Ssss

Managing Financial Resources

and

Decisions

Contents

Introduction 3

Task 1: Understanding the sources of finance available to a business 4

1.1Identify the sources of finance available to the business 4

1.2 Assessing the implications of different sources 4

1.3 Analysis of appropriate source of finance for the business 5

1.4 Assessing and comparing the costs of sources of finance 6

Task 2: Discussing the financial statements and preparing the Cash Budget 7

2.1 Explaining the importance of financial planning 7

2.2 The need of information for various decision makers in Green Supplies Ltd 8

2.3 Impact of equity finances on the balance sheet and income statement of Green Supplies 9

Task 3: Taking financial decisions based on financial information 10

3.1 Making reasonable decisions from cash budget 10

3.2 Calculation of Selling price and targeted profit of the business of Paracha Limited 11

3.3 Evaluating the viability some projects using the various investment appraisal techniques 12

Task 4: Assessing financial statements 14

4.1 Explaining the main financial statements of a business 14

4.2 Comparison of balance sheet and income statement of a sole trader and a public limited company 15

4.3 Assessment of Financial Statements of an organization based on the ratio 15

Conclusion 16

References 17

Introduction

Finance is one of the most important functions of a business. It is very important for starting, operating and expending a business. Green Suppliers Ltd. is a small company of fitness product supply. It planned to boom its business and needs finance from different sources. This is because the company does not have large financial resources on itself. The company get and option to finance from. Celtic is interested in investing in the Green Suppliers Ltd. but it can cost the independence in its business it continued for ages. Moreover, the investment of Celtic Group may not viable which came from the...