GBE 806 Financing Business Assignment

Assignment 1 – Guidelines

• Report Format : To , from, findings, conclusion , recommendations
• Calculate each set of ratios with the information given /use a balance of different ratios – research other ratios not covered in class to gain extra marks 
• Perhaps present financial data as appendices so as to allow written analysis within the body of the report
• Make comparisons between one year and the next and the industry average
• Try to delve into what problems might be highlighted by your analysis
• Consider strengths and weaknesses
• The assignment is focused on your analysis and interpretation of the data
• Consider the possible causes/consequences of increases or decreases in the data
• Consider realistic additional information to support your finding – eg interest rates, state of economy, the industry generally and competitors
• You need to provide evidence of reading around the subject area ; quotations from accounting textbooks, journals , newspaper articles etc - reference appropriately 
• Present your conclusions as to how you perceive the company to be performing based on your ratio analysis and your analysis
• Make recommendations as to how the firm might improve its position eg more borrowing, reduce overheads etc - for better grades – make actual changes eg increase sales by 10% reduce advertising spend by 20% - and carry these figures forward to produce a new balance sheet and profit and loss account for the firm – financial improvement plan – Be realistic and justify any suggested changes that you make
• Comment on the limitations of ratio analysis as a method of analyzing company performance
• Reference your work appropriately.