Assignment Financial Management

©Al Tareeqah Management
Studies - 2020
1
FINANCIAL MANAGEMENT
SBS MBA / MSc
Assignment – Qatar 2020
STUDENT ID
UNIT TITLE / CODE: ___________________________________________________
NAME (in Full): ___________________________________________________
GENERAL INSTRUCTIONS
● All assignments are to be submitted 13th February 2020 on to [e-mail]
and cc to [e-mail].
● If assignment is not submitted on date, will follow with penalty of 10% deduction of marks
for every day.
● Similarity between students work is strictly not accepted, any student found with similar work
will be graded Zero and fail for the course. However, Plagiarism is an academic offence and
will not be tolerated under SBS
● Assignment once submitted to exam board is final for marking.
● Total mark will be converted to 90 & class participation of 10 marks.
Total 100 marks
GUIDELINES FOR ASSIGNMENT
1. If assignment is Question & Answer based then.
 Introduction is needed for each question.
 Question has to be answered based on the mark allotted for each question with references
if any idea or information is taken from other source.
2. If assignment is case based then,
 Executive summary
 Table of content
 Body of assignment (questions related to case need to be answered)
 Conclusion / Recommendation if any
 References (in-text + citation) to be used.
Total Marks / 90

©Al Tareeqah Management
Studies - 2020
2
PLAGIARISM
Plagiarism is a form of cheating, by representing someone else's work as your own or using
someone else's work (another student or author) without acknowledging it with a reference. This
is a serious breach of the Academic Regulations and will be dealt with accordingly. Students
found to have plagiarised can be excluded from the program.
Plagiarism occurs whenever you do any of the following things without acknowledging the
original source:
 Copy information from any source (including the study guide, books, newspapers, the internet)
 Use another person's concepts or ideas
 Summarise or paraphrase another person's work.
How do I avoid plagiarism?
To ensure you are not plagiarising, you must acknowledge with a reference whenever you:
 use another person's ideas, opinions or theory
 include any statistics, graphs or images that have been compiled or created by another person or
organization
 Paraphrase another's written or spoken word.
What are the penalties?
The penalties for plagiarism are:
 Deduction of marks,
 A mark of zero for the assignment or the unit, or
 Exclusion from the program.
Plagiarism is dealt with on a case-by-case basis and the penalties will reflect the seriousness of
the breach.
Please note: claiming that you were not aware of need to reference is no excuse.

©Al Tareeqah Management
Studies - 2020
3
Answer the below questions. Each question carries equal marks.
Q1. i) Explain the importance of analysing Financial Statements through Ratios.
ii) Albert Ltd sells goods on cash as well as credit. The following particulars are
extracted from their books of account.
Total Gross sales $100,000
Cash sales (included in above) $ 20,000
Sales returns $ 7,000
Accounts Receivable $ 11,000
Accounts Payable $ 10,000
Calculate : Accounts Receivable Turnover and Average Collection period ratios.
Answer to Question 1:
Part i:
The importance of analysis of the statement of financial through ratio analysis are the
following points highlighted below,
 It helps in analysing the profitability of the firms and to analyse the profitability cycle of the
company.
 It helps in comparing comparable firms.
 It provides an insight of the risk which is faced by the business and to highlight the changes
of liquidity of the company.
Part ii:
The accounts receivable turnover ratio is 6.636 times, while the average collection
period is 55 days.
Figure 1: Accounts Receivable Turnover and Collection Period
Source: By the Author