Assignment: Introduction to Accounting
Brief:
You have been appointed as the new finance manager of ElijaFoods and asked to analyze the situation of the business and advise on a number of financial issues facing it (refer to the below case information). You are to write a report to the managing director, Mr. Samuel Abraham, to address specific issues brought to your attention as follows.
Part A: Financial Performance of ElijaFoods:
i. Calculate relevant ratios to complete the table in appendix C, and use the information in the table to support your answers to the other questions in this part. Present the completed table as an appendix to your report.
ii. Evaluate the financial performance of ElijaFoods for the year ending 31st December 2017. Your evaluation should cover the use of profitability, liquidity, efficiency and risk ratios.
iii. Express your opinion and give reasoned recommendations as to whether ElijaFoods should continue to use financial ratios in assessing business performance ornot.
Part B: Proposed Acquisition of ElishaFoods
i. Prepare cash budget for ElishaFoods using information in appendix E, and use the results to discuss the future cash situation of ElishaFoods. The budget should be presented as appendix B to your report.
ii. Given the cash and liquidity situation of both ElijaFoods and ElishaFoods together with any information you may consider relevant, advise whether or not ElijaFoods should enter into negotiations to acquire ElishaFoods. Give reasons.
iii. Assuming that management may decide to go ahead with the acquisition plan, suggest measures that may need to be implemented to enhance the management of cash in ElishaFoods.
Part C: Other expansion options
i. Perform an investment appraisal of the two other expansion options opened to ElijaFoods. Use the Net Present Value (NPV) method, the Pay Back method and any other method of your choice (three methodsaltogether).
ii. Advise the management of ElijaFoods which of the two options they should consider. Give reasons to justify your recommendation. Your recommendation should also take into account the superiority of each method of appraisal.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- INAC-Report-Autumn-2019-Statistics-Formulas.rar