Prepare a monthly Cash Budget in tabular form for the months February, March and April, showing the bank balance at each month’s end.

2) Write a 750 word brief essay integrating aspects of the module with at least three external sources to support your position about whether you agree or disagree with the following statement: ‘Budgeting is a key component in management short and long term planning.’ Finance Assignment homework help

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The following data is available from the various functional budgets prepared at Congo Limited.

Part A

An important part of the regulatory controls over banks is the capital adequacy requirement. The forces banks to maintain sufficient risk-adjusted capital to support the credit risk they assume in their lending portfolios.

Below is breakdown of the assets held by Geelong Bank. Finance Assignment Help

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Required:

1. Calculate Geelong Bank’s capital adequacy requirement
2. According to Basel II, how much of their capital adequacy is required to be held as tier 1 capital?
3. Now estimate the tier 1 capital requirement, assuming Basel III is enforced.
4. Under the proposed Basel III, there are two new liquidity standards. Define and discuss the rationale for these new standards.

Part B

A considerable body of academic research supports the argument that the slope of the yield curve (the spread between short term and long term interest rates) is a reliable predictor of future economic activity. Investors and policy makers have extensively used yield curves as a simple forecasting tool in real time to better understand business cycles.

Required:

1. Construct the yield curves for both Australia and US as at month end, September 2011, 2012, 2013 and 2014. Discuss and compare the shapes of the yield curves for each country and year. (For this task, students must collect yields for short-term and long-term Government securities with a minimum five maturities to plot the yield curves).
2. Construct and critically examine how the change in the slope of the yield curve provides a possible explanation for changes in economic activity of an economy. In your examination, compare the slope of the yield curves to the economic growth of each country. In your view does the slope of the yield curve reflect the business cycles at that time? (For this task, students are required to calculate the slope of the yield curve as at month end September 2011 to 2014 along with economic growth at the same periods). Finance Assignment Help

FT Lexicon defines crowdfunding as a new and emerging way of funding new ideas or projects by borrowing funding from large numbers of people often accessed through a website. Although crowd funding started as a way of raising capital for start-ups, even larger and already established firms can use this financing channel to raise money. In your region, you can access more information about crowdfunding through Crowdonomic, a website for Asian crowdfunding sources, which launched in Singapore in 2013 (the website address is https://www.crowdo.com).Your uncle, an experienced engineer, is considering a proper development of his business idea – to manufacture blades for fans produced by larger firms. Your uncle has a clear Finance Assignment Help

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technological advantage over competitors as he came up with a revolutionary galvanizing process for blades which offers huge cost savings. He has also an extensive managerial/operational experience – in addition to it he is already running a very small operation in his garage under the name Superblades. What he lacks is the necessary funding to finance the new venture – and he hopes that you, as a UoB finance student, will be able to help him in his project which you should treat as a start-up firm.
For a start, he asked you to write him a memorandum about start-up financing – how a small company is usually financed. He is particularly interested whether he will be able to borrow money from the bank from the early days of his company’s existence.
Only yesterday he received a trial contract from the UK firm to deliver his blades. The contract is in GBP for £50,000 payable in one month’s time, there is no credit risk arising from this UK client yet there is still the exchange rate risk and that is why your uncle wants you to hedge against currency movements. You know that he will have to pay its suppliers and employees in Singapore Dollars (SGD) and that he prefers to use forward exchange
contract.
FM Coursework, Kaplan Singapore, 2015-16 Page 3
Please prepare a memorandum to answer your uncle’s questions. In particular, in very
clearly separated sections, please:
1. Identify the sources of finance in different growth stages of the company, – 40 marks
2. Describe banks’ preferences while lending to companies in general, – 10 marks
3. Using 5 factors of your choice assess the role which crowdfunding might play in his
venture and in what stage it might become a realistic financing option – 20 marks
4. Define a forward exchange contract and explain why would you like to use this
protection and – 25 marks
5. Clearly show your calculations and flow of hedging transaction – 5 marks Finance Assignment Help

The emerging market multinationals (EMMs) are those companies originating from an emerging market which invests in developed or other emerging markets. In the literature they are also called emerging market multinational companies (EMNCs). Examples of EMMs include TATA (India), Huawei (China), Turkcell (Turkey) and Vale (Brazil). Recently they have been very active in foreign equity listing. New York and London are the dominant financial centres while Hong Kong serves Chinese companies.

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In a recent move the Singapore Exchange has also opened its doors to Chinese companies. In this context, you are required to discuss the advantages and disadvantages of listings by EMMs. You may provide one EMM as an example to illustrate your case in an effective manner. However, you need to take into consideration that this an academic essay so theoretical and empirical discussions are indispensable. Your assignment must be properly referenced. Further information on referencing (ie the Harvard system) is available in the Studying at a Distance textbook by Talbot and on the Virtual Learning Environment in the Study Skills area.

Analyse the pros and cons of listing in the foreign stock exchange(s) for emerging-market multinationals (EMMs). Finance Assignment Help

Question 1

Bonza Handtools Ltd. manufactures a popular power drill suitable for the home renovator. Financial and other data for this product for the last twelve months are as follows:

Sales 20000 units

Selling price $130 per unit

Variable manufacturing cost $50 per unit

Fixed manufacturing costs $400000

Variable selling and administrative costs $30 per unit

Fixed selling and administrative costs $300000.

The directors of Bonza Ltd. want to try to increase the profitability of this product and invited senior staff to suggest how this might be done. Three suggestions have been received.

· The accountant, Jan Rossi, believes that a price increase of $10 per unit is the best way to boost profits. She would spend an additional $125000 on national advertising and contends, that if this is done, sales volume would not drop appreciably from last year.

· The production manager, Tom Tune, thinks that an improved quality product could increase sales volume by 25% if accompanied by an advertising campaign costing $50000 aimed at tradespeople as well as home renovators. The improved quality would add $5 per unit to the variable cost. Mr Tune believes that the price should not be increased. Finance Assignment Help

· The sales manager, Mary Watson, wants to undertake a promotion campaign where a $10 rebate is offered on all drills sold during the three months beginning 1 April. Normally 6000 units are sold during that period and Ms Watson believes that this could be boosted to 10000 units if an advertising campaign costing $40000 were launched late in March.

You have been asked by the Bonza board to comment on each of these three proposals. Draft a report in response to this request. You are not asked to make an outright choice, but rather to analyse the potential strengths and weaknesses. The sales volumes forecast by each staff member should be treated as estimates only and your report should examine the effects of variations in actual sales from these forecasts.

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Give figures to support your comments and mention qualitative factors that may also be involved.

Question 2

The Tassie Company estimates that next year it will manufacture and sell 150000 units of its product. On the basis of that level of activity, it has budgeted for the following costs and prices per unit:

Direct Material Cost $2.50

Direct Labour Cost 3.00

Variable Factory Overhead 1.50

Fixed Factory Overhead 2.00

Manufacturing Cost 9.00

Variable Selling and Administrative Cost 2.00

Fixed Selling and Administrative Cost 1.50

Total Cost 12.50

20% Mark-up 2.50

Selling Price $15.00

The Company has an opportunity to bid for the supply of an additional 40000 units of its product to a government department. No sales commission (variable selling and admin. cost) is involved and no additional fixed costs will be incurred.

Give a reasoned opinion on the level of the bid that should be made in each of the following two circumstances:

(i) The capacity of the Tassie Company’s factory is 200000 units per year.

(ii) The capacity of the factory is only 180000 units per year.

Question 3

Critically discuss the following statements: Word limit for Question 3 – 750 words

•’a budget is a forecast of what is expected to happen in a business during the next year’
•’budgets are okay but they stifle all initiative. No manager would work for a business that applies control through budgets.’
• ‘any sensible person would start with the sales budget and build up the other budgets from there.’
•’a budget trying to be realistic will not motivate best performance.’
• ‘only adverse variances are worth investigating, because favourable variances, by definition, must be good.’ Finance Assignment Help

Question 4

ABC Ltd makes trailers. It receives a special order to produce 350 trailers for a local retail outlet. The order will take 2,100 kg of material that costs $16.10 per kg and will require 1,400 direct labour hours and 525 machine hours. The following are the expected/budgeted annual costs for ABC Ltd:

Direct labour $327,600

Direct labour hours 25,795

Direct materials $193,200

Indirect costs $98,400

Machine hours 9,840

Required:

Calculate the overhead allocation rate: note that the process is labour-intensive
Calculate the total costs of the special order
Calculate the cost of the special order if ABC Ltd uses machine time as the basis for allocating overheads
Calculate the minimum price per trailer that ABC Ltd could accept.
Explain how segmented overhead cost pools and activity based costing can assist accurate costing for pricing purpose (200 words)

Question 5

Write around 500 words explaining how segmenting the overheads can help in allocating overhead costs to individual jobs or services. You must support your discussion by real world examples and acknowledge the source of your information (referencing). Finance Assignment Help