Financing Your Strategy Report Writing - Accounting and Finance Assignment Help

Assignment Task

Analysis of Financial Position

The first stage is to analyse the current financial position of the company. You will be provided with the Balance Sheet, Profit and Loss Report and other financial information for the 2021 financial year.

The Board would like you to analyse the following:

1. Viability for 2021

• Determine the cash flow break-even point for the company in 2021
• Create a Cost-Volume-Profit Graph to represent their viability for 2021

2. Liquidity for 2021

• Calculate the current ratio for 2021
• Calculate the quick ratio for 2021
• Calculate the operating cash cycle for 2021
• Determine the working capital for 2021

3. Solvency for 2021

• Calculate the debt-to-equity ratio for 2021
• Calculate the debt-to-total assets ratio for 2021
• Calculate the interest coverage ratio for 2021

4. Write a report of approximately 1–2 pages that provides the Board with a summary of the viability, liquidity and solvency position of the company at the end of 2021.

Financial planning

With the analysis complete, the board would like you to help them plan their finances for the upcoming financial year.

They would like you to complete the following:

1. Create an operating budget for the financial year 2022 financial year divided into quarters

• Create the sales forecast
• Create the production forecast
• Create the operating expenses forecast

2. Create the cash budget for the first 3 months of the financial year 2022 divided into months

• Create the collections cash flow
• Create the expenses cash flow

3. Based on the operating budget and cash budget, write recommendations to the Board on their ability to take on additional debt and expand the business. The recommendations should be approximately 2 pages long.

Final Report

The final report that will be presented to the Board of Directors should include the following:

1. An executive summary

2. The financial analysis should include the exact calculations for each ratio, not only the final results. The Board wants to assess how you calculate each of the ratios

3. An analysis report of approximately 1–2 pages; this is quite important, and the Board is not just interested in the numbers but are more interested in what they mean and how they relate to each other

4. The operating budget for 2022 broken down into quarters

5. The cash budget for the first 3 months of 2022 broken down into months

6. The recommendations on whether the company can increase its debt and expand its offerings - approximately 2 pages; this is the most important part of the report and should include information from the previous sections to justify your answers. The Board of Directors will be most interested in this section and be keen to see the creative solutions that will assist their business and that are backed up by the calculations in the earlier sections.

Please note, when writing your report to the Board of Directors you should back up your analyses, recommendations and solutions from the numbers you calculated. It is not enough to make a recommendation, it should be supported by the actual numbers themselves.

Financing your strategy : Assignment Format

1. Executive summary

What if there is a member of the board , might not be in the finance domain , basic understanding.

Financial position and planning with help of ratios & overall interpretation. Major corrective actions & recommendations

2. Financial analysis report ( Viability , Liquidity , Solvency)

Introduction:

what is financial analysis , what is its purpose, why is financial positioning checked.

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