Module title Fundamentals of Business Finance Module Leaders: Sheuly Ahmed

Module code: MGBBT1FBF Jasim Ali Rathore

Assignment No. 2 Assessment 50%

Assignment type: Case Study Report ( 2000 Words ) weighting:

Submission date Friday 24th May 2024 Target feedback 3 weeks from the
Submission time: 14:00 time and date: Submission Deadline

Assignment Brief

This assignment requires you to demonstrate your skills to analyse and interpret information produced by
the business organisation. You are expected to show your knowledge about financial statements. You will
be required to illustrate knowledge and understanding of different financial ratios and how they can be
used to improve the performance of an organisation.

A case study report is used to demonstrate an understanding of the analysis and interpretation of
information produced by key financial statements. Also, the case study will be used as the basis for
explaining the terms used within the main financial statements.

Do not attempt the assignment without the assignment brief. Use of the template is highly recommended.

This assignment has been designed to provide an opportunity to demonstrate the achievement of
the following module learning outcomes:

LO 1 Understand and explain the purposes of the financial information produced by businesses

Explain the structure and terms used within the main financial statements and undertake the
LO 2 analysis and interpretation of financial statements.

Demonstrate appropriate academic writing skills, referencing and good academic practice and
LO 3
make decisions on organising material in a logical and coherent way with an audience in mind.

Case Study – 7 Seas Onboard Restaurants

With wonderful views of the wide-open sea, the 7 Seas Onboard buffet restaurant serves a variety of
delicious appetisers, hot and cold starters, main dishes, desserts, and cheese on DFDS Seaways ferry
routs. DFDS is one of Europe’s leading ferry operators. Customers can put their own favourite
combinations together as its ‘all-you-can-eat’ they can visit the buffet table as many times as they wish.
The restaurant offers a little bit of everything, with a wide selection of seafood, traditional meat dishes,
salads, cheese, and pastries, as well as a very popular children’s buffet for tourists.
You have been working in the hospitality industry for 10 years with different companies at different

1
positions at operational level. After completing studies in business and tourism management you have
started working at 7 seas Restaurants as Business Planning assistant to operations manager. The
operations manager wants to use of your knowledge about Business Finance and experience in the
hospitality industry for future planning. Operation’s manager intends to introduce changes in system of
operating on different routes of DFDS Seaways. But he needs your input to compile a report for senior
management. You received following memo from your operations manager, regarding this case:

To: Business Planning Assistant

Date: 20th April 2024.
From: Christina, Operations Manager
Subject: 7 Seas Onboard Restaurants - Financial Information

You are aware that senior management is concerned with the quality and results shown in the financial statements
prepared by the accounts department. The file attached contains a company's Income Statements and Balance Sheets
for the past five years, I would like you to examine (describe, reflect, and evaluate) the financial information and
compile a report by Friday morning to discuss the detailed financial analysis of the company over the 5-year period.

Regards

Christina
7 Seas Onboard Restaurants Ltd.
Income Statement
All figures are in millions.
Not
e
Description 2019 2020 2021 2022 2023
01 Net Revenues 232 406 893 1140 1553
02 Cost of Production 253 466 408 431 680
Gross Profit -21 -60 485 709 873
03 Marketing and Promotions 15 20 35 50 65
04 Administrative expenses 25 40 65 75 80
05 Energy and Insurance 40 70 110 155 175
06 Salaries of Support Staff 20 10 20 25 30
Operating Profit (EBIT) -121 -200 255 404 523
07 Financial Expenses 15 20 25 30 35
Profit before Tax -136 -220 230 374 488
18 Corporate Taxe -34 -55 58 94 122
Net Profit for the Period -102 -165 172 280 366

Statement of Financial Position

2
 All figures are in millions.
Not
2019 2020 2021 2022 2023
e Assets
Fixed Assets:
Kitchen and Dining
Utensils 248 199 337 504 530
Catering tools and
Equipment 148 207 283 334 350
Furniture and computers 1272 1551 1491 1604 1700
Current Assets:
Inventories or Stock 6 14 8 7 6
Receivables from DFDS 680 1076 3385 2753 2500
Other trade Receivables 34 45 44 34 40
Prepaid Insurance 22 57 2 1 4
Investments in DFDS 0 0 121 0 20
Cash at bank and in hand 305 503 2 359 400
Total Assets 2715 3652 5673 5596 5550

Not
2019 2020 2021 2022 2023
e Equity & Liabilities
Preferred Share Capital 25 25 25 27 28
Ordinary Share Capital 179 176 212 269 215
Share Premium 218 495 262 341 291
Retained Profits 970 931 1586 2898 3000
Total Equity 1392 1627 2085 3535 3534
Non-Current Liabilities:
Long-term Loans 132 113 8 338 320
Current Liabilities:
Short-term Loan 6 6 102 0 10
Salaries Payables 30 38 38 75 35
Payable to Suppliers 1128 1840 3354 1508 1540
Corporate Tax payable 0 0 0 34 30
Other Short-term Liabilities 27 28 86 106 81
Total Liabilities & Equity 2715 3652 5673 5596 5550

Task Description

1. Introduction: Provide an overview of the aims and objectives of the case study report.
Briefly Define financial information (150 words).

2. Discuss motives of the following stakeholders for financial information of 7Seas Restaurants (300 Words):
a) Government (HMRC)
b) DFDS Seaways
c) Suppliers of raw materials
d) Potential Investors
e) Banks and Financial Institutions

3
3. Briefly discuss the purpose and characteristics of good financial information by explaining how
they address the motives of the above-mentioned stakeholders for financial information (500 words).

4. Calculate the following ratios for 7 Seas Onboard Restaurants and reflect on their development for the
given period (600 words):

i. Gross Profit Ratio

ii. Operating Profit Ratio
iii. Net Profit Ratio
iv. Return on Investment
v. Return on Equity
vi. Assets Turnover Ratio
vii. Current Ratio
viii. Quick Ratio
ix. Equity Ratio
x. Debt Ratio

Prepare a detailed report on the company's performance in terms of profitability, Efficiency, liquidity, and
default risk development during the 5-years period.

 What does each ratio generally explain about a company?

 What does the development in the ratios explain about the company?

5. Briefly discuss important limitations of the ratios analysis (300 Words)

6. Conclusion: Consolidate the key findings and overall remarks and suggestions (150 words)

Case Study Report - Formatting

The case study must be formatted in professionally. An academic case study typically uses following
format.
 Font name: Times New Roman
 Font size: 12 points
 Line spacing: 1.5.
 Alignment: Justify
 Be consistent in formatting, headings, and subheadings.
 Spacing between paragraphs must be consistent.

Referencing and research requirements

A minimum of 15 references is required. Students are required to use the sources provided on Moodle.

4
Please reference your work according to the CCCU Harvard style.

Work will be assessed - the grading descriptors for Level 4.

Your work will be assessed on the extent to which it demonstrates your achievement of the stated learning
outcomes for this assignment and against key criteria, as defined in the University’s institutional grading
descriptors. If it is appropriate to the format of your assignment and your subject area, a proportion of your
marks will also depend upon your use of academic referencing conventions.

Submission Guidelines

This assignment should be submitted electronically via Moodle (module tutors will discuss this process with
you during class time).

 Please ensure that your work file has been saved in Microsoft Word format. Your file must also contain
at least 20 words of text, consist of fewer than 400 pages and be less than 40MB in size.
 You can submit your work as many times as you like before the submission date. If you do submit your
work more than once, your earlier submission will be replaced by the most recent version.

 Once you have submitted your work, you will receive a digital receipt as proof of submission, which will
be sent to your forwarded e-mail address (provided you have set this up). Please keep this receipt for
future reference, along with the original electronic copy of your assignment

Late Submissions

You should submit all work for summative assessments by the deadline. Work submitted up to three
working days after the deadline will be accepted and marked, but the mark will be capped at the pass mark
(40%) unless there is a valid reason for the late submission (i.e., having been granted an extension to the
deadline or a deferral under the terms of the Extenuating Circumstances Policy).

Work submitted more than three working days after the deadline without a valid reason will not be
accepted and will be recorded as zero (refer to module handbook).

Core Readings
1. Weetman, P. (2019) Financial accounting. 8th ed. Harlow: Pearson
2. Atrill, Peter and McLaney, E. J. (2018) Financial accounting for decision makers. 9th ed. Harlow: Pearson
3. Atrill, Peter and McLaney, E.J. (2018) Accounting and Finance for Non-Specialists. 11th ed. Pearson

News & Magazines:

 The Financial Times
 www.accountancyage.com

5
Journals
 Financial Management Analyst

6
 Weighting %
Area Reference (Must add up to 100 in Criteria 100-80 : Excellent 79-70 : Very Good 69-60 : Good 59-50 : Sound 49-40 : Satisfactory 39-20 : Fail 19-0 : Fail
multiples of 10)
Knowledge Knowledge and understanding of Demonstrates an accurate, Shows a systematic and accurate Sound descriptive knowledge of Selection of theory is satisfactory, In this assignment some of the In this assignment there is a lack
A) Knowledge & Understanding

theory are detailed and beyond systematic theoretical understanding of key subject- key theories with appropriate and terminology, facts and theories presented are not of relevant subject-specific
Knowledge and application of what has been taught. understanding of the subject and a specific theories, which are application; sometimes balanced concepts are handled accurately, appropriate. Terminology, facts, theory.
subject and theories Appreciation of the limits of range of key theories. appropriately integrated within the towards the descriptive rather but application and understanding and concepts are presented
1 30 subject-specific theories Appropriately selected theoretical context of the assessment task. than the critical or analytical. are generalised. inaccurately and/or with omissions
demonstrated in the work. knowledge is synergised into the in key areas. The application
Approach to assessment task is overall assessment task with and/or understanding
clearly, appropriately, and some appreciation of the limits of demonstrated is extremely
theoretically informed. subject specific theories. limited.
Information Uses initiative to seek out a broadSelects a range of highly relevant Selects appropriate information Selects appropriate information Selects generally appropriate The selection of information here The selection of information here
range of highly relevant information. Demonstrates and processes it thoroughly with and evaluates and comments on it information and shows ability to is not appropriate to the task and is not appropriate to the task and
2 20 Information gathering/ information and synthesises and understanding of the complexity of some critical evaluation. critically, includes some readings evaluate and comment on it there is not enough evaluation of it it is not evaluated systematically.
processing evaluates it effectively. the information and processes it beyond the set range. adequately. to support the work.
effectively.
Sources Significant use is made of primary Significant use made of primary Uses a balanced combination of Some use of primary sources, but Mostly relies on set secondary The work draws on some set The submission is based on
sources, in conjunction with high sources in conjunction with high primary and high-quality generally reliant on appropriate sources. Use of primary sources secondary sources, but also relies unreliable and/ or inappropriate
Quality of sources used quality secondary sources. Draws quality secondary sources. secondary sources. secondary sources. limited and is limited to set on inappropriate sources. Hardly sources.
4 10
upon some current research or sources. any use of primary sources.
advanced scholarship.

Referencing Sources used are acknowledged Sources used are acknowledged Sources used are acknowledged Attempts to follow a systematic
Sources of information Some sources of information Little or no acknowledgement of
in the text and reference list and in the text and reference list and in the text and reference list. approach to the citation of
acknowledged and integration acknowledged but links between sources of information in text
B) Cognitive Skills

Referencing used effectively to support used to support discussion. Referencing follows a systematic sources, appropriate to the
between text and reference list is text and reference list are unclear. and/or reference list.
discussion. Referencing follows a Referencing follows a systematic approach, appropriate to the discipline. Most elements of
mainly effective with some Referencing does not follow a
5 10 systematic approach, appropriate approach, appropriate to the discipline. Entries in the reference individual references are present
inaccuracies or omissions. systematic approach. Elements of
to the discipline. All elements of discipline. All elements of list are accurate. and accurate. Attempts to follow systematic individual references are
individual references are present. individual references are present. approach, appropriate to the incomplete and/or absent.
discipline. Reference list contains
some errors.
Analysis Makes excellent use of relevant Makes very good use of a range Makes effective use of Makes consistent, albeit Makes satisfactory but limited use Here the attempts at analysis are This submission does not contain
analytic techniques and applies of analytic techniques relevant to established techniques of analysis conventional, use of established of established techniques of ineffective and/or uninformed by effective analysis and does not
Analysis these to new and/or abstract the discipline and applies these to relevant to the discipline. Shows techniques of analysis, relevant to analysis, relevant to the the discipline. yet engage with key disciplinary
information and situations. Shows new and/or abstract information some ability to compare with the discipline. discipline. techniques.
8 20
well-developed ability to compare and situations. Shows developing some insight alternative theories
alternative theories or analytic ability to compare alternative and/or analytic approaches.
approaches. theories and/or analytic
approaches.
Expression Fluent and accomplished writing, Fluent writing, appropriate to the Language generally fluent and Meaning is clear but language not Understandable and clear In this piece of work the meaning In this piece of work, the meaning
C) Practical Skills

appropriate to assignment. assignment. grammar, spelling, expressive. grammar, spelling, always used fluently. grammar, meaning, but language choices is often unclear with frequent is unclear throughout. Errors in
Clarity of expression (incl. grammar, spelling, and numeracy and numeracy are accurate. and numeracy accurate. spelling and/or numeracy is mainly include errors which detract from errors in grammar, spelling, and spelling, grammar, punctuation
accuracy, spelling, grammar, are highly accurate. accurate. the argument. Accuracy of or numeracy. and/or numeracy make
16 10
punctuation, and numeracy) spelling, punctuation, grammar interpretation challenging for an
and numeracy allows assessor.
understanding but needs to be
improved.