Solution: ASSESSMENT TASK – Coursework

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ASSESSMENT TASK – Coursework

Module Code: BFH1027
Module Title: Professional Skills and Finance
Assessment Task(s) Coursework
Academic Year 2019/20

 

Learning Outcomes

 

On completion of this module students will:

 

  1. Recognise the skills necessary for effective undergraduate study
  2. Explain the importance of self-evaluation and PDP in career development
  3. Explain the needs of different users of accounting information and how financial information is prepared and presented to meet these needs.
  4. Explain the concept of investment appraisal

 

         Ability Outcomes

 

On completion of this module students will be able to:

 

  1. Present information effectively to others in a variety of formats
  2. Work with others
  3. Manage their own time effectively and evaluate their own performance
  4. Apply their knowledge of costs and market structures to their industrial sector
  5. Prepare reports, using ratio analysis on the financial performance of a business.
  6. Use financial and non-financial information for planning, decision making and control

 

 

 

This assessment task addresses the following learning outcomes from the module specification

 

Learning outcomes 3,4,8,9 and10 – 50% of module

 

 

Assessment brief

Coursework Instructions:

You are required to answer ALL 4 QUESTIONS.

Each question is marked out of 25.   

 

 

Question 1

 

a)    Robinson’s Hotel Ltd has the following information on the Non-current (fixed) assets at the start of financial year 2019.

 

Asset Group Original Cost

£000

Net Book value at start of the year

£000

Plant 500 500
Property 150 130
Vehicles 100 75

 

The following depreciation policies apply:

 

i)      The depreciation rate of the plant is 6% of the original cost each year.

ii)     Property is depreciated on a straight-line basis over 7 years. It was expected that the plant would be sold at the end of 7 years for residual value of £80,000.

iii)    Vehicles are depreciated on a reducing balance basis at the rate of 25%.

 

Calculate the depreciation charge for the year and the Net Book Value at the end of the year for each asset group.

 

(6 marks, 2 each)

 

b)    Robinson’s Hotel Ltd also has the following information on stock balances and purchases:

 

£000

●      Opening Stock            37,000

●      Closing Stock             27,000

●      Purchases                   115,000

 

Calculate the Cost of Sales for the financial year.

(1 mark each correct element, total 3 marks)

 

c)     You have the following information on sales and expenses:

 

£000

 

Sales Revenue                                         532

Wages & Salaries                                     140

Business Rates                                         34

Utility Costs                                               13

Marketing Costs                                        9

Maintenance Costs                                   21

 

Using this information and relevant information (Cost of Sales and Depreciation) from parts a) and b) in this question, set out the Income Statement for Robinson’s Hotel for the financial year by filling into the statement below:

 

Stone’s Hotel Ltd, Income Statement 2019
£000
Sales Revenue
Cost of Sales
Gross Profit
Less Expenses
Wages & Salaries
Business Rates
Utility costs
Marketing Costs
Maintenance Costs
Depreciation
Operating Profit

 

(10 marks)

 

d)    You have the following summarised information for Robinson’ Conferencing. Working capital total is £90,000:

 

Extract from Statement of Financial Position

 

£000

 

Non-current assets                       £450

Current assets                              £120

 

Non-current liabilities                    £350

Current liabilities                           ?

 

Equity & Reserves                        ?

 

i)      Calculate the value of Current liabilities

 

(2 Marks)

ii)     What is the value of Equity & Reserves?

 

(2 Marks)

 

iii)    Which of the following would not be required to calculate depreciation of a non-current asset?

a)    The residual value

b)    The depreciation method.

c)     The ownership of the asset.

d)    The cost of the asset

 

(1 Marks)

 

iv)   Depreciation is used so that:

a.     Non-current assets are valued fairly on the balance sheet

b.     Non-current assets are shown at market value on the balance sheet

c.     The cost of an asset is spread over the periods which benefit from its use

d.     There is sufficient cash available to replace non-current assets

 

(1 Marks)

 

Total : 25 Marks

 

Question 2

 

Managers of HBS Ltd is reviewing some options for new catering equipment.

 

There are two alternative project options (Project A & Project B) have been identified, each involving significant capital investment. The initial cash investment, project life, expected residual values and estimated cashflow benefit over the life of each project are summarised in the table below.

 

Project A B
Initial Investment £30,000 £50,000
Project Life 3 Years 4 Years
Residual Value Nil Nil
Cashflow
Year 1 +£15,000 +£10,000
Year 2 +£15,000 +£35,000
Year 3 +£25,000 +£35,000
Year 4 Nil +£20,000

 

a)     Calculate the Payback period for each project (in years and months) and state which project gives the better return under this measure.

(6 marks)

 

b)     Calculate the Net Present Value for each option (assume a 10% discount rate) and advise on the most suitable investment. Give reasons for your choice.

 

(10 marks)

 

c)     Discuss the Payback method and Net Present Value method as appraisal techniques, comparing their relative benefits and drawbacks.

(9 marks)

 

Total: 25 Marks

 

 

 

 

 

 

 

 

 

Question 3

A summarised Income Statement and Statement of Financial Position for TTD Ltd are shown below.

Income Statement    
Year Ending 31st December   2018 2019
£000 £000
Sales Revenue 900 940
Cost of Sales (200) (225)
Gross profit 700 715
Operating Expenses (562) (523)
Depreciation (49) (47)
Operating Profit 89 145
Interest (53) (46)
Taxation (13) (30)
Dividends (10) (50)
Retained Profit for Year 13 19

 

Statement of Financial Position    
As at 31st December   2018 2019
£000 £000
Non-Current Assets 953 925
Current Assets    
-Inventory 150 175
-Trade Receivables 65 75
-Cash 257 185
Current Liabilities (285) (310)
Non-current Liabilities (775) (703)
Total Net Assets 365 347
Share Capital 115 115
Reserves 250 232
Total Shareholders’ Funds

 

  365 347

 

Calculate the following financial performance ratios for each year.

 

i)      Operating Profit Margin

ii)     Trade receivables

iii)    Current Ratio

 

In each case state the formula you are using.

 

(12 marks)

 

a)    Calculate the percentage change in Sales revenue and Operating Expenses between 2018 and 2019.

 

(4 marks)

 

b)    Budgeted sales for January, to March are £70,000, £75,000 and £75,000. This is a new business, so no sales were made in December It is estimated that sales will be paid for as follows:

 

40% of the total will be paid in the month that the sale is made.

60% will be paid in the month after the sale was made.

 

What will be the amount of cash received in each of these months?

           

(6 marks, 2 each month)

 

c)     Name the three “master budgets” typically prepared by a business.

 

 

(3 marks, 1 mark each)

 

Total: 25 Marks

 

Question 4

 

HUD’s Tours is considering putting on a two-day trip to Manchester. The trip will be all inclusive, including coach travel, entry to tourist attractions, an evening meal and overnight hotel accommodation.

 

The coach and driver will be hired from a local coach company for the two days at a cost of £2,050. In addition, the hotel will charge £105 per person for the evening meal and hotel room and there will be further costs of £50 per person for entry to tourist attractions.

 

Requirement:

 

a)    Calculate the Contribution per unit at a sales price of £180.

(2 marks)

b)    Calculate the Contribution to Sales Ratio.

(2 marks)

 

c)     At a sales price of £160 per person, calculate the number of tickets HUD’s Tours must sell in order to break even on the trip.

(4 marks)

 

d)    If actual sales were 100 tickets, what would be the margin of safety in units and also % terms?

(4 marks)

 

e)    If HUD’s Tours wish to make a profit of £600 from sales of 55 tickets, calculate the price per ticket that must be set.

(6 marks)

 

f)      Calculate the number of tickets that must be sold at a ticket price of £180 to make a profit of £900.

 

(7 marks)

 

Total: 25 Marks

 

 

You are advised of the following:   

 

 

●       You are required to answer ALL 4 questions

●       Each question is marked out of 25

 

Answers should:

 

●       Be produced using fonts Arial/Calibri/Times New Roman, size 10-12 font.

●       Include a front cover with your name and student number, module, name of module tutor, word count, and submission date.

●       Refer back to your tutorial work and notes where you have covered key issues and developed knowledge that is relevant to the requirement of this assessment.

 

 

 

Marking criteria
 

1.    Please use the present value table (Provided). Please remember that the marking process involves academic judgement and interpretation within the marking criteria.

 

2.    The Learning Development Group are available to help you to understand and use the assessment criteria.  To book an appointment email them on busstudenthub@hud.ac.uk

 

3.    The University has regulations relating to academic misconduct, including plagiarism. The Learning Development Group can also advise and help you about academic conventions and avoiding ‘poor scholarship’ which can result in potential academic misconduct.

 

 

 

 

 

 

 

Submission information
Word Limit: n/a
Submission Date: 20th May 2020
Feedback Date: After the CAB in June 2020
Submission Time: 15.00
Submission Method: Electronically via Brightspace.  Papers submissions are not required.
Tutor Reassessment TBC

 

 

 


Appendix 1 Generic marking criteria

UG Generic Assessment Criteria (covering a range of types of assessment)

  Unacceptable

Work at this level

-does not address the task set or represents a wholly inadequate attempt

-requires a complete re-write

Unsatisfactory (Refer if required)

Work at this level will demonstrate

-an incomplete answer

-insufficient depth of understanding

-some serious errors and/or major omissions

-a potentially recoverable piece of work

Pass

Work at this level will demonstrate

-limited use of module material

-a basic level of understanding

-a simply descriptive approach

-some errors and omissions

Fair

Work at this level will demonstrate

-generally good use of some of the module material

-reasonable and coherent description of theory

-limited analysis and evaluation

-no major errors

Good

Work at this level will demonstrate

-good use of module material

-ability to compare and contrast material from a variety of relevant sources

-analytical ability underpinning logical argument

-well-structured, clear and consistent presentation, although there may be a few errors

Very Good

Work at this level will demonstrate

-accomplished discussion and application of theory

-clear ability to compare and contrast material from a wide variety of relevant sources

-some synthesis based on critical analysis

-well-structured, clear and coherent presentation, although there may be a few minor errors

Excellent

Work at this level will demonstrate

-a mastery of complex knowledge and ideas

– originality and insight derived from a mature depth of understanding of material that goes well beyond that provided in the module

– creative synthesis arising from critical analysis and evaluation of relevant information

– presentation that is clear, coherent and error free

Outstanding

Work at this level will demonstrate

-a mastery of complex knowledge and ideas

– originality and insight derived from a mature depth of understanding of material that goes well beyond that provided in the module

– creative synthesis arising from critical analysis and evaluation of relevant information

– presentation that is clear, coherent and error free

  0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-100
Knowledge of Theory, Concepts and Methods Does not address any relevant theories, concepts or methods Mentions some terminology relating to  relevant theories, concepts or methods Mentions some terminology relating to  relevant theories, concepts or methods wholly inadequate attempt at use or explanation Mentions some terminology relating to  relevant theories, concepts or methods inadequate attempt at use or explanation Relevant theory, concepts and models used or explained but some aspects may have been missed or misconstrued Most relevant theories, concepts and models used or explained in an appropriate and straight forward manner with some assumptions and implications recognised Appropriate selection of relevant theories, concepts and models used or explained insightfully with assumptions, implications and contextualisation recognised Appropriate selection of relevant theories, concepts and models used or explained insightfully with wide range of assumptions and implications recognised with highly appropriate contextualisation demonstrating excellent understanding Appropriate selection of relevant theories, concepts and models used or explained innovatively with full range of assumptions and implications recognised with highly appropriate contextualisation demonstrating excellent understanding of complex material Appropriate selection of relevant theories, concepts and models used or explained innovatively with full range of assumptions and implications recognised with highly appropriate contextualisation demonstrating exceptional understanding of complex material
Scholarship: Evidence of Reading and Research No evidence presented or what is presented is wholly irrelevant No evidence presented or what is presented is generally irrelevant Minimal evidence presented is generally irrelevant or lacking currency Minimal evidence presented uncritically and lacks evidence of independent research beyond core texts Evidence of limited but relevant reading which is presented uncritically and tends to use summary description Evidence of relevant reading which shows clear attempt at independent reading and some attempt at synthesis Evidence of range of relevant reading generally used critically which shows clear attempt at independent reading and ability to synthesise Evidence of wide range of relevant reading used critically which shows high degree of independent reading and a strong ability to synthesise Evidence of the fullest range of relevant reading used critically which shows a very high level of independent reading and an excellent ability to synthesise Evidence of the fullest range of relevant reading used critically which shows the highest level of independent reading and an outstanding ability to synthesise
Critical Reasoning No demonstration of critical thought No demonstration of critical thought No demonstration of critical thought No demonstration of critical thought but has potential to be developed Minimal demonstration of critical thought Demonstrates critical thought Often demonstrates critical thought Consistent application of well integrated critical thought Consistent application of excellently integrated critical thought Consistent application of outstandingly integrated critical thought
Use of Evidence: Analysis & Evaluation Does not analyse or any analysis is irrelevant Does not analyse or any analysis is irrelevant Does not analyse but basic concepts are understood Does not analyse but the potential for analysis is evident. Shows potential to develop arguments. Demonstrates limited analysis with some development of argument and related evaluation (if applicable) Demonstrates good ability to analyse and evaluate (if applicable) with arguments developed coherently Demonstrates very good ability to analyse a range of topics/issues critically. Evaluation is well supported (if applicable). Arguments are well structured  and logical. Demonstrates excellent ability to analyse a range of topics/issues critically and demonstrates ability to question ‘received opinion’. Evaluation is well supported and provides convincing conclusions (if applicable). Arguments are well structured, complex and logical. Demonstrates excellent ability to analyse a range of topics/issues critically and demonstrates ability to question ‘received opinion’. Evaluation is well supported and provides convincing conclusions (if applicable). Arguments are complex, lucid and persuasive. Demonstrates outstanding ability to analyse a range of topics/issues critically and demonstrates ability to question ‘received opinion’. Evaluation is well supported and provides convincing conclusions (if applicable). Exceptionally complex, lucid and persuasive arguments.
Clarity of Written Expression Incoherent and incomprehensible throughout Largely incomprehensible Generally comprehensible but language errors generally impede understanding and flow of reading Language errors often impede understanding and flow of reading The meaning is clear but contains language errors Generally fluent and accurate use of grammar and spelling Consistently fluent and accurate use of grammar and spelling Consistently fluent and accurate use of grammar and spelling employing appropriate genre Consistently fluent and accurate use of grammar and spelling employing appropriate genre and excellent expression Consistently fluent and accurate use of grammar and spelling employing appropriate genre and exceptional expression
Skill or Competence: INSERT NAME Not attempted Attempted but not demonstrated Inadequately demonstrated Insufficiently demonstrated to be considered competent Sufficiently demonstrated to be considered to have acceptable competence level Sufficiently demonstrated to be considered to have fair competence level Sufficiently demonstrated to be considered to have good competence level Sufficiently demonstrated to be considered to have very good competence Sufficiently demonstrated to be considered to have excellent competence Sufficiently demonstrated to be considered to have outstanding competence
Structure No structure Structure wholly inappropriate to the task Structure generally inappropriate to the task Structure does not meet expectations of the task Shows sufficient awareness of required general structure Demonstrates good organisation and awareness of required general structure Demonstrates consistently logical organisation and awareness of required general structure Polished and excellently organised; fully meets structural expectations Polished and excellently organised; fully meets structural expectations and demonstrates a highly imaginative approach Polished and outstandingly organised; fully meets structural expectations and demonstrates a highly imaginative approach
Oral Communication (monologue)

Inc organisation, supporting material and delivery

Barely comprehensible,

no connection to context. No audience awareness. Does not demonstrate any understanding

Completely inadequate,

Significant lack of clarity,

inconsistent, indifferent to context. Little audience awareness. Demonstrates minimal understanding

Significant lack of clarity,

inconsistent, minimal

connection to context. Inadequate audience awareness. Demonstrates an inadequate level of understanding

Insufficient clarity, little tailoring to context. Some significant

inadequacies, weak

expression with some systematic errors
. Insufficient audience awareness. Does not demonstrate sufficient level of understanding

Generally clear, some tailoring to context. Some flaws in expression, some systematic errors of expression. Generally engages audience. Demonstrates a sufficient level of understanding through extemporaneous delivery Appropriately

tailored to context. Fluent expression with articulate delivery. Generally engages audience. Demonstrates a general level of understanding through extemporaneous delivery

Persuasive delivery and

effectively tailored to context.  Engages audience throughout. Demonstrates a high level of understanding through extemporaneous delivery

Lively, eloquent persuasive delivery and very effectively tailored

to context. Engages audience throughout. Demonstrates excellent understanding through extemporaneous delivery

Lively, eloquent, highly

persuasive, sophisticated delivery, superbly tailored to context. Provides audience with high levels of engagement throughout. Demonstrates excellent understanding through extemporaneous delivery

Lively, eloquent, highly

persuasive, sophisticated delivery, superbly tailored to context. Provides audience with the highest levels of engagement throughout. Demonstrates outstanding understanding through extemporaneous delivery

Presentation of work Length requirements may not be observed; does not follow academic conventions; language and presentation errors impact on intelligibility Length requirements may not be observed; does not follow academic conventions; language and presentation errors impact on intelligibility Length requirements may not be observed; generally does not follow academic conventions; language and/or presentation errors may impact on intelligibility Length requirement met and academic conventions mostly followed. Minor errors in language or presentation Length requirement met and academic conventions mostly followed. Possibly very minor errors in language or presentation Fair standard of presentation; length requirement met and academic conventions followed Good standards of presentation Very good standards of presentation Professional standards of presentation Highest professional standards of presentation
Reflection No attempt at reflection

 

Some evidence of an attempt at reflection but does not constitute reflection. A wholly inadequate level of reflection. There is no link between self and relevant theories, models, concepts, and/or strategies. Viewpoints and interpretations are missing, inappropriate, and/or unsupported. Irrelevant exemplification. A level of reflection which does not meet minimum expectations. Insufficient linking between self and relevant theories, models, concepts, and/or strategies. Viewpoints and interpretations are insufficiently supported or supported with flawed arguments. Irrelevant exemplification. An adequate level of reflection. There is evidence of relevant linking between self and theories, models, concepts, and/or strategies. Viewpoints and interpretations are generally supported. Some relevant examples, when applicable, are provided. A fair level of reflection. There are some of instances where relevant links have been made between self and relevant theories, models, concepts, and/or strategies. Viewpoints and interpretations are supported.  Appropriate examples are provided, as applicable A good level of reflection. There are a number of instances where relevant links have been made between self and relevant theories, models, concepts, and/or strategies.

Evidence of analysis through questioning and challenging of assumptions leading to transformation of personal insight.

Well supported by clear, detailed examples as applicable.

A very good level of reflection. There are many instances where relevant links have been made between self and theories, models, concepts, and/or strategies.

Extensive evidence of analysis through questioning and challenging of assumptions leading to transformation of personal insight.

Well supported by clear, detailed examples as applicable.

An excellent reflection. Contains a wide range of instances where relevant links have been made between self and theories, models, concepts, and/or strategies.

Extensive evidence of analysis through questioning and challenging of assumptions leading to transformation of personal insight.

Well supported by clear, detailed examples as applicable.

An outstanding reflection. Contains a wide range of instances where relevant links have been made between self and theories, models, concepts, and/or strategies.

Extensive evidence of analysis through questioning and challenging of assumptions leading to transformation of personal insight.

Well supported by clear, detailed examples as applicable

Ethics, sustainability & Responsibility

(subject area)

Not considered or no relevance Consideration at a superficial level with minimal relevance to subject. Considered with relevant solutions identified but no detail relevant to the subject. Considered with relevant solutions identified but little detail relevant to the subject. Considered with relevant solutions identified and adequate detail relevant to the subject. Wide consideration with relevant solutions identified and appropriate detail relevant to the subject. Full consideration of implications for subject with range of solutions discussed in detail. Full consideration of implications for subject with wide range of solutions discussed in detail. Full consideration of implications for subject with extensive range of solutions discussed in detail. Full consideration of implications for subject with full range of solutions discussed in detail.
Ethics, sustainability & Responsibility

(professional practice)

Not considered or no relevance Consideration at a superficial level with minimal relevance shown to professional practice. Considered with relevant solutions identified but no detail relevant to professional practice. Considered with relevant solutions identified but little detail relevant to professional practice. Considered with relevant solutions identified and adequate detail relevant to professional practice. Wide consideration with relevant solutions identified and appropriate detail relevant to professional practice. Full consideration of implications for professional practice with range of solutions discussed in detail. Full consideration of implications for professional practice with wide range of solutions discussed in detail. Full consideration of implications for professional practice with extensive range of solutions discussed in detail.  Full consideration of implications for professional practice with full range of solutions discussed in detail.
Teamwork and Oral communication

(dialogue)

No evidence of

teamwork or engagement with views or learning of others.

Minimal teamwork, unaddressed

conflicts evident,

negative engagement

with difference

Marginal teamwork, conflicts

unaddressed, little

engagement with

difference

Little teamwork or

effort to collaborate

effectively, symptoms of lack of mutual respect.

Worked together much of the time,

With adequate level of engagement.

Some unresolved conflict but mostly respectful with evidence of listening.

Generally cohesive team, all members active most of the time, exercising mutual respect and evidence of effective dialogue most of the time. Any conflict resolved. Highly cohesive team, all members active, high levels of mutual respect and evidence of effective dialogue most of the time. Any conflict identified and resolved quickly. Very good team

cohesion, all

members active, high levels of mutual respect and evidence of effective dialogue throughout. Any conflict identified and resolved early.

Excellent team

cohesion, all

members consistently active mutually respectful and evidence of effective dialogue throughout. Any conflict identified and resolved early.

Exceptional team

cohesion, all

members consistently active mutually respectful and evidence of effective dialogue throughout. Any conflict identified and resolved early.

Critical peer review No comment made on the work of peers Lack of any reasoning in comments made on the work of peers Unsupported reasoning in comments made on the work of peers Insufficiently supported reasoning in comments made on the work of peers Evidence of reasoned comments made on the work of peers Evidence of ability to assess strengths and weaknesses in the work of peers Evidence of ability to assess strengths and weaknesses in the work of peers and judge areas for improvement Evidence of ability to assess strengths and weaknesses in the work of peers and judge areas for improvement. Provides commentary on assessment outcome and can offer insights into how it could be developed. Evidence of excellent ability to assess strengths and weaknesses in the work of peers and judge areas for improvement. Provides commentary on assessment outcome and can offer detailed insights into how it could be developed. Evidence of outstanding ability to assess strengths and weaknesses in the work of peers and judge areas for improvement. Provides outstanding commentary on assessment outcome and can offer detailed insights into how it could be developed.
Originality No evidence of any attempt at independent thinking Any attempt at independent thinking is irrelevant Any attempt at independent thinking is generally irrelevant Insufficient evidence of independent thinking and development of own ideas Limited evidence of independent thinking and development of own ideas Some evidence of independent thinking and development of own ideas General evidence of independent thinking and development of own ideas High level of evidence of independent thinking and development of own ideas Strong evidence of independent thinking and development of own ideas Outstanding evidence of independent thinking and development of own ideas
  0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-100

 

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