INSTRUCTIONS

This coursework has three sections questions.

1. Answer all question
2. Show all working out.
3. You must show all working out. You may use Excel, but you must show the working out using excel as a calculator

SECTION A[40marks]

QUESTION 1 [40marks]

This assignment requires each student to work on the published financial statements of TESCO Plc for 2017 to 2020. Note the statement below is the amended version of the actual financial statement. Students are required to work with the values here as given. Student are expected to read the actual financial statement to gain the general knowledge and skills necessary for interpreting statements of account and apply it here.

Required

Write a brief reporton Tesco plc for the years 2017 2020:

1. Analyse and evaluate the performance, liquidity and financial structure for the years 2017 2020.

Use the accounting ratios shown below and any other information relevant to Tesco plc. Information can be obtained from the annual report and accounts and any other source of evidence that you believe helps to explain the companys performance and position.

2. Highlight any 5 limitations in the use of accounting ratios that you found in your analysis and evaluation of the company over the three-year period. This may include reference to the movements in the companys share price.(40Marks)

SECTION B(60marks)

Question 2(48 marks)

Note: Do not use the T-format to prepare any of the statements.

Question3(12Marks)

Ben Ltd, a new business, starts trading in sports shoes on 1^stJanuary 2021 and expects to make the following transactions for the 6 months ending 30th June 2021:

• Sales are expected to be 400 units (sports shoes) per month for the 4 months from January to April then 200 units per month from May to June.

• The selling price will be 50 per unit.

• All sales will be cash sales with cash received in the same month the sale takes place.

• Payment for Purchases of inventory (sports shoes) will take place on the month after receiving the inventory. Each unit of inventory will cost 30.

• Wages are expected to be 700 per month and will be paid in the month in which they are incurred.

• Rent will be 2000 per month to be paid quarterly in advance (i.e., the rent payment for January, February and March 2021 will be made on 1st January 2021).

• General overheads are expected to cost 1000 per month and will be paid in the month in which they are incurred.

• Bought a laptop for the business in April for 2000

Required

2021. a) Prepare a Cash Budget for the 6 months from January to June 2021. Show the cash receipts and cash payments the business expects to have each month and the cash balance at the end of each month.(7marks)

2021. b) Prepare a profit budget for the 6 months ending 30th June 2021.(5marks)

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Academic Integrity and Plagiarism

Academic integrity requires honesty in your studies. You should not present another persons sentences or ideas as your own work. You should clearly identify quotations through the use of quotation marks and references to the sources. Failure to adhere to these academic standards may lead to allegations of academic misconduct, which will be investigated by the Academic Integrity team at QA.

Academic misconduct covers a variety of practices, such as:

• Plagiarism: copying another persons ideas or words and presenting them as your own work, without the use of quotation marks and/or references.
• Self-plagiarism: reproducing parts of one of your assignments in another piece of work.
• Inventing, altering or falsifying the results of experiments or research.
• Commissioning another person to complete an assessment.
• Collaborating with others in the production of a piece of assessed work which is presented as entirely your own work.
• Cheating in an exam (e.g. by taking revision notes into the exam room).
• Ghosting ( e.g you buy a piece of work )

For full details of academic misconduct and how allegations are investigated, see the relevant section of the Universitys academic regulations:https://student.londonmet.ac.uk/your-studies/student-administration/rules-and-regulations/academic-misconduct/