• Home
  • Study Resources
    • group1
      • Business
        • Accounting & Finance
        • Business Environment
        • Business Law
        • Business Plan
        • Change Management
        • Economics
        • Human Resource Management
        • Innovation and Entrepreneurship
        • Operation Management
        • Organisational Behavior
        • Project Management
        • Sales & Marketing
        • Strategic Management
        • Business
        • Accounting & Finance
        • Business Environment
        • Business Law
        • Business Plan
        • Change Management
        • Economics
        • Human Resource Management
        • Innovation and Entrepreneurship
        • Leadership & Management
        • Operation Management
        • Organisational Behavior
        • Project Management
        • Sales & Marketing
        • Strategic Management
    • group2
      • Research
        • DBA Thesis
        • Dissertation Undergraduate
        • Dissertation Postgraduate
        • M.Phil / P.H.D Thesis
    • group3
      • Research Proposal
        • DBA Research Proposal
        • Proposal for Undergraduate
        • Proposal for Postgraduate
        • M.Phil / P.H.D Proposal
    • group4
      • Others
        • HND in Business
        • HND in Education
        • HND in health / social care
        • Knowledge Management
  • Blog
  • About Us
  • Contact Us
    • RegisterLogin
    • GET STARTED
Global Coursework
  • Home
  • Study Resources
    • group1
      • Business
        • Accounting & Finance
        • Business Environment
        • Business Law
        • Business Plan
        • Change Management
        • Economics
        • Human Resource Management
        • Innovation and Entrepreneurship
        • Operation Management
        • Organisational Behavior
        • Project Management
        • Sales & Marketing
        • Strategic Management
        • Business
        • Accounting & Finance
        • Business Environment
        • Business Law
        • Business Plan
        • Change Management
        • Economics
        • Human Resource Management
        • Innovation and Entrepreneurship
        • Leadership & Management
        • Operation Management
        • Organisational Behavior
        • Project Management
        • Sales & Marketing
        • Strategic Management
    • group2
      • Research
        • DBA Thesis
        • Dissertation Undergraduate
        • Dissertation Postgraduate
        • M.Phil / P.H.D Thesis
    • group3
      • Research Proposal
        • DBA Research Proposal
        • Proposal for Undergraduate
        • Proposal for Postgraduate
        • M.Phil / P.H.D Proposal
    • group4
      • Others
        • HND in Business
        • HND in Education
        • HND in health / social care
        • Knowledge Management
  • Blog
  • About Us
  • Contact Us
  • RegisterLogin
  • GET STARTED

Accounting & Finance

Global Coursework has huge resources and study materials for students across the world. It has now over 10 millions documents
  • Home
  • Blog
  • Accounting & Finance
  • Business Finance Assignment MOD003319 (GC01726)
Business Finance Assignment MOD003319

Business Finance Assignment MOD003319 (GC01726)

  • Categories Accounting & Finance

Table of Contents

1.0 Introduction.

2.0 Part 1

2.1 Meaning of Profit and Cash flow and how they are different

2.2 Meaning of Working Capital and, the meanings of Receivables, Inventory and Payables.

2.3 Working Capital affects Cash flow.

2.4 Application of the concepts to show how the way the company is being managed might affect its financial results.

2.5 Analyse and recommendation to improve this company’s cash flow through better Working Capital management.

3.0 Part 2.

3.1Purposes of preparing a budget

3.2 Traditional budgeting approach.

3.3 Alternatives budgeting approaches like Rolling budgets, zero-based budgets and activity-based budgets and their strengths and weaknesses.

3.4 The application of these methods showing how they might be used to plan future cost management for the case scenario.

3.5 Analyzing whether a traditional or alternative budgetary system is appropriate to all or any parts of the business in its planned future form..

4.0 Conclusion.

References.

 

1.0 Introduction

This assignment contains two parts. The first part contains the meaning of Profit and Cashflow and their differences. Then, it describes the meaning of working capital and, the meanings of receivables, inventory and payables. After that, this report represents the explanation of changing working capital that affects cashflows. Then, this report applies the concepts in the Mediterranean Delights Ltd (“MDL”) to show the financial results. Finally, part 1 includes the recommendation to the company for improving the cashflows through better working capital management. In part 2, this report mentions the purposes of preparing a budget including traditional budgeting systems, rolling budgets, zero-based budgets and activity-based budgets with their strengths and weaknesses. Then, it comprises the application of the budgeting methods in the Second Sight Plc Company to make plan future cost management. Finally, this report recommends which budgeting approach is suitable for the company.

2.0 Part 1

2.1 Meaning of Profit and Cash flow and how they are different

Ken Boyd (2017) stated that Profit is considered as financial benefit from a transaction.  It is calculated by the earning amount from something minus the spent amount to buy or produce this thing. Profit is also determined in the business by subtracting the producing or buying amount from the selling amount. Shukla (2016) also stated that profit is determined as total revenue less total costs. On the contrary, Cash flow is considered as the movement of money. Cash flows can be categorized into two types including cash inflows and cash outflows. Cash inflows indicate the received amount by the business and cash outflows indicate the paid amount by the business to third parties.

Ken Boyd (2017) also stated that Profits and cash flows are not the same things because profit occurs when the cost is less than income. On the contrary, cash flows can be generated in both ways like maybe inflows or outflows. Profit is not always considered as increase cashflows and expense is not considered always decrease cash flows. The main objective of every business firm is to gain profits (Ken Boyd, 2017). But cash flows can’t be the main aim of a business organization. Business firms can fail due to negative profits but not due to cash outflows.

2.2 Meaning of Working Capital and, the meanings of Receivables, Inventory and Payables

According to Shukla (2016), Working capital is a special type of capital that needs to run the daily operating activities of the business. It is determined by the difference between current assets and current liabilities. It is also termed as operating liquidity of a business firm. In addition, the amount of working capital is considered as net working capital (NWC). The current assets include cash, accounts receivable, inventory and finished products (Nilsson, 2016).  On the contrary, current liabilities include accounts payable, accrued expenses, and other operating expenses. The difference between these current assets and liabilities is termed as working capital.

Harold Averkamp (2018) stated that accounts receivable is considered as income that can be collected through cash in the one-year period. It occurs when a company provides services or sells goods on account. Account receivable is considered a current asset of a company. Nilsson (2016) stated that inventory is the amount of property, goods, or products in the store. Inventory is also termed as goods in different stages like raw materials, work-in-progress and finished goods. On the contrary, Accounts payable is considered as an expense that can be paid through cash in the one-year period (Harold Averkamp, 2018). It occurs when a company takes services or purchases something on account. Accounts payable is considered the current liability of a company.

2.3 Working Capital affects Cash flow

Senthil Kumaran (2015) stated that Working capital change indicates that the changes in networking capital from one period to another period. It is determined by the difference between current assets and current liabilities. The current assets include cash, accounts receivable, inventory and finished products.  On the contrary, current liabilities include accounts payable, accrued expenses, and other operating expenses. On the other hand, Cash flow is considered as the movement of money. Hazim Hassan (2018) stated that the change in working capital amount influences the cash flows. If the balance of an asset increases, cash flow from operations will decrease. If the balance of an asset decreases, cash flow from operations will increase. Any increase in working capital is considered as cash outflows and any decrease in working capital is considered as cash inflows…………………………………….

 

Full Documents Click Download Button

Free – Download Checkout Added to cart

  • Share:
author avatar
hossain420

Previous post

Innovation and Entrepreneurship Presentation Notes (GC01997)

Next post

Business Decision Making Sample Assignment (GC02230)

You may also like

Strategic Financial Management Sample Assignment
Strategic Financial Management Sample Assignment (GC01728)
18 September, 2021
MOD003319 Business Finance_ Assignment Sample
MOD003319 Business Finance_ Assignment Sample (GC01727)
18 September, 2021
Legal and Financial Environment Assignment
Legal and Financial Environment Assignment (GC011725)
18 September, 2021

    Treading Quarry

    Impact of Information Technology on Employee Performance in Retail Sector (GC02036)
    Impact of Information Technology on Employee Performance in Retail Sector (GC02036)
    11Jan2022
    Unit 16: Managing Communications, Knowledge and Information (GC015)
    Unit 16: Managing Communications, Knowledge and Information (GC015)
    04Feb2020
    Strategic Macro-Environmental Factor Analysis (GC012)
    Strategic Macro-Environmental Factor Analysis (GC012)
    04Feb2020
    Three Types of Economies and Economic Problem of Scarcity (GC011)
    Three Types of Economies and Economic Problem of Scarcity (GC011)
    04Feb2020
    Unit 16: Managing Communications, Knowledge & Information (GC010)
    Unit 16: Managing Communications, Knowledge & Information (GC010)
    04Feb2020
    Managing Communications, Knowledge & Information (GC009)
    Managing Communications, Knowledge & Information (GC009)
    04Feb2020
    The Macro Environment And Business (GC005)
    The Macro Environment And Business (GC005)
    04Feb2020
    Significance of Micro-Environment And the Context of Economics (GC004)
    Significance of Micro-Environment And the Context of Economics (GC004)
    04Feb2020
    Briefly Describe the Term Macro Economics (GC003)
    Briefly Describe the Term Macro Economics (GC003)
    04Feb2020
    HND in Nursing: Group Clinical Supervision (GC002)
    HND in Nursing: Group Clinical Supervision (GC002)
    04Feb2020

    Get Your Password

    Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

    Sign up for Newsletter

    Become an Instructor

    Join our community of students around the world and sell your courses.

    Learn More

    Our Main Categories

    • Business
    • DBA Research Proposal
    • Research Proposal
    • Research
    • Blog

    Get To Know Us

    • Home
    • Privacy
    • Terms
    • About Us
    • Contact Us

    Contact Us

    • info.globalcoursework@gmail.com
    • +44(0)7805072437
    • 56B Bigland Street, London, E1 2ND UK.
    Facebook-f Twitter Linkedin-in Youtube

    Global Coursework all Copyright Reserved @2020

    • Home
    • Privacy
    • Terms
    • About Us
    • Contact Us
    [miniorange_social_login shape="longbuttonwithtext" theme="default" space="4" width="240" height="40"]

    Login with your site account

    Lost your password?

    Not a member yet? Register now

    Register a new account

    Are you a member? Login now