Building High Performance Organisations (ACC11416)
Assessment B Trimester 2 2016-17
This document provides the assignment brief, specification and assessment criteria for your first assessment on the module: Building High Performance Organisations. You should note the word count, assessment weighting and deadline:
2000 (+/- 10%) word report contributing 45% to your final grade on the BHPO module
Deadline: Friday April 28, 2017 by 23.59hrs GMT
Assessment Regulations
All assessments are subject to the University Regulations
Feedback
Written feedback will be provided using the attached feedback sheet within 3 (working) weeks of the coursework submission: by May 19th 2017
The Business School
www.napier.ac.uk/business-school
Accounting Subject Group
Building High Performance Organisations ONLINE MODULE ACC11416
Assessment B 2016/17
Tutor Responsible for Assessment: Rachel Findlay
Assessment Type: Report
An investor is considering the purchase of shares in either Wallace or Gromit. Both companies are in the same business sector and their accounts are shown below:
Balance Sheet as at 31 March 2016
Wallace Gromit
£’000 £’000 £’000 £’000
Non-Current Assets
Cost 420 1,070
Accumulated depreciation (113) (144)
307 926
Current Assets
Inventory 138 167
Receivables 69 98
Bank 96 9
Total Assets 610 1,200
Current Liabilities
Payables (60) (120)
Interest - (1)
Corporation tax (10) (30)
Non-current Liabilities
10% Debentures - (80)
Total Liabilities (70) (231)
Total Net Assets
540
969
Share capital 370 900
Retained earnings 170 69
Total Equity 540
969
Continued over/
Income Statement for the year ending 31 March 2016
Wallace Gromit
£’000 £’000
Revenue 596 678
Cost of sales (394) (526)
Gross Profit 202 152
Administration expenses (36) (45)
Selling and distribution expenses (53) (56)
Operating Profit 113 51 Debenture interest - (8)
Profit before tax 113 43 Taxation (14) (19)
Profit for the year 99 24
REQUIRED:
(a) Calculate the following six ratios for both companies, clearly showing the ratio formula and figures used: -
(i) Current ratio
(ii) Quick ratio (acid test ratio)
(iii) Receivables collection period
(iv) Return on capital employed
(v) Gross profit percentage
(vi) Net profit percentage
(15% Weighting)
(b) Using the ratios calculated in part (a) prepare a report for the investor providing comments on the performance and position of Wallace and Gromit.
(30% Weighting)
(c) Suggest what further information might be useful to the potential investor before they decide in which company to invest.
(20% Weighting)
(d) It has been rumoured that Gromit is planning an expansion of their production facilities which will cost £2.5million. Discuss how this might be financed and any problems associated with the methods you have chosen.
(25% Weighting) Note: Presentation and citations/referencing – see template grading sheet.
(10% weighting)
Requirements
• See attached feedback sheet for assessment criteria
• Your response can be no longer than 2,000 words (excluding references and appendices). Your submission should use single line spacing • Up to a maximum of 3 appendices are permitted
• Where appropriate your work must be properly referenced and include a reference list (a bibliography is not required). For help, see the referencing guide in Moodle or http://www2.napier.ac.uk/ed/plagiarism/students.htm#guidelines.
Arrangements for Submission
• Please use the submission and Turnitin links on the module page on Moodle.
• All work submitted must have been completed by you. Please see Edinburgh Napier guidelines on how to avoid plagiarism available from:
http://www2.napier.ac.uk/ed/plagiarism/
Some general guidance
Citations
Please note that, while you are asked to use references where appropriate, remember that this type of report is normally used in a commercial situation for a client or colleague. The ratios you are asked to calculate are more or less standard and known to most experts and practitioners in the field. You may wish to cite the text book you used to obtain a ratio or to explain it. You should not need to cite peer reviewed journal literature for these aspects which are known to most, if not all, practitioners in the field. The same advice also applies to the discussion of both finance options, ratio discussion and other information.
Presentation
The report is set so that you can demonstrate your knowledge and analytical skills. While there are presentation marks you will see these are not very high. However, in presenting ratios to a client you should be mindful that these are used primarily as a comparison (for example against previous years/months/weeks, or against other companies or an industry norm). You should therefore consider presenting these in a table format (two columns one for each company). In terms of discussing the ratios you should consider breaking long sections of text into sub headings – for example one per ratio. These aspects are matters of good practice and make reading easier for your client (and your marker).
Word Count
Please note the word count. Writing to a set word limit is an academic skill and is a key part of the assessment. Any scripts breaching the word count instructions will have their grade moved down by one grade on the scale. Please mark your word count in bold at the end of your report. We will also sample check word counts to ensure compliance with this requirement.
EDINBURGH NAPIER UNIVERSITY
THE BUSINESS SCHOOL
ACCOUNTING SUBJECT GROUP
Assessment Criteria & Feedback
Matriculation Number: Date Submitted:
Date Marked:
Module: Module Number:
Assessment Criteria Fail
F5-F2 Weak F1-P1 Fair
P2-P3 Good P4-D1 Excellent D2-D5
Presentation (5%)
Calculation of ratios (15%)
Report on the performance of
Wallace & Gromit
(30%)
Further information for a potential investor
(20%)
Financing options and potential problems
(25%)
References
(5%)
Feedback on Submission
Grade:
Marked by: