Assessment e.g. Analytical report (use terms used in MDF)
Assessment code: 010/011/012 (delete as appropriate – code appears on MDF)
Academic Year: 2021/2022
Trimester: Tri 2, Jan 2022
Module Title: Business Finance
Module Code: MOD003319
Module Leader: Nidhi Gogia
Weighting: 50%, 30 credits
Word Limit: 2,500 words
This excludes bibliography and other items listed in rule 6.75 of the
1 – 2(see relevant MDF)
This assignment must be received by no later than 14:00 on Friday, 25
WRITING YOUR ASSIGNMENT:
• This assignment must be completed individually.
• You must use the Harvard referencing system.
• Your work must indicate the number of words you have used. Written assignments must not
exceed the specified maximum number of words. When a written assignment is marked, the
excessive use of words beyond the word limit is reflected in the academic judgement of the
piece of work which results in a lower mark being awarded for the piece of work (regulation
• Assignment submissions are to be made anonymously. Do not write your name anywhere on
• Write your student ID number at the top of every page.
• Where the assignment comprises more than one task, all tasks must be submitted in a single
• You must number all pages.
SUBMITTING YOUR ASSIGNMENT:
In order to achieve full marks, you must submit your work before the deadline. Work that is
submitted late – up to five working days after the published submission deadline - will be
accepted and marked. However, the element of the module’s assessment to which the work
contributes will be capped with a maximum mark of 40%.
Work cannot be submitted if the period of 5 working days after the deadline has passed (unless
there is an approved extension). Failure to submit within the relevant period will mean that you
have failed the assessment.
Requests for short-term extensions will only be considered in the case of illness or other cause
considered valid by the iCentre Adviser. Please contact XXXXXXXXXX. A request must
normally be received and agreed by the iCentre Adviser in writing at least 24 hours prior to the
deadline. See rules XXXXXXXXXX:
Mitigation: The deadline for submission of mitigation in relation to this assignment is no later than
five working days after the submission date of this work. Please contact XXXXXXXXXX
See rules 6.103 – 6.132: http:
Kashi is preparing the cash budget for the first 3 months of her business’s trading. Business is called
Kashi textiles and Kashi will be investing £25,000 of her personal savings to get it started. Rest of the
information is as follows:
a. In January 2022, Kashi will purchase a computer and a printer for use in the business for £1,980,
. Kashi expects to sell the following textiles:
January £4,500 to Moon Traders
uary £6,890 to Hans Traders
March £5,670 to Down Town shops.
c. Kashi expects to make the following purchases of textiles over the next three months:
January £3,280 for Moon Traders supplies
uary £5,120 for Hans Traders supplies
March £4,100 for Down Town shops’ supplies
d. All sales will be made for cash.
e. Purchases: 10% payment in the same month, 50% payment next month and remaining payment
in 2 months’ time.
f. Kashi will need to hire a printing machine to print her logos and the hiring charges will be £250
per month, payable in the same month. Hiring will be made in January and will be needed for all
the subsequent trading months.
g. Kashi has agreed to pay £250 per month to an accountant for his advice and preparation of
h. Other expenses have been estimated as follows:
£100 on delivery costs per month, payable at the end of each month.
£425 on telephone costs per quarter, payable at the end of the quarter.
£250 on other expenses, such as electricity and insurance, payable at the end of each month.
i. Kashi will be withdrawing £700 per month to cover her personal expenses.
Prepare the cash budget for Kashi textiles for first 3 months’ of trading from January to March,
2022.Show your workings separately XXXXXXXXXXMarks)
A. Define a Company. Explain its features and also explain advantages and disadvantages of
forming a public company XXXXXXXXXXMarks)
B. Discuss the crucial importance of cash to a business. Is the profit that a business makes a reliable
indicator of its cash balances? XXXXXXXXXXMarks)
C. What is the reason for the existence of Corporate Governance? Discuss some principles of good
governance as described by the Corporate Governance Code XXXXXXXXXXMarks)
D. Define Gearing and explain its advantages and disadvantages. Why might a bank be interested in
a company’s level of gearing? XXXXXXXXXXMarks)