Managing Financial Principles and Techniques
BTEC Level 7
Advanced Professional Diploma in Management Studies
Managing Financial Principles and Techniques
Prepared for:
McCain’s Board of Directors
By
Arslan Irshad Dar
Tooting and Broadway consults
12 June 2010
Table of Contents
Introduction....................................................................................................1
Merits of accounting rate of return..............................................................................................1.1
Demerits of accounting rate of return.........................................................................................1.2
Merits of Payback Period.............................................................................................................1.3
Demerits of Payback Period........................................................................................................1.4
Merits of Net Present Value .......................................................................................................1.5
Demerits of Net Present Value...................................................................................................1.6
Merits of Internal Rate of Return...............................................................................................1.7
Demerits of Internal Rate Of Return..........................................................................................1.8
Financial Ratio Analysis.........................................................................2
Profitability Ratio......................................................................................................................2.1
Liquidity and Efficiency Ratio...................................................................................................2.2
Gearing Ratio...........................................................................................................................2.3
Linear
Advanced Professional Diploma in Management Studies
Managing Financial Principles and Techniques
Prepared for:
McCain’s Board of Directors
By
Arslan Irshad Dar
Tooting and Broadway consults
12 June 2010
Table of Contents
Introduction....................................................................................................1
Merits of accounting rate of return..............................................................................................1.1
Demerits of accounting rate of return.........................................................................................1.2
Merits of Payback Period.............................................................................................................1.3
Demerits of Payback Period........................................................................................................1.4
Merits of Net Present Value .......................................................................................................1.5
Demerits of Net Present Value...................................................................................................1.6
Merits of Internal Rate of Return...............................................................................................1.7
Demerits of Internal Rate Of Return..........................................................................................1.8
Financial Ratio Analysis.........................................................................2
Profitability Ratio......................................................................................................................2.1
Liquidity and Efficiency Ratio...................................................................................................2.2
Gearing Ratio...........................................................................................................................2.3
Linear
References: Books 1. Elliott B and Elliott J (2001) Financial Accounting and Reporting 5th Edition FT Prentice Hall. 2. Atrill, P. (2000) Financial Management For Non-specialist 2nd Edition Prentice Hall 3. Atrill, P. & McLane, E (2009) Management Accounting for Decision Makers , 6th edition, prentice Hall 4. Proctor R, (2006) Managerial Accounting for Business Decisions 2nd Edition, Prentice Hall. Web links 1. Investopedia. 2008. Financial Analysis. [ONLINE] Available at:http://www.investopedia.com/university/ratios/interestcoverage.asp. [Accessed 08 June 10] 2. Biz/ed. 2009. Financial Ratio Analysis. [ONLINE] Available at:http://www.bized.co.uk/compfact/ratios/index.htm. [Accessed 24 June 10].