prepare a Master Budget on Excel and provide an analysis of the financial situation of the company, that will demonstrate a clear understanding of management accounting.

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Students should prepare a Master Budget on Excel and provide an analysis of the financial situation of the company, that will demonstrate a clear understanding of management accounting and the learning objectives discussed in this course.
• Key contextual elements should include management accounting, when it comes to operational budgets, cash budgets, pro forma financial statements and also excel processing.

What do you understand by the term time value of money?

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Mortgage Problem

Suppose you are planning to buy a house using a 30 years mortgage financing.
Which house would you like to buy? What is its price? If you provide 20% down payment, what will be the approximate amount needed to complete the transaction, including closing costs?

How would you set up the timeline for this problem? What are the calculator keystrokes or excel formula for solving this problem?

What is the loan amount for the mortgage problem? What mortgage interest rate can you get? What will be the monthly payment? How much of that is interest and how much is principal repayment in the 1st and 2nd month?

How much principal amount will be remaining after the 85th payment?

Understanding Time Value of Money

What do you understand by the term time value of money? What do you feel about it? What are some of the reasons that money has a time value?

 

Discuss why Tesco may have switched their approach away from using the balanced score-card to measure and manage its overall performance

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Task:  For many years, Tesco (https://www.tescoplc.com/investors/) used a balanced scorecard called the Steering Wheel to measure and manage the performance of the organisation. However, in 2013 Tesco reported a 23.5% fall in half year profits: http://www.bbc.co.uk/news/business-24361465 Subsequently, Tesco has stopped using the Steering Wheel and now uses a “Big 6 KPIs” strategy.

Question: Discuss why Tesco may have switched their approach away from using the balanced score-card to measure and manage its overall performance, and how the new strategy may be utilised or improved to enhance future business performance.

Guidance: Look specifically at what Tesco did in the past and what they’re doing now in terms of their different approaches relate that to the theory in terms of what the balanced scorecard is how did Tesco to actually implement that. Questions to guide in terms of the sort of things that you’ll need to think about to understand and research in order to answer the question:

  • What is the balanced scorecard?
  • What is it designed to do?
  • What are its strengths and weaknesses?
  • What are KPIs?

 

  • How did Tesco’s Steering Wheel apply the balanced scorecard?
  • How does the Big 6 KPIs approach differ from this?
  • Why did Tesco change the method of performance measurement? (Think about what the two different approaches were about what they were designed to do. What the limitations, particularly of the Steering Wheel might have been, and how might the big key KPIs be a better approach test goes, given the context of where the organization finds itself)
  • What do competitors do?

 

  • Has Tesco done the right thing in changing to the Big 6?
  • Will this lead to improved performance?
  • Are there any changes they should make now?
  • How the new strategy might be used? (Demonstrate your abilities in critical analysis).

Format of the assignment is REPORT. Include Headings, Executive summary, Introduction, Main Part, Recommendations (critical analysis) and Conclusion. Main part should be divided on: 1)        About scorecard and KPI (briefly describe a theory) 2) Why Tesco changed approach 3) How the new strategy may be used or improved.

Originality: no more than 10%. Less is better.

You can illustrate Report by using Tesco examples. Diagrams, tables:  should be placed in the Appendix.

Sources: 25-30 – academic sources only. Material should be for management, not for students.

Word count: 2,500 words.

Why is budgeting important for business?

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1.Why is budgeting important for business?
2 please add a question at the end to continue a topic

Why do airlines make use of break-even analysis ?

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1. Why do airlines make use of break-even analysis ? Are there any characteristics of these companies, their operations and cost structures which can explain this?
2. Would the analysis of load factors be different for a budget airline compared with a traditional airline which is not competing based on prices?
3.please add a question to continue a topic

Present a business case for an existing business starting a finance company for the products it currently sells.

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Please present a business case for an existing business starting a finance company for the products it currently sells. The existing business (Company A) is well funded and currently has 250 million of its sales (equipment) being financed by an outside finance company on a yearly basis. Company A has beginning free cash of 25 million to finance existing customers in future purchases. The goal would be to finance 10% of all credit worthy customers and send 90% of those customers remaining business to existing Finance company to diversify risk.
Example:
If “Customer A” buys 1 Million dollars of equipment a year, then new Finance Company would finance 100K and send remaining 900K to outside finance company.

New Finance Company would be set up as an LLC, with 33.33 % ownership between Individual A, Individual B and the existing Company A. Company A would provide all capital but individual A and B would provide all “sweat equity”. Due to the competitive nature of the finance business the interest rates that new Finance Company could charge range between 3.5% up to 9%, with associated risk determining return. The new Finance company would like to risk spread to be 75% low risk (low return), 15% Mid risk (mid return) and 10% high risk (high return).

Expenses are projected to be administrative only. All regulatory documentation should be included in the Business Plan. LLC will be domiciled in State of Mississippi.

Determine how and in what situations you would refer to the DHS and other law enforcement and intelligence agencies.

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Imagine you are a state police officer in your home state. Examine the role you and your agency play in Homeland Security. Determine how and in what situations you would refer to the DHS and other law enforcement and intelligence agencies. Support your explanation. Evaluate the ethical concerns raised by policing and argue why these practices are or are not necessary. Decide if there is any validity to the counterargument of others who believe differently

How much is the firm’s net working capital, and what is the debt ratio?

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FINANCIAL MANAGEMENT – ASSESSMENT BPage 1 of 6ASSESSMENT Instruction : This Assessment is open-book. There is no time limit, and you may use your textbooks, other supporting material and and Excel financial formulae for your reference and assistance. Please answer all questions. Question 1 (15 marks) (Working with financial statements) Based on the information for the T. P. Jarmon Company for the year ended December 31, 2015: a)How much is the firm’s net working capital, and what is the debt ratio? b)Complete a statement of cash flows for the period. Interpret your results. c)Compute the changes in the balance sheets from 2014 to 2015. What do you learn about T. P. Jarmon from these computations? How do these numbers relate to the statement of cash flows

Compute the MSE, MAE and MAPE for all 3 models which you estimated.

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In your answers to the questions below, you should present your Eviews equation estimation output as it would be in published academic papers. (Examine several such papers, the approaches to presentation are fairly standard.) Raw Eviews output should be included only in an Appendix. 

The data required for the coursework is contained in the excel file `Coursework_2.xls’  in the coursework section on Moodle. The file contains daily return and 5-min realised variance data for FTSE100 from January 2000 to December 2017 that we will use to estimate and forecast the volatility of FTSE100.                                                                                                               Question 1 (30 points)

Consider the observations for the FTSE 100 stock index return series for the period ranging from 2000 to 2015. Build an appropriate ARMA model and test for ARCH effects in the series of daily returns.

Question 2 (50 points)

Using the observations for years 2000 to 2015, estimate the following models from the GARCH family, selecting the appropriate lags:

  • GARCH with normal innovations
  • GJR with normal innovations
  • a specification of your choice

always using as the conditional mean equation the ARMA specification that you identified in Question 1 above.

For each of these models, forecast the daily volatility (square root of variance) for the last two years in your sample. Plot your forecasts against the actual realizations of the variable (realised volatility proxy), as well as the forecast errors (i.e. actual – forecast). Interpret the results.

Question 3 (20 points)

Compute the MSE, MAE and MAPE for all 3 models which you estimated. According to each of these criteria, which model forecasts best and which model forecasts worst?

 

Describe the differences among the following three types of orders: market, limit, and stop loss.

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Describe the differences among the following three types of orders: market, limit, and stop loss. Provide examples of each in your own words.
What is a short sale? Provide an example in your own words.
Describe buying on margin. Provide an example in your own words.
Why is it illegal to trade on insider information? Provide an example in your own words.