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M&E group assignment

Groups Assignment

Deadline: On 13 rd. Feb,2023

Module name: Business monitoring, evaluation and auditing

Group one

Question one

Hotel INEZA located in Huye district at the end of 2016 its income statement exhibits the net profit of
18,200,000 FRW while its balance sheet exhibits the total assets of 145,000,000 FRW. Discuss the return
on investment (ROI) of this hotel. Find out return on investment of this hotel

Question two

Kamana and Nyiraneza have a joint business of selling spare parts in down town, but now they are
struggling to meet all their expenses due to a decline in sales. One of strategies to increase their sales is
a local radio advertisement where they are expecting that one weekly advert will contribute to 30%
annual increase in sales from 180 million Frw to 234 million Frw , ceteris paribus (with all other factors
remain the same). Develop a logical framework of Kamana and Nyiraneza‘s business.

Group Two

Question one

Miss MUHOZA, collected data from UMUCYO MICROFINANCE related to its strategic plan of 5 years, the
causes of non-performing loans as well as the causes of the bad customer service. But, he shared these
data with her boy friend MUNYANEZA who was working in TWIGIRE MICROFINANCE, and disclosed all
the identities of all respondents to the non-concerned people. This led TWIGIRE MICROFINANCE to copy
all key data and applied them, before UMUCYO microfinance did, and some staff who had given
information on bad customer service in UMUCYO MICROFINANCE was fired. Discuss the professional
ethics principals which were violated.

Question two

INGAGI ZACU Hotel is located in Musanze district of the Nothern province with an annual turnover of
200 million Francs Rwandais targeting to be a leading hotel in Northern Province basing on its strategic
and accessible location, qualified professional staff, and a good customer care service delivery. Having
strategic and accessible location has made the hotel to get many customers but it becomes more
difficult to satisfy customer needs because there is no sufficient meeting rooms, appropriate restaurant,
no swimming pool and has only 20 bed rooms. INGAGI ZACU Hotel hired a consultant to help it finding
out the solution of the challenges described with recommendations to overcome those challenges.

After situational analysis, the consultant recommended to extend the hotel buildings in order to satisfy
its demand and lead the industry in the area by adding 1 big meeting room, 2 medium meeting rooms, a
big restaurant, a swimming pool and 20 more bed rooms.

Suppose you are the hotel manager, analyse and review this recommendation.
Group three

Question One

Agahozo Enterprise started in 2002 with 200 employees as compared to 421 employees today. It uses
local human capacity and resources to develop business which now benefit over 3,000 families. The
enterprise started with a small shop located near the road

The major focus, however, was to produce and process organic fruit and vegetable products in under
the 5 brands: including Juice, Chilli paper source, yoghurt, cereal flow and mineral water.

While conducting the audit in the enterprise, the auditor found out the following:

1. Records on production and sales are not separated for each production line to know the

respective costs and profits.

2. There is low customer satisfaction for certain products as far as quality is concerned

3. Financial books were not prepared in accordance with accounting standards.

4. Some staffs‘files were missing performance appraisal

5. The business income is always deposited to Enterprise ‘s owner individual account and it is

difficult to separate business income from personal income.

You are required to analyze those findings and formulate recommendations and prepare report to
Agahozo Enterprise.

Question two

INGWE Ltd, a travel agency company, has hired an auditor to assess the current situation and the future
success of the business. As an auditor, describe clearly any 10 relevant documents you will request.

Group four

Question seven

Ineza started a small shop of hardware in 2006 with 5 million as capital. She wanted to grow up from
5million to 20 million in two years and expand her shop in three other cities after four years. After three
years, the business experienced a decline in profit.

A business advisor, after analyzing the business situation recommended her to:

a. Purchase outside the country where products are said to be cheap to handle the problem of profit

decline.

b. Hire an accountant

c. Sell a variety of other products including toys.

Suppose you are INEZA, select the best decisions using the decision making matrix

Question two

Discuss in details advantages and disadvantages of Gantt chart

Group 5

Qn1. Calculate the net profit margin for the KANAKUZE Shop. Her income statement exhibits the net
sales of 790,000,000 Frw and net profit of 15,800,000 Frw and interprets the results.

Qn 2. Calculate the Return on investment (ROI) of a company with balance sheet exhibiting the total
assets of 143,000,000 Frw and income statement exhibiting the net profit of 2,145,000 Frw

End.

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