1

ASSIGNMENT FRONT SHEET

Student Name:
Certification: I certify that the whole of this work is the result of my individual effort and that
all quotations from books, periodicals etc. have been acknowledged.
Student Signature: Date:
Student Registration Number:
Student email address :

Programme : Business Undergraduate Year/Level : 4
Academic Year : 2013/14 Semester : 2
Module title : Financial & statistical data Assignment no. : 2
Module code: BUS 409 Word guide: 2,000
Percentage Weighting of this assignment for the module: 50
Issue date : February 2014 Return date : 30
th
April 2014
Lecturer : John Connolly Second marker :

Notes for students :
1. Hard copy of assignment should be stapled in the top left corner and submitted to the School
Office.
2. Electronic copy of assignment should be submitted through the Turnitin software.
3. 10% of marks are awarded for satisfactory use of language and/or good presentation.
4. 5% of marks are awarded for satisfactory referencing and/or presentation of a bibliography where
either is required. Note that all referenced work should be obtained from credible sources.
5. Students should ensure that they comply with Glyndwr Universitys plagiarism policy.
6. Students should make correct use of the Harvard referencing method.

Learning Outcomes Tested in this Assignment :
1. To identify the sources of finance available to various business entities and understand who uses
financial statements and why.
2. To understand the content of basic financial statements and be able to analyse, using various
financial indicators, the performance of a business.


Overall Comment :

Mark (%)


BUSINESS & MANAGEMENT

2

Would students please note that achievement of the learning outcomes for this assessment
is demonstrated against the assessment criteria shown below (which are not necessarily
weighted equally). All marks/grades remain indicative until they have been considered and
confirmed by the Assessment Board

Mark Scheme
Grade
Awarded
Grade
Available
1
Identify sources of finance available to the business entities
(Sole trader, Partnerships, Private Limited Companies, and
Public Limited Companies).
Identification of funding sources (1 mark for each up to maximum
of 8). Additional 2 marks available for brief discussion on
either/or Internal/External sources, Long/Short term, and costs.
10%
2
Explain who uses financial statements, and why they use
them.
Identification of the different user groups (1 mark for each up to a
maximum of 8) and focus on the different reasons these user
groups would use financial statements (1 mark for each up to a
maximum of 8). Marks capped at maximum of 15.
15%
3
Produce an Income Statement and Statement of Financial
Position from a Trial Balance
Income Statement (accept Profit and Loss Account) with correct
titles and headings(2 marks)
Correct format/layout (2 marks)
Correct Gross Profit (2 mark)
Correct Total Expenses (1 mark)
Correct Profit (3 marks)
Statement of Financial Position (accept Balance Sheet) with
correct titles and headings (2 marks)
Correct format/layout (2 marks)
Correct Total Assets (2 marks)
Correct Total Capital and Liabilities (2 marks)
Total Assets equal Total Capital and Liabilities (2 marks)
20%
4
Calculate ratios, and then explain what each ratio means and
give possible reasons for the differences in the results of the
individual ratios over the two years.
Correct calculation of ratios related to Profitability, Liquidity, and
40%
3

Efficiency are made (1 mark for each two year period up to a
maximum of 10)
An explanation of the meaning of each ratio used is given (1
mark for each)
Possible reasons for the changes in the individual ratios over the
two year period are identified (Up to 2 marks for each)
Bonus of 3 marks for available for correct report format (To:,
From:, Date:, Report Title, and introduction).
Marks capped at maximum of 40.
5
Satisfactory use of English, including grammar, spelling,
clarity of presentation.

10%
6 All sources of information are to be referenced satisfactorily 5%

Additional Comments from Second marker or External Examiner (if required) :








LEARNING OUTCOMES
3. Identify the sources of finance available to various business entities and understand who
uses financial statements and why.
4. To understand the content of basic financial statements and be able to analyse the
financial performance of a business using various financial indicators.















4

Scenario

Your organisation, Rapid Hardware Limited, is introducing a graduate intake
programme and financial awareness is going to be part of the induction training. You
have been tasked to provide literature on the sources of finance available to an
organisation.

1. Prepare a report outlining sources of finance available, the advantages and
disadvantages of each of these for businesses.

The work you have produced for the graduate induction programme has been very
well received. It has been identified that graduates also need to know how to
examine the financial health of a business for decision-making purposes.
To accomplish this you should:

2. Explain who uses financial statements, and why they use them.
3. From the Trial Balance provided below, produce an Income Statement, and a
Statement of Financial Position. (The titles of these documents will contain
your family name, and will have been prepared on your birthday in 2013).


Debit Credit

Capital 10,000
Loan 12,000
Sales 52,100
Purchases 36,000
Electricity 2,000
Insurance 1,750
Telephone 1,200
Sundry expenses 1,750
Drawings 9,000
Accountants fees 1,750
Delivery costs 800
Printing machine 3,000
Computer 2,500
Bank balance 12,500
Trade receivables 4,250
Trade payables 2,400
76,500 76,500

Closing inventory as at (Insert date of your birthday 2013) 2,600



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4.Using the example material provided below, calculate ratios to evaluate the
profitability, liquidity and efficiency of this organisation, and then explain what
each ratio means and give possible reasons for the differences in the results
of the individual ratios over the two years.



Rapid Hardware Limited manufactures a range of tools aimed at the DIY market at
its factories in London, Wolverhampton, and Birkenhead. It sells to wholesalers and
directly to the larger DIY chains. You have been able to extract the following
information from the annual reports relating to the companys performance:-

Rapid
Year ended
31.12.2013 31.12.2012
000 000
Turnover (Sales) 26,381 27,850
Cost of sales 20,939 21,383
Gross profit 5,442 6,467
Operating profit/loss 620 -1,455
Expenses 4,822 7,922
Current Assets 11,713 10,933
Inventory 1,216 718
Trade receivables 4,992 4,665
Trade creditors -2,483 -3,057
Current liabilities -13,747 -12,098
Shareholders funds 2,889 3,423
Long term loans 0 1,509

Required

Prepare a report for the Managing Director of Rapid Hardware Limited, Phillip Head,
and the CEO, Allan Keys. Within the body of this report, you should present
calculations of appropriate ratios for each of the years, briefly explain what each ratio
means and, using your calculations, comment on the performance of Rapid
Hardware Limited in 2013 relative to the previous year.

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BA Grading and Marking Criteria

Marking criteria describe the level of understanding and skill demonstration that is expected
from students.

Level 4

Grading & Marking Criteria for BA Programmes
80 + Excellent work of substantial merit which is original in content or approach and
well structured. There is clear evidence of extensive reading and an ability to
organise material effectively.
70 79 Work which is clearly articulated, based on reading, and demonstrates a very
good grasp of the concepts, methodology and content appropriate to the subject
and to the assessed task.
60 69 Work which demonstrates a very good level of understanding of the concepts and
content appropriate to the subject. There is clear evidence of judgement in
selecting and ordering material. The work demonstrates some ability to construct
responses which reveal some originality.
50 59 Work derived from a solid basis of reading and which demonstrates a grasp of
relevant material and key concepts. The performance may be rather routine but
the work will be accurate, clearly written and include some analysis. There will be
no serious omissions or irrelevancies.
40 - 49 Competent and suitably organised work which demonstrates a reasonable level of
understanding with minimal interpretation. It covers the basic subject matter
adequately and is very descriptive. There may be some misunderstanding of key
concepts and limitations in the ability to select relevant material so that the work
may be flawed by some omissions and irrelevancies. There will be some evidence
of reading.
30 - 39 Work lacks evidence of knowledge relevant to the topic and. Some of the work is
irrelevant to the assignment set. Inappropriate choice of references. Invalid
conclusions based on anecdote and generalisation only, or no conclusions at all.
Lacks thought and reference to theory.
0 - 29 Insufficient level of understanding and knowledge base unacceptably weak. No
evidence of structure and poorly presented. Referencing is absent.