RECENT ASSIGNMENT

NEW ZEALAND DIPLOMA IN BUSINESS LEADERSHIP AND MANAGEMENT LEVEL 6
603 (v6)
FINANCE FOR MANAGERS (LEVEL 6, 20 CREDITS)
INDIVIDUAL ASSIGNMENT 1 – RESEARCH BASED CASE STUDY/BUSINESS REPORT & PRESENTATION TO
SENIOR MANAGEMENT (7 CREDITS)
DUE DATE: 01 FEBRUARY 2019
Assessment Overview
This is the first of two assessments for this course. This assessment is made up of two parts; a research-based case study analysis and a presentation. You are required to undertake research to analyse and discuss the function of financial management to achieve the strategic objectives of an organisation. Upon completion of the research, you are required to apply your findings to a given organisational case to resolve complex financial situations and challenges included in the case.
You are required to submit your assignment as a business report and an oral presentation suitable for the purpose of communicating key recommendations to the senior management of the company.
Assessment Table
Assessment Activity Weighting Learning
Outcomes Assessment
Grading
Scheme Completion
Requirements
1. Research based Case Study Analysis &
Presentation 35% 1,2 Competency-Based A/NA
2. Case Study Based Analysis 65% 3,4,5,6 Competency-Based A/NA
Conditions of Assessment
1. You are required to present your work in a word-processed format using headings, page and section numbering as appropriate. Where necessary, use indentations, figures and tables, appendices.
2. Word count: 4000 words (+/- 10 %) - as a guide
3. Use Arial or Times New Roman with a font size of 12, and line spacing of 1.5
4. Students must submit their reports via Turnitin for scanning of plagiarism which must be less than- equals 10%.
Refer to Policy 7.7. Clause (I) for uploading of assessments to Turnitin.
5. Please submit a soft copy to http://abacusconnect.co.nz/ by the due date.
OR
Alternative arrangements may be made for presenting and submitting your work with help of the course instructor/tutor. For students with special needs, please discuss these with your immediate teacher/Programme Coordinator so that measures can be taken to implement your requirements for your studies.
6. This assessment will need to be completed on or before 01 February 2019
7. You are required to present your work in a word-processed format using headings and section numbering as appropriate. Where necessary, use indentations, figures and tables, appendices.
8. Use Arial or Times New Roman with a font size of 12, and line spacing of 1.5
9. Please submit a soft copy to http://abacusconnect.co.nz/ by the due date. Alternative arrangements may be made for presenting and submitting your work with help of the Teacher - (Refer to QMS Policy 7.7 (Clause (l) for uploading of assessments to Turnitin).
10. All parts of your submitted assessment must be completely your own work and references must be cited and referenced appropriately using APA 6th Edition referencing. It is recommended that you use EBSCO and cite from peer reviewed journals and articles.
11.
This assessment will need to be completed by: 01 February 2019.
Pass Criteria
This is a competency-based assessment (A/NA). This means that all parts of the assessment must meet the required standard in order for you to be awarded the grade of ‘Achieved’.
Late Submission /Reassessment /Extensions
a. Students are given the opportunity to be reassessed up to two (2) times and at the convenience of the academic staff for all types of assessments. In most circumstances, reassessments shall usually consist of learners producing further evidence required to achieve competency in a given task.
b. Students shall achieve competency in at least 50% of the set assessment tasks to be eligible for a reassessment (resubmission).
c. If students’ fail two (2) attempts and have not achieved 50% of assessment tasks in the 2nd attempt, he/she must complete the course again and pay the re-enrolment course fee i.e. $50 per credit.
d. Timeframe for resubmissions: Within 1 week of submission date + 1 week for marking (minimum).
e. There shall be no opportunity for 3rd/4th attempts. If a teacher decides that specific circumstances require a 3rd attempt – this must be discussed and approved by the Director Teaching and Learning.
f. Late submissions will not be accepted for marking, unless the teacher has granted this in writing to the student(s).
g. If there are extenuating circumstances that prevent a student submitting by the submission date, he/she must discuss this with the Programme Leader / Course Coordinator, so that a resolution can be confirmed.
Learning Outcomes
At the successful completion of this course, learners will be able to:
LO1
Discuss and apply the principles and practices of financial analysis for the strategic

management of an organisation.
LO2 Research and communicate financial analysis and make recommendations for various
business situations to internal and external stakeholders for the efficient and effective
performance of the organisation
LO3 Analyse organisational requirements and prepare financial forecasts and budgets for planning and control within an organisation.
LO4 Apply cost accounting technique and method for the effective and efficient performance of an organisation.
LO5 Interpret financial reports to evaluate organisational performance and decision-making for the efficient and effective performance of an organisation.
LO6 Interpret and present financial data according to the legal and professional financial reporting and tax requirements in New Zealand
Note: Learning Outcomes 3, 4, 5 and 6 will be assessed in Assessment 2.
Abacus Institute of Studies
603 Assessment 1 (v6)
1
Instructions
This assessment requires you to demonstrate your ability to undertake research to analyse and discuss the function of financial management to achieve the strategic objectives of an organisation and to apply findings to a given organizational case to resolve complex financial situations and challenges included in the case.
To do this you will need to:
1. Research and reflect on principles and practice of financial management for the strategic management of an organisation.
2. Read through the case study on Folkstone Limited and consider how your research on financial management could be applied to the main requirement of the assessment, i.e. to assess the feasibility of raising a bank loan or other source of finance. To do this you will need to research, interpret and analyse the performance of the Folkstone Limited its efficient and effective performance.
You are employed as an accountant at Folkstone Limited and are required to use the information gathered in steps 1 and 2 to write and submit a formal business report and deliver an oral presentation for the purpose of communicating key recommendations to the senior management of the company. The requirements for the formal business report and presentation are as follows:
Report Structure
The report should be 1.5 line spaced, contain a table of contents and sections as required. The structure should be as follows:
i. Cover page
ii. Executive Summary (500 words maximum)
iii. Table of Contents
iv. Introduction (300 words maximum)
v. Financial Analysis (i.e. Questions 1 – 3)
vi. Conclusion (300 words minimum)
vii. Recommendations
viii. References
ix. Appendices
Note:
Your report must meet the standards of a business document suitable for presenting to senior management. i.e. use of appropriate formatting, has been spell checked, uses an appropriate standard of business English, inclusion of a table of contents and headers and footers (as appropriate) and suitable use of information which should be referenced using the current APA format.
Presentation
As an accountant at Folkstone, you are required to present your financial analysis to the senior management of Folkstone to assess the feasibility of raising a bank loan or any other source of finance and make recommendations for improvements accordingly.
Your presentation must meet the following criteria:
• It should communicate the major findings of the financial analysis briefly and present recommendations to senior management for the efficient and effective performance of the organisation in a given scenario.
• Be of a high standard in all ten assessment criteria (See Appendix 1), i.e.
o Introduction o Visuals o Content o Non-verbal communication o Voice – tone – pace – volume o Clarity of speech o Eye contact o Audience engagement o Questions o Structure
• The presentation should be 10 - 15minutes in length.
Note:
• As the assessor is looking for presentations that meets the expectations of business professionals (i.e. senior management), you should dress smartly, use your words carefully, be punctual and use information in recommending and supporting a solution whether the business should source a bank loan or source or forms of finance.
• Your presentation will be video recorded for quality assurance purposes.
FORMAL BUSINESS REPORT
You are required to write a Case Study Analysis in nine sections:
REQUIRED – ANSWER ALL QUESTIONS:
Cover page
Include relevant information including Audience, Author, Title, Date
Executive Summary
Write an executive summary (maximum 500 words) which clearly and accurately reflects the overall scope of the report together with the major findings as drawn from the analysis and the recommendations made.
Table of Contents
You are required to include an accurate table of contents. It is recommended that you use the automatic table of contents function to complete this.
Introduction
Write a brief introduction (300 words maximum) which provides a brief introduction of the organisation’s nature and background including:
• terms of reference,
• relevant background information
• financial procedures used in the report.
(LO1, LO2)
Financial Analysis
You are required to provide a financial analysis of the case study information which applies your research of the principles and practices of financial management for the strategic management of the organisation.
Your financial analysis must address all of the following:
1. Discuss at least 3 principles and practices of financial analysis.
(LO1)
2. Discuss the importance of financial analysis for at least 3 users for the strategic management of the organisation.
(LO1)
3. By interpreting the information from the Income Statement and Balance Sheet above, apply the principles and practices of financial analysis to provide a detailed analysis of profitability, short- and long-term solvency, efficiency and market value ratios (at least 2 ratios for each) and make detailed recommendations for senior management and various other stakeholders for both the year ended June 30, 2017 and the year ended June 30, 2018. Your analysis must include a discussion of:
§ A definition and explanation of each ratio
§ A comparison between the 2017 and 2018 financial years
(favourable or unfavourable)
§ A comparison with latest available industry benchmarks
§ Reasons for the changes from 2017 to 2018
§ Impact on stakeholders
§ Recommendations for improvement
§ Any other relevant information
Note: The table on the next page details some of the industry benchmarks for your comparison. However, you will need to research the latest available industry benchmarks from the IRD & Statistics New Zealand websites to complete the table and apply them to your financial analysis above.
(LO1, LO2)
Indicator Industry Benchmark
Profitability Gross profit margin % ?
Net operating profit Margin % ?
Return on assets % ?
Return on Equity % ?
Short term Solvency Current ratio x:y ?
Quick ratio x:y ?
Long term Solvency Debt to Assets (%) ?
Debt to Equity ratio x:y 0.5:1
Interest cover (times) 4
Efficiency Stock turnover (times) ?
AR turnover (times) 15
Market Value Earnings Per Share $1
Dividends Per Share 0.3 OR 30 cents
4. Discuss the limitations (At least 2 for each) related to process (general) and results (specific) of financial analysis performed above in requirement 2.
(LO1)
Conclusions
You are required to reflect on your financial analysis and draw conclusions (minimum 300 words) from each ratio calculated.
(LO2)
Recommendations:
In the light of your financial analysis and conclusions make recommendations for improvements for Folkstone Limited for 2017 & 2018. These must include but are not limited to the feasibility of raising a bank loan or other finance.
(LO2)

Appendix 1
FOLKESTONE LIMITED
Folkestone Ltd. (henceforth Folkestone) is a New Zealand company which produces and sells a variety of products, including bikes. Their top product is the new Bison electricassist pedal bike, which they are very excited about. It is a fast-growing company in terms of sales and in assets and is looking to continue this growth.
Folkestone is going to be listed on the NXT (a division of the NZX) and must comply with all NZ IFRS and NZ tax regulations for reporting purposes. Financial statements and financial information are all presented on a GST exclusive basis.
The senior management of Folkstone are planning to buy another plant at the end of 2019 to sustain the growth. The current land and building of the company are already mortgaged at a 10% annual interest rate. Issued Shares, Net profits and dividends information for 2017 and 2018 is as follows:
As at 30
June Number of shares Dividends ($) Profit available for ordinary
shareholders ($)
2017 1,000,000 20,000 (paid) (440,000)
2018 1,000,000 80,000
(proposed) 828,000
As an accountant at Folkstone, you are required to prepare a formal business report which presents a detailed financial analysis to the senior management of Folkstone to assess the feasibility of raising the bank loan or any other source of finance and make recommendations for improvements accordingly. The report may also be used by other internal and external stakeholders of the company.
Folkstone Ltd Income Statement
Year Ended 30 June 2017 Year Ended 30 June 2018
Actual ($) Actual ($)
Sales 24,000,000 27,000,000
Cost of goods sold
Gross profit
11,000,000 12,000,000
13,000,000 15,000,000
Operating costs
Salaries
3,800,000
4,000,000
Rent and rates 2,000,000 2,500,000
Heating and lighting 2,300,000 2,600,000
Office consumables 1,200,000 1,300,000
Vehicle running expenses 700,000 750,000
Depreciation of plant machinery and building 40,000 50,000
Repairs and maintenance
Total operating expenses
Operating Profit / Loss (-) 1,600,000 1,650,000
11,640,000 12,850,000
1,360,000 2,150,000
Folkstone Ltd.
Balance sheet
As at June 30, 2018
2017 2018
$ $
Equity 25,370,000 25,620,000
represented by Current Assets
Bank
7,000,000 5,000,000
short term investments 5,000,000 2,000,000
Prepaid expenses 50,000 70,000
Inventory 8,000,000 10,000,000
Account Receivable Total Current Assets 1,000,000 2,000,000
21,050,000 19,070,000
Non-current Assets
Plant & Machinery (NBV)
8,000,000 7,200,000
Land & Building (NBV)
Total Non-current Assets
14,000,000 12,600,000
22,000,000
19,800,000
Total Assets
Current Liabilities
Accounts payable 43,050,000 38,870,000
900,000 1,500,000
Other liabilities 100,000 150,000
Accrued expenses 80,000 100,000
Interest payable 1,000,000 800,000
Taxes payable
Total Current Liabilities 600,000 700,000
2,680,000 3,250,000
Non-current Liabilities
Mortgage
Total Non-current Liabilities
Total Liabilities
Net Assets
15,000,000 10,000,000
15,000,000 10,000,000
17,680,000 13,250,000
25,370,000 25,620,000
Appendix 1: MARKING TEMPLATE FOR Individual - Group Presentations
Student name: ID;
Teacher name:
Date:
NB: Must Pass all competency components = Achieved grade.
Criteria Description Fail Fail Pass Pass Pass COMMENTS
1. Introduction How well did speaker capture audience attention, state clear purpose and objectives? Speaker did not have a
clear introduction to the topic being presented? Speaker covered introduction quickly capturing audience, but not purpose or objective Speaker
captured audience and gave purpose Speaker
captured
audience and gave clear purpose and
objectives Speaker
captured audience with purpose and objectives and engaged the audience.
2. Visuals How well did speaker use visuals – graphics – slides to discuss topic? Speaker
used no
graphics, media clips, diagrams on
slides, Speaker used 5% of slides with graphics, diagrams, but mainly text Speaker used 50% of slides with graphics and 50% text Speaker used 70% of slides with graphics and 30% text.
Free of spelling, grammar errors Speaker used 90% of slides with graphics and 10% text. Free of grammar spell errors.
3. Content How well did speaker show sound
knowledge of topic, presenting information logically? Speaker did
not understand
the topic clearly and presented with little knowledge Speaker understood main topic but did not show an understanding to audience Speaker clearly understood
topic and
showed audience the
understanding Speaker clearly understood topic and explained concepts in own words Speaker clearly understood topic and explain concepts with good examples.
4. Non-verbal communication How well did speaker use relaxed and confident body language? Speaker’s body language showed discomfort, nervousness
. Speaker’s body language was somewhat
relaxed, but showed signs of nervousness Speaker’s body language was relaxed and
confident Speaker’s body language was
relaxed, confident with no nervousness Speakers body language was very relaxed, involved walking around viewing audience
5. Voice – tone – pace – volume How well did speaker use voice expressively,
avoiding monotonous tone, and Speaker’s
tone of voice, pace and volume was fast, difficult to hear, softly Speaker’s tone of voice, pace, volume was
becoming audible and clear, but
monotonous Speaker’s tone of voice, pace, volume was audible and clear. Speaker’s tone of voice, pace, volume was clear, loud, and expressive. Speaker’s tone of voice, pace, volume was clear, loud, expressive and matched body
language
paced presentation? spoken -
monotonous
6. Clarity of speech How well did speaker present his/her ideas clearly? Speaker was not clear when presenting Speaker was clear at erratic time when
presenting Speaker was
clear throughout presentation Speaker was clear and gave own ideas about
topic Speaker was clear, gave own ideas about topic, with
examples
7. Eye contact How well did speaker view – look at the audience whilst presenting? Speaker had minimal eye contact with the audience Speaker had
5% eye contact with the
audience Speaker had
50% eye contact with the audience Speaker had
70% eye contact with the
audience Speaker had 9095% eye contact with the
audience
8. Audience engagement How well did speaker engage the audience throughout presentation? Speaker did not engage
the audience Speaker made attempts to engage the
audience Speaker was successful with engaging the
audience Speaker engaged audience through questions. Speaker engaged audience through
identifying
individuals –
questions etc
9. Questions How well did speaker answer questions from lecturer/audie nce? Speaker did not answer lecturer’s questions Speaker
partially
answered one question from lecturer successfully Speaker
answered 2 questions from lecturer successfully Speaker answers some questions correctly and others incorrectly Speaker answered all
lecturer questions correctly
10. Structure How well did speaker structure his/her presentation – intro – body – summary? There was no structure to the presentation
from the
speaker There was
minimal structure to
presentation There was structure to the presentation There was equal time given to intro – body – summary of
presentation Speaker gave a lot of time to the ‘body’ structure of the presentation.
Additional comments:
Marking Cover Sheet
Name: Date: Student Number: __________
Assessor’s Name: Assessor’s Signature: __________________ Date:________
Section Comment First Sub
A/NA Resub
/Reass
A/NA
Introduction
A brief introduction (300 words maximum) which provides a brief introduction of the organisation’s nature and background including:
• terms of reference,
• relevant background information
• financial procedures used in the report.
Financial Analysis
1. Discuss at least 3 principles and practices of financial analysis
2. Discuss the importance of financial analysis for at least 3 users for the strategic management of the organisation.
3. By interpreting the information from the Income
Statement and Balance Sheet above, apply the principles and practices of financial analysis to provide a detailed analysis of profitability, short- and longterm solvency, efficiency and market value ratios (at least 2 ratios for each) and make recommendations for
senior management and various other stakeholders for both the year ended June 30, 2017 and the year ended June 30, 2018. Your analysis must include a discussion of:
• A definition and explanation of each ratio
• A comparison between the 2017 and 2018 financial years (favourable or unfavourable)
• A comparison with latest available industry benchmarks
• Reasons for the changes from 2017 to 2018
• Impact on stakeholders
• Recommendations for improvement
• Any other relevant information
4. Discuss the limitations (At least 2 for each) related to process (general) and results (specific) of financial analysis performed above in requirement 2.
Conclusion
Conclusions drawn from the
analysis (minimum 300 words).
Conclusion provided for each ratio.

Recommendations
Recommendations made for improvements for Folkstone Limited for 2017 & 2018.
Must include but are not limited to the feasibility of raising a bank loan or other finance.
Business report format
Report meets the standards of a business document suitable for presenting to senior management. i.e. use of appropriate formatting, has been spell checked, uses an appropriate standard of business English, inclusion of a table of contents and headers and footers (as appropriate) and suitable use of information which should be referenced using the current APA format.
Includes sections as required as per evidence & judgement statements
Overall Result