Financial Management: Assessment of Financial Data and Investment Proposals

DistanceLearningCollege and Training – Submission Sheet
NAME STUDENT NO. If known
DATE
INSTITUTE
COURSE
UNIT TITLE
TOPIC
TASK REF
THE TASK
FINANCIAL MANAGEMENT

DistanceLearningCollege and Training – Submission Sheet
TABLE OF CONTENTS
Introduction................................................................................................................. 6
Task 1:........................................................................................................................ 6
A.C. 1.1 - Determine how to obtain financial data and assess its validity................6
A.C. 1.4 - Review and question financial data.........................................................7
Task 2......................................................................................................................... 8
A.C. 1.2 - Apply different types of analytical tools and techniques to a range of
financial documents, formulating conclusions about performance levels and needs
of stakeholders.........................................................................................................8
A.C. 1.3 - Conduct comparative analysis of financial data.....................................10
Task 3:...................................................................................................................... 12
A.C. 2.1 - Identify how a budget can be produced taking into account financial
constraints and achievement of targets, legal requirements and accounting
conventions............................................................................................................12
Task 4:...................................................................................................................... 15
A.C. 2.2 - Analyse the budget outcomes against organisational objectives
identifying alternatives........................................................................................... 15
Task 5:...................................................................................................................... 16
A.C. 3.1 - Identify criteria by which proposals are judged......................................16
A.C. 3.2 - Analyzing the viability of the proposal for expenditure...........................17
A.C. 3.3 - Identify the strengths and weaknesses and give feedback on the
financial proposal...................................................................................................18
A.C. 3.4 - Evaluate the impact of the proposal on the strategic objectives of the
organisation........................................................................................................... 19
Conclusion and Recommendations...........................................................................19

DistanceLearningCollege and Training – Submission Sheet
References................................................................................................................21
List of Tables
Table 1: Calculation of Ratios of Crawford Healthcare...............................................5

DistanceLearningCollege and Training – Submission Sheet
List of Figures
Figure 1 : Approaches of Budgeting............................................................................8

DistanceLearningCollege and Training – Submission Sheet
Introduction
Accurate information has a significant role in the decision-making process as an
organization can make a sound decision only in case accurate information is
supplied to the correct people at the right time in a comprehensibleformat.As per the
assertions of Mimura, et al. (2015), external as well as internal information is
considered by an investor to make a decision relating to investment or to assess the
efficiency of an organization. Present report emphasis on assessment of the external
as well as internal sources from which appropriate financial data can be attained.
Further assessment of the various ratios of Crawford Healthcare has been done in
order to evaluate its financial performance. Discussion relating to methods of
evaluating investment proposals will also be provided in order to ascertain the best
method for the company.
A.C. 1.1 Source of financial data that is HM revenue and customs.
A.C.1.4 include a profit and loss account or other financial data within your
organization (no names need to be disclosed), then as per the Task examine this
data (maybe comparing 2 or 3 previous years) and identify areas that you consider
deserve further investigation/analysis explaining how and why you consider this to
be necessary. Is it profitable?
You then need to refer to the task again and describe the types of data on other
organisations that you may require from time to time, such as competitors, suppliers
(to ensure they are financially sound in order to provide a constant supply chain).
You then need to go on to explain briefly how you would test the validity of the data.
A.C. 1.2 you need to apply these to the financial data provided in AC1.4. Giving
actual calculations of the ratios.
A.C.1.3 calculate the ratios for previous year’s data and referring to the task
compare them to the current year, drawing your own conclusions on your findings,
identifying strengths and weaknesses and making recommendations of ways in
which any shortcomings could be addressed.

DistanceLearningCollege and Training – Submission Sheet
Task 1:
A.C. 1.1 - Determine how to obtain financial data and assess its validity
Types of data required
Internal Sources
DefensiveData: The specified relates to activities which assure compliance with
regulations. It comprises the integrity of the financial report and governing data. The
same is presented in financial reports.The yearly report is considered extremely
significant in comparison to several companies issue to their shareholders. The
reason behind the same is that the annual report provides shareholders with a
holistic view related to the organisation’s performance and reputation during the
preceding financial year (Laudon and Laudon, 2016). Apart from this, there are other
sources from which information can be assured that it is valid and they are an interim
financial statement, prospectus of the securities, internal account reports, annual
statement and financial reports. Furthermore, as per the study of Petty, et al. (2015),
the financial report comprises financial reports and other pertinent financial
information, whether or not it is in fiscal terms.
Offensive Data: Offensive activities relates to other business functions such as sales
and marketing, legal compliance, IT concern, supply management etc. It also
comprises information relating to competitiveness in the industry in order to assess
the existing trend. Moreover, data relating to suppliers of the product is also required
for assessing the effectiveness of the supply chain (West and Bogers, 2014). In
order to assure the validity of data the source from which information relating to
above-specified variant is assessed that whether the same can be trusted or not.
External Sources:
Revenue and Custom department are believed to be appropriate external resources
as the information provided by them is valid. Thus, decision taken on the basis of
same is appropriate. They are a helpful source of financial information. However,
share prices are affected by other factors; theyreplicate not only information on the
market’s evaluation of the growth and investment risk connected to future dividends,