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COURSEWORK 2 ASSESSMENT
This assessment replaces the in-class assessment and the end of module exam and is
worth 60% of your overall module grade (learning outcomes assessed 2 – 6; the SMU
general marking criteria for written work at level 4 will be applied see page 19 in
module guide).
Issue date: End of April 2021
Submission date deadline: 12 noon on the 13thMay 2021
An electronic copy of your work MUST also be submitted to Turnitin via the link in
the module folder by this date.
(Calculations can be done by hand, then take clear photos, add to your word
document as appropriate, save as a PDF file then submit to Turnitin.)
INSTRUCTIONS:
PARTS A & B ARE COMPULSORY:
PART C YOU SHOULD ANSWER ANY TWO OF THE THREE QUESTIONS:
Part A is worth 50 marks – ANSWER ALL THE QUESTIONS
Part B is worth 33 marks – ANSWER ALL THE QUESTIONS
Part C is worth 66 marks (each question is worth 33 marks)
(Words included beyond the set word limits (+10%) WILL NOT be assessed).
Include a brief reference list for sources used
PLEASE NOTE THAT MODULE TUTORS WILL NOT REVIEW DRAFTS
OR ANSWER STUDENT QUERIES ABOUT THIS COURSEWORK – YOU
WILL NEED TO REFER TO THE ‘EXAM REPLACEMENT COURSEWORK
BRIEFING DOCUMENT’ WHICH IS AVAILABLE IN SECTION 3 OF THE
MODULE FOLDER ON MOODLE FOR GUIDANCE.
2
PART A
YOU SHOULD ANSWER ALL THE QUESTIONS IN PART A
Sara is planning to open a sewing and dress making accessories shop. The table below shows the
estimated cash inflows and outflows for the first three months trading for her proposed business
called Teddington Stitch. She will invest £25,000 capital into this venture (having obtained a bank
loan of £10,000 combined with her savings of £15,000) and plans to open at the beginning of
October 2021.
Cash sales £12,000 for October then increasing by £2000 per month.
Credit sales £8,000 per month (customers are given 2 months trade credit)
Stock
purchases £4,500 for October then increasing by £1500 per month,
(suppliers will give 1 month’s trade credit).
General
expenses £12,000 per month
Equipment
Drawings
£10,000
£2,000
payable on 30th November
per month
Delivery van

£15,000 payable on 31st December
Question 1.
(a) Prepare a monthly cash flow forecast for Teddington Stitch for the three months, 1st
October to 31
st December 2021. Briefly describe the expected cumulative cash
position at 31st December 2021 and suggest two changes the business could make to
its trade credit policies that could improve the net cash flow for this period.
(20 marks)

Question 2. (MAXIMUM WORD COUNT 600 words)

(b) Compare and contrast two types of medium-term, asset-based finance that Sara could
consider for funding the cost of the delivery van and provide a clear recommendation,
including justification for your choice, as to which of these asset-based sources of
finance would be the most appropriate for Sara’s business.
(10 marks)
(c) Explain the purpose of cash flow forecasts/cash budgets. How can Sara use cash
budget information to support financial decision making? (10 marks)
(d) Briefly describe the main internal and external sources of finance for limited and
unlimited liability business entities. (10 marks)
(Part A total 50 marks

Type of service: Academic Paper writing
Type of assignment: Coursework
Subject: Finance
Pages/words: 4/2000
Number of Sources: 9
Academic level: Undergraduate
Paper Format: Harvard
Line spacing: Single
Language style: UK English