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Report On Managing Financial Resources Of Clariton Antique Ltd

   

Added on  2020-02-12

18 Pages4559 Words80 Views
MANAGING FINANCIALS

Table of ContentsINTRODUCTION...........................................................................................................................4TASK 1............................................................................................................................................41.1Identification of source of finance..........................................................................................41.2Implication of source of funds................................................................................................51.3Most appropriate source of finance for the firm.....................................................................5TASK 2............................................................................................................................................62.1Analyse the cost of various source of funds...........................................................................62.2Importance of financial planning............................................................................................72.3 Information needs of internal and external decision makers.................................................72.4 Impact of finance on financial statements.............................................................................8TASK 3............................................................................................................................................83.1 Cash budget and its analysis..................................................................................................83.2 Unit costs and price decisions..............................................................................................103.3 Investment appraisal techniques..........................................................................................10TASK 4..........................................................................................................................................124.1 Major financial statements for the business.........................................................................124.2 Differences between formats of various types of businesses..............................................124.3 Interpreting results of business performance.......................................................................13CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16

INTRODUCTIONIn every business organisation, finance is very important aspect in order to survivebusiness activities and function. In the absence of finance, corporation cannot survive itsoperation in an effective manner. In order to gain desired success and make business effectiveand smooth, management requires to proper balance of the finance and allocate it in an effectiveways. Ineffective management of funds can lead to liquidity shortage. The following projectreport is based on the managing financial resources and to know more about this a scenario ofClariton Antique Ltd. This report explained that various financial statements and ratio analysis inthe context of cited venture. In addition to this various kinds of stakeholder which can affect thebusiness organisation and its financial function has also addressed in this report. At the end ofthe report,. Ratio analysis is done and project evaluation method has been applied to select themost viable project for the organisation.TASK 11.1Identification of source of financea)Unincorporated business- This type of business are the partnership and sole-trader theyfinance business by use of various sources are describe below-Working capital- The firm finance its business to run its day-to-day operations effectivelyby management of receivable, payable and stock levels (Pfohl,Köhler and Thomas, 2010). It helpthem to build a brand image, easy availability of material and also manage the solvency etc.Retained earning- The Retained profit is used by various organisation to expand thebusiness. This profit is remains after distribution of profit to the shareholders and reinvesting inthe firm.b)Incorporated business- The Clariton Antiques limited use various source to funds its businesssmoothly which are as follows-Bank loan- The cited organisation take short-term as well as long term long from thebanking institution. They have to charge some instalment payments in equally for some maturityperiod.Venture capital- They take equity capital to start their business and also develop high-technology (Healy and Palepu,2012). The capitalist firm accept the business proposal afteranalyse the firm background, financial performance to meet the current obligations.

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