Module Assessment

MODULE PGBM01 - FINANCIAL MANAGEMENT & CONTROL

Submission Deadline Date: Monday 6th February 2023

Assessment weight: 100% of module

Outcomes Assessed: All module learning outcomes are assessed in this assignment.

Please note that this is an individual assignment

The policy of the University on Cheating, Collusion and Plagiarism applies.

You should therefore:

- Not complete your work with help from other students

- Reference all sources used in your work (using Harvard style referencing)

Submitting Your Work

Your completed assessment must be submitted by the deadline date

It should be submitted online, by uploading it to the module Canvas site (in the ‘Module
Assessment’ section)

You should submit your work as a WORD document

Grading and Feedback

Your mark and feedback comments will be available in the will be available from Monday 6th
March, on the module Canvas site (in the ‘Module Assessment’ section)

Word Limit
The maximum word count is 2,000 words (+/- 10%) in total overall to complete both sections

Please write the word count clearly on the front of your assignment.
 Assessment Instructions

Greenspace Supplies Limited makes and sells garden furniture and ornaments.
The financial statements for the business for the past two years are shown below:

Statement of Comprehensive Income

for the Year Ended 31st December

2020 2021

£000's £000's £000's £000's

Sales Revenue 6,780 6,220

Less: Cost of Sales:
Opening Inventory 850 780
Manufacturing Costs 4,321 4,223
5,171 5,003
Less Closing Inventory (780) (847)

Cost of Sales (4,391) (4,156)

Gross Profit 2,389 2,064

Less: Expenses
Selling & Distribution
Expenses 924 1,070
Administrative Expenses 202 323
Bad Debts written off 74 1,200 128 1,521

Operating Profit 1,189 543

Less: Interest Payable (235) (301)

Profit before tax 954 242

Less: Tax (241) (58)

Profit after tax 713 184

Less: Dividends Paid (162) (61)

Retained Profit for the year 551 123

 Statement of Financial Position as at, 31st December

2020 2021
£000's £000's
ASSETS
Non-Current Assets (net)
Land and Buildings 4,322 4,512
Equipment 1,476 1,617
Motor Vehicles 344 318
6,142 6,447

Current Assets
Inventory 780 847
Trade Receivables 1,278 929
Bank and Cash 407 16
2,465 1,792

Total Assets 8,607 8,239

EQUITY AND LIABILITIES

Equity
Ordinary Shares of £1 each 2,950 3,200
Accumulated Retained Profit 1,236 1,359
4,186 4,559

Non-current liabilities
Long term Borrowing 3,300 2,758

Current Liabilities
Trade Payables 594 891
Taxation 527 31
1,121 922

Total Equity and Liabilities 8,607 8,239

The business has recently appointed a new managing director, who requires information
regarding the financial performance and position of the business during the past two years.

After her early discussions with the management team of the business, she believes that:

- several long-term projects the business has invested in during recent years, have
produced disappointing financial returns

- this is partly due to inadequate financial evaluation of potential investment projects,

before they are approved to proceed

Required:
Prepare a report for the new managing director of the business, that:

Part (A)
Analyses the financial position and performance of the business in 2020 and 2021 in relation to:
1) Profitability
2) Efficiency (asset utilisation)
3) Liquidity
4) Gearing
5) Investment

Your report must be supported by the calculation of relevant ratios in each of these five evaluation
areas mentioned above. It should comment on changes from year to year, as well as their potential
implications for the business.

All calculations should be clearly shown in Appendices, including all appropriate workings, and should be made to
two decimal places where required.
(70% of Marks)

Part (B)
Critically assesses how each of the following techniques can provide useful information to guide
managers in the business responsible for long-term investment decisions:

i) Payback period
ii) Net present value

You may include illustrative calculations to support your report and help to demonstrate your
understanding

(These should be clearly shown in Appendices, including all appropriate workings)

(30% of Marks)
Enhancing your Mark
See the assessment criteria below, which indicate expectations at this level of study.

To enhance your mark, your work should:

1) Be concise, precise, well presented and clearly structured
2) Draw logical conclusions from the financial information you discuss
3) Synthesise information in a coherent and useful way
4) Be researched thoroughly - showing evidence of wider reading
5) Demonstrate critical understanding of financial management.
 Generic Assessment Criteria – Postgraduate
Categories
Grade Relevance Knowledge Analysis Argument and Structure Critical Evaluation Presentation Reference to Literature
86 – The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge, understanding and skills appropriate to the Level of the qualification. There is also
100% unequivocal evidence showing that all the learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this level it is expected that the work will be exemplary in
all the categories cited above. It will demonstrate a particularly compelling evaluation, originality, and elegance of argument, interpretation, or discourse.

76-85% The work examined is excellent and demonstrates comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also excellent evidence
showing that all the learning outcomes and responsibilities appropriate to that level are fully satisfied. At this level it is expected that the work will be excellent in the majority of the
categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse and some evidence of originality.

The work examined is of a high standard and there is evidence of comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is clearly
70 – 75% articulated evidence demonstrating that all the learning outcomes and responsibilities appropriate to that level are satisfied. At this level it is expected that the standard of the work will
be high in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse.

Directly relevant to A substantial Comprehensive Well supported, focussed Contains distinctive or Well written, with Critical appraisal of up-to-date
60 – 69% the requirements of knowledge of analysis - clear and argument which is clear and independent thinking; standard spelling and/or appropriate literature.
the assessment relevant material, orderly logically structured. and begins to and grammar, in a Recognition of different
showing a clear presentation formulate an readable style with perspectives. Very good use of a
grasp of themes, independent position in acceptable format wide range of sophisticated
questions, and issues relation to theory source material.
therein and/or practice.
Some attempt to Adequate Significant Generally coherent and May contain some Competently Uses a good variety of literature
50 – 59% address the knowledge of a fair analytical logically structured, using an distinctive or written, with only which includes recent texts
requirements of the range of relevant treatment which appropriate mode of independent thinking; minor lapses from and/or appropriate literature,
assessment: may material, with has a clear argument and/or theoretical may begin to formulate standard grammar, including a substantive amount
drift away from this intermittent purpose mode(s) an independent with acceptable beyond library texts. Competent
in less focused evidence of an position in relation to format use of source material.
passages appreciation of its theory and/or practice.
significance

40 – 49% Some correlation Basic understanding Some analytical Some attempt to construct Sound work which A simple basic style Evidence of use of appropriate
with the of the subject but treatment, but a coherent argument, but expresses a coherent but with significant literature which goes beyond
requirements of the addressing a limited may be prone to may suffer loss of focus and position only in broad deficiencies in that referred to by the tutor.
assessment but range of material description, or to consistency, with issues at terms and in uncritical expression or format Frequently only uses a single
there are instances narrative, which stake stated only vaguely, or conformity to one or that may pose source to support a point.
Pass

of irrelevance lacks clear theoretical mode(s) couched more standard views of obstacles for the
analytical purpose in simplistic terms the topic reader
 35 – 39% Relevance to the A limited Largely descriptive A basic argument is evident, Some evidence of a Numerous Barely adequate use of literature.
requirements of the understanding of a or narrative, with but mainly supported by view starting to be deficiencies in Over reliance on
assessment may be narrow range of little evidence of assertion and there may be formed but mainly expression and material provided by the tutor.
very intermittent, material analysis a lack of clarity and derivative. presentation; the
and may be reduced coherence writer may achieve
to its vaguest and clarity (if at all) only
least challenging by using a simplistic
terms or repetitious style
The evidence provided shows that the majority of the learning outcomes and responsibilities appropriate to that Level are satisfied – for compensation consideration.

30 – The work examined provides insufficient evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence provided shows that
34% some of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in some of the indicators.

15-29% The work examined is unacceptable and provides little evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence
shows that few of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in several of the indicators.
0-14% The work examined is unacceptable and provides almost no evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence
Fail

fails to show that any of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in the majority or all of the indicators.