logo

Management of Financial Resources - Report

   

Added on  2020-01-15

14 Pages3921 Words178 Views
MFRD1
Management of Financial Resources - Report_1
TABLE OF CONTENTSIntroduction .....................................................................................................................................3TASK 1............................................................................................................................................41.1 Sources of finance available to business................................................................................41.2 Assessing the implication of different sources......................................................................41.3 Evaluating appropriate sources of finance for business.........................................................52.1 Analysis of costs of different sources of finance...................................................................52.2 Importance of financial planning ..........................................................................................62.3 Information required to make effective decisions ................................................................62.4 Influence of different sources of finance on financial statements ........................................7TASK 2............................................................................................................................................73.1 Analysis of budget and making appropriate decisions..........................................................73.2 Calculation of unit costs and making pricing decisions........................................................83.3 Assessing viability of project using investment appraisal technique....................................9Task 3.............................................................................................................................................114.1 Main financial statements ...................................................................................................114.2 Comparing formats of financial statements for different types of business........................114.3 Interpreting financial statements using appropriate ratios...................................................12Conclusion ....................................................................................................................................13References......................................................................................................................................142
Management of Financial Resources - Report_2
3
Management of Financial Resources - Report_3
INTRODUCTION In the present scenario, management of financial resources has become very importantfor the growth and success of a business enterprise. Further, it can be stated that effectivemanagement of resources helps companies to achieve their objectives and aim in the bestpossible manner (Broadbent and Cullen, 2012). Along with this, inappropriate management offinance can results in lowering down overall performance as well as sales of a businessorganization. The present study is based on WM Morrison which in one of the largest chain ofsupermarkets in UK. This report explains different source of finance available to business alongwith their implications. On the other side of this, the report also highlights the important offinancial planing. TASK 11.1 Sources of finance available to businessIt can be stated that at the time of carrying out its operations, there are different sourcesof finance available (Managing Financial Resources and Decisions, 2013). It is required tobusiness such as WM Morrison to evaluate each and every source before selecting them.Different sources are mentioned below as: Retained earnings- It is one of the most effective internal source of finance which cansupport the organization in satisfying its financial needs. The brand can use funds whichhas been retained by it from its net income (Siano, Kitchen and Giovanna Confetto,2010). Sale of old assets- In order to raise funds from internal sources, WM Morrison can alsosale some of its old assets which are no longer used. It is another effective internalsources of finance,Issuing shares- WM Morrison can also us external sources such as issue of share in orderto meet its financial needs (Morrisons, 2016). The organization can raise required fundsby issuing its shares in public. Loan from bank- It is one of the most common external sources of finance which is usedby businesses. WM Morrison can take different short, medium and long terms loan for4
Management of Financial Resources - Report_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Managing Financial Resources and Decisions - Clariton Antique Ltd Assignment
|19
|5460
|148

Managing Financial Resources - Sainsbury Assignment
|15
|4215
|23

Implications of Different Source of Financing MFRD
|16
|4387
|174

Assignment : Managing Financial Resources & Decisions
|19
|6279
|180

Managing Financial Resources and Decisions
|16
|3938
|226

Managing Financial Resource Decisions
|18
|4200
|127