### Save Your Distinction Grade Using Most Accurate Online MGT200 Management Accounting And Finance Assignment Help Service!

Home   Course
Previous << || >> Next

MGT200 Management Accounting And Finance

DO YOU WANT TO EXCEL IN MGT200 MANAGEMENT ACCOUNTING AND FINANCE ASSIGNMENT - ORDER AT EXPERTSMINDS!

Learning outcome: 1. Apply capital budgeting practices and evaluate investment decisions.

2. Apply knowledge of working capital to effectively manage a business for a given situation.

3. Compare and contrast financing options for a given situation and make recommendations.

4. Discuss the principles of capital structure and cost of capital, and calculate the cost of capital.

5. Apply management tools to assist in the planning and control of business operations.

6. Use management accounting information to assist decision-making in a given business situation.

Question 1: A. Prepare a schedule showing the incremental revenue, incremental operating expenses and incremental depreciation during each of the next 6 years.

B. Calculate the accounting rate of return on the dyeing machine, using the initial investment as the denominator.

 0 1 2 3 4 5 6 Incremental Revenue 50,000 50,000 50,000 50,000 50,000 50,000 Incremental Operating Expenses 20,000 20,000 20,000 20,000 20,000 20,000 Incremental Depreciation 16,667 16,667 16,667 16,667 16,667 16,667 Net Incremental Earnings (Investment) (1,00,000) 13,333 13,333 13,333 13,333 13,333 13,333

Accounting Rate of Return

Initial Investment = PV of Earnings

PV of Earnings = 13333*PVAF(r%,6)

Therefore, r -6.03%

Accounting rate of return is the return calculated on accounting profit made through initial investment. Therefore, earnings will include the effects of depreciation.

Question 2: Identify the annual net relevant cash flows and use this information to assess the project on a net present value basis at 1 Jan 2014. Estimate the internal rate of return of the project.

 2014 2015 2016 2017 Units produced & sold 400 600 500 200 Per Unit: Sale Price \$1,400 \$1,400 \$1,400 \$1,400 Costs: Variable Labour \$200 \$200 \$200 \$200 Variable Material \$100 \$100 \$100 \$100 Per Unit Contribution \$1,100 \$1,100 \$1,100 \$1,100 Total Contribution \$4,40,000 \$6,60,000 \$5,50,000 \$2,20,000 Less: Administrative costs \$90,000 \$90,000 \$90,000 \$90,000 Lease Rental (advance for next year) \$1,00,000 \$1,00,000 \$1,00,000 \$- Total relevant Net Cash Inflows \$2,50,000 \$4,70,000 \$3,60,000 \$1,30,000

 Working Capital Outflow \$1,70,000 Plant purchased \$6,00,000 Advance Lease Rental \$1,00,000 Total Initial Outflow \$8,70,000

 2014-Beginning 2014-End 2015-End 2016-End 2017-End Relevant Cash flows \$(8,70,000) \$2,50,000 \$4,70,000 \$3,60,000 \$1,30,000 IRR 16% Discount Rate 15% Present Value \$(8,70,000) \$2,17,391 \$3,55,388 \$2,36,706 \$74,328 \$13,813

Therefore, Net Present Value = \$13,813

Hence, the project shall be accepted and the company shall produce the new laptop by getting the factory on Lease.

ORDER NEW MGT200 MANAGEMENT ACCOUNTING AND FINANCE ASSIGNMENT AND GET 100% ORIGINAL SOLUTION AND QUALITY WRITTEN CONTENTS IN WELL FORMATS AND PROPER REFERENCING!

Question 3: You are required to evaluate the management of working capital for Healthy & Fresh Ltd, based on above reveal, changes in its operating cycle and financing scheme.

Answer: A current ratio of 2:1 or above indicates that the company has a strong liquidity position. In the given case, Healthy & Fresh ltd have a healthy current ratio in 2012 (2.61:1), which starts to decline in 2013 and further in 2014. This shows that the company's liquidity is not as strong as it was in 2012. Moreover, with an increase in settlement period for debtors (37 to 47 from 2012 to 2014) and inventory turnover days (48 in 2012 to 65 in 2014) decreases liquidity further for the company to meet its short-term obligations.

With an increase in the average settlement period to creditors beyond the 30 days period in 2014 (31 days), the company loses on the 2% discount it gets within 10 days of payment "With an increase in Non-current assets and long-term finance, it can be concluded that the company is funding its non-current assets from loans along with some liquid reserves of their own. "

Question 4: A. You, the financial manager of Cando Franchise Ltd, is asked for prepare an analysis of the three alternatives for the board members to consider.

B. As a financial manager, you are also expected to give your comments on above three alternatives.

 Funds raised Borrowing 40,00,000 Ordinary shares 40,00,000 Preference shares 40,00,000 Annual NPBIT 8,00,000 8,00,000 8,00,000 Borrowing Interest 4,40,000 - - NPBT 3,60,000 8,00,000 8,00,000 Taxation 1,08,000 2,40,000 2,40,000 NPAT 2,52,000 5,60,000 5,60,000 Preference Dividends - - 3,52,000 Dividend available to Ordinary Shareholders 2,52,000 5,60,000 2,08,000 Proportion of Dividend available to existing shareholders 2,52,000 4,66,667 2,08,000 Dividend to New Shareholders - 93,333 -

As per the above solution, it is clear that Cardo Franchise Ltd. should opt for issuing 100,000 ordinary shares for funding the growth plan, as Plan B offers the highest share of dividend to its existing shareholders as compared to the other two plans. Moreover, the control of the firm would stay as usual with the family (as they will own 500,000 ordinary shares out of the total 600,000 shares i.e. 83.33% control).

24/7 AVAILABILITY OF TRUSTED MGT200 MANAGEMENT ACCOUNTING AND FINANCE ASSIGNMENT WRITERS! ORDER ASSIGNMENTS FOR BETTER RESULTS!

Tag This :- EM201940GAU510FAC, MGT200 Management Accounting And Finance Assignment Help

### Assignment Samples

 Describe strategies to take if outcomes do not provide positive results Describe strategies to take if outcomes do not provide positive results Information System-Information Technology for innovation Assignment Help information system-information technology for innovation assignment help - how organisations apply strategic use of IS/IT to achieve IS/IT-enabled innovation FNSACC603 Implement Tax Plans and Evaluate Tax Obligations Assignment Help fnsacc603 implement tax plans and evaluate tax obligations assignment help - Develop and Evaluate a Tax Plan: MCG Trust Change Management Assignment Help change management assignment help - This is an assignment on change management grouped in two parts. Professionalism and Your Personal Life Assignment Help professionalism and your personal life assignment help - the study focuses on the concept of professionalism and development of a personal life UUEC5100 - Economics for Decision Makers Assignment Help uuec5100 - economics for decision makers assignment help - UUNZ Institute of Business, New Zealand. Explain the profit maximization assumption Ethical Theories Assignment Help ethical theories assignment help - The solution is about the essay provided;where as taken three topics in the consideration & talking about the factors of case

Get Academic Excellence with Best Skilled Tutor! Order Assignment Now!