This accounting and finance assignment delves into several key areas of financial analysis. Section A focuses on ratio analysis, calculating and interpreting various ratios like gross profit margin, operating profit margin, current ratio, quick ratio, inventory turnover, and others for Murty plc to assess its financial performance in 2020 and 2021. The analysis includes a discussion of the company's liquidity, efficiency, and profitability, along with an assessment of its performance from an investor's perspective and limitations of ratio analysis, followed by definitions of the historic cost concept, accrual concept, and monetary measurement concept. Section B explores capital budgeting, comparing two projects, Moltavia and Zenburg, using the payback period and net present value (NPV) methods to determine the more favorable investment. It includes the calculation of payback periods and NPVs for both projects. The assignment also considers other factors relevant to investment decisions and provides an overview of the payback period's advantages and disadvantages. Finally, the assignment concludes with a cash budget for Vivaldi Ltd, projecting cash inflows and outflows for June, July, and August, and suggesting strategies to manage cash shortfalls.
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