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Managing Financial Resources & Decisions - Report Sample

   

Added on  2020-01-07

20 Pages5549 Words157 Views
Managing FinancialResources and Decisions

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................4TASK 1............................................................................................................................................41.1 Identifying sources of finance available to incorporated and unincorporated businesses.....41.2 Assessing the implication for using internal and external sources of finance.......................51.3 Evaluating the most appropriate source of finance for Clariton Antique Ltd........................6TASK 2............................................................................................................................................62.1 Analyzing the cost of two sources of finance........................................................................62.2 Importance of financial planning ..........................................................................................72.3 Information needs to make decision on financing the takeovers...........................................82.4 Impact of financial statement in case of selection of finance broker and Venture capitalist.8TASK 3............................................................................................................................................93.1 Preparing and analyzing the cash budget for Clariton Antique Ltd.......................................93.2 Calculating the unit cost for making pricing decisions........................................................103.3 Assessing the viability of project using investment appraisal techniques...........................11TASK 4..........................................................................................................................................134.1 Discussing the key components of financial statements......................................................134.2 Comparing the format of financial statement of Clariton Antique Ltd and partnershipbusiness......................................................................................................................................154.3 Interpreting the recent financial statements of Clariton Antique Ltd..................................16CONCLUSION..............................................................................................................................18REFERENCES..............................................................................................................................19

Index of TablesTable 1: Cash budget.......................................................................................................................9Table 2: Working note.....................................................................................................................9Table 3: Costing.............................................................................................................................10Table 4: Payback period.................................................................................................................11Table 5: Accounting rate of return.................................................................................................12Table 6: Net present value.............................................................................................................12Table 7: Ratios...............................................................................................................................16

INTRODUCTIONFinancial resources are the most important aspect which assists corporation to integrateall business activities in the direction of growth and success. The effective management offinancial resources is done with help of application of different technologies such as budget,investment appraisal and ratio analysis. This ensures better management of all financialresources by considering cost and profitability generated by each. Present report is based onClariton Antique Ltd; operating with 2 branches in London and dealing with antique items.Currently, business is looking forward to acquire a building in Birmingham to open anothermarket. However, it requires to raise £0.5 million for working on its plan which assistscorporation to access cost effective source of finance and determine success of the business inthe marketplace (Clariton Antiques Ltd, 2016). Furthermore, different sources of financeavailable for business are explained and analyzed. Similarly, cash budget has been prepared inorder to assess the variation between actual and expected results. Apart from this, impact offinance has been explained on financial statement which affect its overall performance to a greatextent. In addition to this, ratio analysis has been done to analyze the performance of business.TASK 11.1 Identifying sources of finance available to incorporated and unincorporated businessesThe sources of finance are referred by business in accordance with specific requirement.However, it can be different for incorporated and unincorporated business.Sources for incorporated businessThe businesses which are incorporated are generally considered as the public limitedwhich has right to issue the equity share and raise their finance. It enables management to accesscost effective source and accomplish the selected sources. Similarly, leasing companies, banksand financial institutions are also the effective sources of finance for corporation like ClaritonAntique Ltd which aids to operate the business in the marketplace with increased rate of return asfinance can be acquired at any particular time (Archibald and Archibald, 2016). However, itdepends on the requirement of business and accordingly sources of finance are acquired.Sources of unincorporated business

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