7bus2041 using financial data

Assessment Criteria z
Learning Outcomes: Knowledge and Understanding tested in this assignment:
5. evaluate financial and operating risks (both domestic and international) faced by organisations and the strategies for mitigating those risks 6. appraise corporate governance and ethical issues which might arise in relation to accounting and financial management.
Learning Outcomes: Skills and Attributes tested in this assignment:
7. advise financial and non-financial managers on financial issues
Feedback /Marking criteria for this Assignment

7BUS2041 Using Financial Data

Erica’s suggestion has been accepted and you have been employed as chief finance officer in Gentry Electronics. You have now been tasked to use the following financial data in evaluating the current situation with the company and make suggestions on the organisational strategies which will enable the creation and maintenance of value for Gentry. Your response should be presented in the form of a report covering the five questions below as sections of the report.

Data (£millions)	2021	2020	2019	2018
Inventory:
Raw Materials	242	198	155	128
Work in progress	116	77	49	33
Finished goods	567	482	398	257
Total inventory	925	757	602	418
Current assets	1800	1423	1183	841
Total Assets	2643	2523	2408	2090
Current Liabilities	600	590	525	420
Sales	9428	8674	7536	6840
Cost of goods sold	6,328	5,474	4,445	3,557
Net profit	754	987	979	958

Compute the current ratio, gross profit ratio, net profit margin ratio, inventory turnover days and Quick/Acid test for the four years.

(20marks)

Discuss two possible concerns Erica Harding and the management of Gentry Electronics will possibly raise regarding your suggestions in (c) above and offer two alternative sources of finance for Gentry?

Note: Please keep your ratio calculations as an appendix to the report. Use only the information in the main report

Submission requirements:

This is an individual assignment and the report submitted should be entirely your own

work.

You should present your evaluation of this case as a report clearly having an introduction, good/ clear sectioning, and conclusion. Please use the questions as a guide to the sections. Please use the module embedded academic English support on writing reports.

Please see the assignment section of the module Canvas website for further information on the requirements of the assignment and advice on how to put your report together.

Academic English for Business support is available through daily drop-ins from the CASE office. See the CASE workshop timetable on the CASE main website page for details.
Make full use of Library search to identify relevant academic material and the ‘Subject Toolkit for Business’ which contains links to other Information Databases and the Information Management contact details. (http://www.studynet1.herts.ac.uk/ptl/common/LIS.nsf/lis/4DAF5390094771C2802575ED004212BF)