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1. Financial management 2, Management accounting

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Looking for an exam taker for my Accounting and Finance online test due to the 18th of May 2022 at 9:30 am. Requirements: the test starts at 9:30 am. The test must be done/completed in 90 minutes and forwarded to me from the helper by the time due.
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Accounting and Finance Exam (50%) Online (Open Book) May 2022 You will need to answer three questions in the exam. Section A: Answer both questions 1. Financial management: Investment Appraisal 2. Financial Management: Sources of Finance Section B: Answer one question 35 marks 35 marks 30 marks There will be two questions on the paper to choose from. The possible topics are: Management accounting: absorption costing Financial accounting: interpreting company accounts Financial management: Investment appraisal or sources of finance
ACCOUNTING & FINANCE PRACTICE EXAM QUESTIONS INVESTMENT APPRAISAL Every Limited is considering two investment projects, S and T, but only has sufficient cash to undertake one of them. The projected cash flows of the two potential investments are set out below. Every Limited has a cost of capital of 10%. CASH FLOWS S T £000 £000 Initial investment (600) (600) Cash inflows Year 1 200 100 Cash inflows Year 2 250 200 Cash inflows Year 3 150 250 Cash inflows Year 4 190 200 Cash inflows Year 5 100 150 Cash inflow from sale of investment at the end of Year 5 90 130 REQUIRED: (a) For both potential investments calculate the payback period. (6 marks) (b) For both potential investments calculate the net present value (NPV). (21 marks) (c) In your own words, discuss which project should be selected and why. (8 marks) TOTAL: 35 MARKS Discount factors @ 10%: Year 0 1 Year 1 0.9091 Year 2 0.8264 Year 3 0.7513 Year 4 0.6830 Year 5 0.6209 SOURCES OF FINANCE A business wants to raise £2,000,000 for an expansion. The following options have been suggested: (i) Borrow from the bank at 8% interest (ii) Issue ordinary shares at their par value of 50p, which will require an annual dividend payment of 2.9p per share (iii) Issue preference shares with a par value of 55p, which requires a fixed dividend of 3.65p per share. REQUIRED: In your own words, describe the main features of the three finance options, identifying the cash outlay required and explaining the advantages and disadvantages of each of them. TOTAL: 35 MARKS
ACCOUNTING & FINANCE PRACTICE EXAM QUESTIONS SECTION B INVESTMENT APPRAISAL The projected cash flows of the two potential investments are set out below. CASH FLOWS Project 1 Project 2 £000 £000 Initial investment (900) (900) Cash inflows Year 1 200 250 Cash inflows Year 2 200 280 Cash inflows Year 3 300 280 Cash inflows Year 4 300 230 Cash inflows Year 5 450 200 The company’s cost of capital is 12%. REQUIRED: (a) For both potential investments calculate the net present value (NPV). (24 marks) (b) In your own words, discuss which project should be selected and why on the assumption that the company has limited capital and so can only undertake one of the projects. (6 marks) TOTAL: 30 MARKS Discount factors @ 12%: Year 0 1 Year 1 0.8929 Year 2 0.7972 Year 3 0.7118 Year 4 0.6355 Year 5 0.5674 SOURCES OF FINANCE In your own words, describe the characteristics, advantages and disadvantages of the following sources of finance: (a) Share issue (b) Debt (c) Retained earnings TOTAL: 30 MARKS ABSORPTION COSTING (a) Bumper Bike Manufacturing Company makes bikes and presents the following data for year 2021: · Direct materials per bike: £240 · Direct labour per bike: £280 · Planned production: 10,000 bikes · Variable manufacturing overhead expense per bike: £100 · Variable selling and administrative expenses per bike: £40 · Fixed manufacturing overhead expenses: £1,200,000 · Fixed selling and administrative expenses: £800,000 Required:  Using the data given above, compute the production cost of one bike under an absorption costing system. Overheads will be absorbed based on units of production. (10 marks) (b) Christophe’s Crane Manufacturing Company makes three models of crane and presents the following data for their newest model for year 2021: · Direct materials per crane: £1,200 · Direct labour per crane: £1,400 · Variable manufacturing overhead expense per crane: £500 · Variable selling and administrative expenses per crane: £200 · Fixed manufacturing overhead expenses: £2,100,000 · Fixed selling and administrative expenses: £1,600,000 Using the data given above, compute the production cost of one new model crane under an absorption costing system. Overheads will be absorbed based on labour hours. Total labour hours for all production for the year are 700,000 and all labour is paid at £14 per hour. (20 marks) TOTAL: 30 MARKS
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