of uPVC
doorway, ventilation and access. Business provides personalized windshield and door layouts as
per client preference. Company has its headquarters in Antrim, Northern Ireland and via it runs
its industry throughout the UK. The company is famed for its uncompanionable layout and
windows selection, exterior gates. Because of its approx. 36 years of professional experience and
outstanding quality of the product in manufacturing, it has achieved this status. It designs and
provides long-lasting products which comply with safety standards. Company eventually enabled
financing for the replacement of uPVC items and provides conservation of their old goods.
Structure of and terms used within the financial statements:
Financial statements combines Income statements or Profit or loss account, balance sheet
or statement of financial standing and vary from fairness or shareholder's finance, cash flow
invoice etc.. Framework of balance sheet incorporates proprietor equity, obligations and each
resource. Balances displayed in balance sheet are significance of obligations and resources
according to fix date. Shareholder's finance or proprietor equity includes funds, reservations and
present year benefit. Liabilities are farther broken up into current liabilities and noncurrent

obligations. Structure of income announcements contains web turnover, cost of goods sold,
revenues, indirect and direct expenses and earnings. In trading accounts section gross profit
calculation has been displayed. Gross profit is calculated by correcting opening and final
inventory, and deducting direct expenses in overall number of earnings. Whereas in net benefit
part all of in direct incomes and expenses are displayed. Net profit is calculated by deducting all
in direct expenses from direct incomes. In direct expenditure and income would be such profit
and expenditure that aren't directly associated with core business tasks of business actions.
Role of Management accounting techniques:
Management accounting comprises most precious purposes that eases direction by
producing advice or aggregations to managing employees/officials in commerce venture
assisting them into accepting judgments and conclusions (Bryer, 2013). All of process and also
stressed actions of direction bookkeeping concentrates towards usage of specific pertinent tools
and methods this to create smoothness in procedure for commanding, decision making and
preparation. Here major goal of business leaders is to give efficacy and create vital progress in
business vital methods. In huge businesses such as Camden LTD Applicants or managerial
personnel utilizing different methods to achieve desirable efficiencies company's surgeries and
practices. Additionally, it helps out with systematic allocation and mission of fiscal and financial
tools to grow and attain liability. Methods are embraced by businesses put policies and guidance
to get conducing management and trade methods. Financial preparation, cash flow statements,
investigation of financial statements, and finance flow announcements etc. many widely
accepted management bookkeeping methods. There multipurpose methods that is essential for
overall development of and also to give efficiency in internal and external procedures. Following
is a debate on Several Methods direction employs beneath control bookkeeping:
Financial Planning: It only implies to pair of special activities and purposes which can
be ran by businesses to job findings, quote capitals and asses the dependence on funding demand
whilst considering competitive things. It is helpful to produce financial polices and tips regarding
job, investment and application and direction of how level of capital accumulated through
various sources in just a company thing. Managers in Camden Limited managers additionally
having financial preparation to come up with systems which warn regarding degree and
adequateness of short and long-term funds or capital to carry quick investment decisions. On the