Module title  Module code:

Fundamentals of Business Finance

MGBBT1FBF

Module Leaders:

Sheuly Ahmed

Jasim Ali Rathore

Assignment No.  Assignment type:

2

Case Study Report ( 2000 Words )

Assessment weighting:

50%

Submission date  Submission time:

Friday 24th May 2024

14:00

Target feedback

time and date:

3 weeks from the Submission Deadline 

LO 1

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

LO 2

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

LO 3

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

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 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.

Statement of Financial Position

All figures are in millions.

Task Description

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

22. Discuss motives of the following stakeholders for financial information of 7Seas Restaurants (300 Words):

1. Government (HMRC)
2. DFDS Seaways
3. Suppliers of raw materials
4. Potential Investors
5. Banks and Financial Institutions

23. 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).

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

1. Gross Profit Ratio
2. Operating Profit Ratio
3. Net Profit Ratio
4. Return on Investment
5. Return on Equity
6. Assets Turnover Ratio
7. Current Ratio
8. Quick Ratio
9. Equity Ratio
10. 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?

1. Briefly discuss important limitations of the ratios analysis  (300 Words)
2. 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. 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).