Get Best Assignment Help For Introduction to Accounting

De Montfort University International College

Module Title: Introduction to Accounting
Programme: International Incorporated Master, Level 6
Module code: LIPC 3430, 15 credits
Term/semester: Autumn Term 2023
Module Tutor: Jonaid Rana/ Christiana Cole/ Regina Hule
Email address:
Issue date:
Submission date: Week 7, 17/11/2023    9:00 am
Total marks:  100
Overall weighting: 40%
Coursework

This is the first component of your assessment and it is weighted at 40% of the overall mark.

Learning outcomes:

  1. Explain the function of accounting within an international organisation (Individual Report 1)
  2. Demonstrate an appreciation of Management Accounting for managers (Individual Report 1, Seen Examination 1)
  3. Analyse the performance of an organisation (Individual Report 1, Seen Examination 1)

A major expectation of all assessments whilst at DMU/DMUIC is that students work in the English language and generate their assignments in the English language.  Initial work should therefore be produced in English, NOT a second language.  This means that the use of any language generation, paraphrasing or translation software, or web sites, is actively discouraged.  The use of such tools may be considered as Bad Academic Practice and as such the consequences outlined in the module guide will apply.  Failure to observe these instructions may result in a loss of mark awarded.

Assignment brief

You have been asked by a client to advice on the financial position of two companies in a similar trade sector. You have been supplied with the following financial statements.

Income Statement for the year ended 31 March 2016

Nixon Ltd Zip Ltd
Revenue

Cost of sales

 Notes £000

638

(331)

 £000

493

(297)
Gross profit

Distribution costs

Administrative expenses

 1 307

(36)

(99)

 196

(29)

(46)
Profit before taxation 172

(21)

 121

(22)
Profit for the year 151 99

Notes Nixon Ltd Zip Ltd
Non‐current assets (NBV):

Property, plant and equipment

Current assets:

Inventory

Trade and other receivables

Cash and cash equivalents

 1 198

60

35

2

97

 £000 £000 £000

111

58

43

101
Total assets Column 2 Value 2 295 212
Equity and liabilities:

Share capital (£1 share each)

Retained earnings

 Column 2 Value 3 50

161

212

 30

66

96
Non‐current liabilities:

Borrowings

Current liabilities:

Trade and other payables

Current tax payable

Bank overdraft

 2 74

10

84

 74

12

10

96

116
Total equity and liabilities 295 212

Notes to the financial statements:

  1. The non‐current assets held by the companies are as follows:
Nixon Ltd

£000

 Zip Ltd

£000
Land and buildings

Fixtures and fittings

Motor vehicles

 97

28

73

 43

17

51
198 111
  1. Trade and other payables for both companies include a proposed dividend. Nixon Ltd has proposed a dividend of £50,000 and Zip Ltd a dividend of £40,000.

Required:

  1. Calculate all theappropriate ratios (at least 2 from each group) and critically appraise the current financial position of each of the two companies.(40 marks)
  2. Define working capital cycle and calculate the working capital cycle of both companies and discuss how a company can improve the working capital cycle? (30 marks)
  3. What are the limitations of ratio analysis technique?Discuss in details.(30 marks)

Submission Guidelines

Submit your assignment -electronic copy only, in MS Word format, onTurnitinby the deadline date provided on your assignment.

Late Submission

If you are not able to complete your coursework on time the ONLY way to receive an extension is to apply at the Customer Service Desk on the ground floor, at least 48 hours in advance of the deadline. You will need to provide third party evidence to support your reasoning for requiring an extension.

Your tutor cannot approve an extension if you have not completed the official forms and your work will count as not submitted and receive zero.

Plagiarism

Please refer to plagiarism materials on Blackboard and in your module guide.