TMC ACADEMY

BUSINESS SCHOOL

Post Graduate Study on Management

Assessment Kit

ACC707 Accounting and Finance

Assignment

Module: Level: Credit Value: Setter:

ACC707 TBC TBC Huyen Nguyen

Purpose of the Assessment

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The purpose of this assignment is to test communication skills together with the ability
to analyse, to interpret and to report. This assignment will also encourage research and
investigation.

Assessment Task
The assignment consists of two questions subdivided into different tasks, for a total of
50 marks. Included in this total are 10 marks for presentation, detailed citation,
referencing and good use of English in the assignment. Students are expected to
research widely to answer all the required questions in a structured and organised
manner with reference to published work.

This is an individual assignment and it is worth 50% of the total module mark.

Academic Honesty
Plagiarism will not be tolerated and could lead to your failure, so please make
sure you cite and reference correctly.

Submission deadline
Your answers should be submitted no later than 29 October 2023, at 11:59 PM
(Vietnam time). Submission of the essay is electronic only via e-campus.

Please keep in mind that late submissions will not be allowed. If you have any mitigating
circumstances that hinder your ability to submit on due date, please inform your module
lecturer before the submission date. To learn more about TMC Academy’s mitigating
circumstances policy please refer to e-campus.

Feedback
There will be a written feedback four weeks after the deadline for submission. You will
be informed when the feedback is ready.

ADDITIONAL GUIDANCE
1. All calculations must be detailed and presented clearly.
2. Use of published work (citing references) within text is expected.
3. A full list of references should be presented at the end of the case study.
4. Please avoid the use of ‘I, We, Us’ in your case study. You are expected to write in
third person.
5. Include the assignment front sheet which is attached to the assignment brief.

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6. Your answer should not repeat the question as it will be included in your word
count.
7. Formatting:
a. Font Type: Arial.
b. Font size 11/12.
c. Line spacing 1.5 to 2.
d. All pages must be numbered
e. All graphs, charts and tables should have a number and a title.
f. All text must be aligned to the left.

8. Guidance is available on e-campus related to Harvard Referencing.

9. Read this assignment brief and ask the module lecturer for clarification of anything
that is not clear.

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Assessment Learning Outcomes

Your assessment will be marked according to the extent to which you have
met the learning outcomes described below. You should therefore endeavour
in your assignment to meet these outcomes as fully as you can.
Learning outcomes

Knowledge and Understanding

a) understand why organisations budget and the process of budgeting

Subject - specific Skills

b) detailed preparations of the various budgets in an organisation

c) analyse and criticise role of budgeting in current business environment

evaluate possible alternatives

d) evaluating possible alternatives to budgeting

Key Skills

e) communicate and present effectively, in writing, using numeracy,

literacy and IT skills as appropriate

f) undertake effective research for additional information

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Assignment question – 50 marks

Question 1.

An Ice Cream Manufacturing Company (ICMC) have decided to launch a new

“budget range” of two different flavour of ice creams. Both will contribute
£1.20 in profit before promotion and depreciation on the factory.

The factory will cost £1.2 million upfront and £260,000 will be spent in the
first year to market the products. It is estimated that the project will have a
seven-year lifespan. £62,000 will be spent on marketing per year from year
two to year seven. There is a 40% chance that both products will be a
success, in which case 1.2 million will be sold.

If only one of the two ice cream flavours is successful then the estimated
sales will be 860,000 in year one. There is a 30% chance of this happening.
Failure of both ice cream flavours will result in sales of only 680,000 ice
creams.

If both flavours are successful in the first year then there are two further
possibilities:

i. 1.2 million sold in each of years two to seven.

ii. Only 400,000 are sold in each of the remaining years

The possibility of each occurring is equal.

If only one flavour is successful then there is a 40% chance of further sales
being 1.02m per year and a 60% chance of sales falling to 540,000 per year.

If both flavours are unsuccessful then the project will be abandoned with no
salvage value.

Assumptions:

∙ Ignore tax and inflation

∙ The company’s cost of capital is 8 per cent

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All amounts, unless otherwise stated, are paid and received at the end of
each year.

Required:

1. Using net present value, advise the company on whether or not to

continue with the project. Show all numbers in thousands. (20
marks)

2. Calculate the standard deviation of the project. (10 marks)

Answer:

1. There are 3 cases for the project:

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Conclusion:

1. NPV for the project >0 (2.192 thousand £). Therefore, the
company should proceed with this project
2. Standard deviation of the project is 2.192 thousand £

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Question 2.

Selected financial data of two competitors, Target and Wal-Mart, are

presented here. (All dollars are in millions.) Suppose the data were taken
from the 2014 financial statements of each company.

Required:

For each company, compute these values and ratios. (20 marks)

1. Current ratio
2. Debt to assets ratio
3. Earnings per share
4. Compare the liquidity and solvency of the two companies.

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Answer:

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 1. End of Assignment
Accounting & Finance Front Sheet

ACC707

NB. This sheet must be attached to any submission of Accounting &

Finance field module coursework ONLINE.

No assignment will be accepted without it.

Student ID _________________________________________

Student Name Nguyen Hien Thao

Title of Coursework ACC707 Assignment

Marking Tutor Huyen Nguyen

Hand in Date 29 October 2023

Checklist before submission

1. Have you read, understood and acted in accordance with the referencing
guidelines set out in the appropriate Accounting & Finance Module Guide.

2. Where you have quoted directly from or where you have paraphrased the
work of others, have you acknowledged and appropriately referenced the
source of your quotation in the body of the text?

3. Have you placed all direct quotations in inverted commas?

4. Have you listed and correctly cited all your sources in your bibliography?

Declaration by the candidate named above

1. I confirm that this is my own work (or, in the case of a group assignment,
the work of my group) and that, although I may have consulted others in the
course of assembling material for the work, the finished article has been
completed without help or participation of any other person (other than, in
group assignments, other members of the same group).

2. The work contains no material drawn from unattributed sources.

Student Signature ________ ________________

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Date Signed _____29 October 2023____________________

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