(Done Paper) Referencing Styles : Harvard Scenario: You work as a finance manager within the Head Offices of Green Supplies Ltd. You have been asked to assist t

(Done Paper) Referencing Styles : Harvard Scenario: You work as a finance manager within the Head Offices of Green Supplies Ltd. You have been asked to assist t

Scenario: You work as a finance manager within the Head Offices of Green Supplies Ltd. You have been asked to assist the management team in preparing and forecasting the company’s expansion. Green Supplies Ltd is a small private company who began trading in April 2013. The company supplies fitness products online to the public; specialising in midrange sporting goods and equipment. In 2014, it wishes to increase its activity in the market and as such need to identify a va … View More Scenario: You work as a finance manager within the Head Offices of Green Supplies Ltd. You have been asked to assist the management team in preparing and forecasting the company’s expansion. Green Supplies Ltd is a small private company who began trading in April 2013. The company supplies fitness products online to the public; specialising in midrange sporting goods and equipment. In 2014, it wishes to increase its activity in the market and as such need to identify a variety of options for finance. Your research has shown that the Celtic Group would be interested in investing in Green Supplies Ltd. This could be an option for the company and will be something for you to consider, however, in the event that this investment is not viable, other options of finance must be explored. The Celtic Group has been keen to enter into a deal of this nature as market research indicates that internet related businesses are expected to grow in the UK and globally. Your line manager has asked you to explore the cost and profit implications of various sources of finance that would be available to Green Supplies Ltd. In particular, the executives within the group want to know what the costs would be if the group was to accept the investment offer from the Celtic Group. Requirements: Task1: (a) Identify different sources of finance available to Green Supplies Ltd. This should include raising funds through a combination of internal and external sources of finance. You are required to select at least 5 sources of finance. (Covers AC1.1) (b) Assess the implications of different sources of finance and what are the legal, financial and dilution of control implications (percentage ownerships) and risks of bankruptcy. 4 (c) Evaluate appropriate sources of finance for your business: you must choose 3 sources that would be appropriate for Green Supplies Ltd; and discuss the advantages and disadvantages of your financing choice. (d) Analyse the costs of your chosen sources of finance for Green Supplies Ltd. Provide a brief explanation of how they would be shown in the Income Statement and in the Balance sheet. To achieve M1, State which of the source of finance explored in part (c) is a best fit for Green Supplies Ltd. Justify your choice and explain why you consider this choice to be the best fit for the company’s future plan. (Task 1 covers assessment criteria Task 2 (a) Explain the importance of financial planning and discuss why it is important to the success of Green Supplies Ltd. (b) Assess different information need of each decision makers of an organisation. Identify and assess the information that is needed for a range of decision makers. (c) Explain the impact of loan and equity finances or investment on the balance sheet and income statement. To achieve M2, You are required to identify the information needs of internal and external stakeholders and you must choose at least five stakeholders for Green Supplies Ltd.

Click to Download Solution

Purchase Solution $78

Loader Loading...
EAD Logo Taking too long?

Reload Reload document
| Open Open in new tab

Download [20.34 KB]

By | 2018-08-25T17:21:43+00:00 August 25th, 2018|Business|