Title: “The Importance of Financial Accounting in Decision Making and Performance Evaluation: A Report for Management” Title: “Budgeting and Budgetary Control for Topgun Co. Ltd: A Case Study for June 2024”

Part 1:
Submission Format: You will submit a report to demonstrate how financial accounting should be done and the functions of it.
Vocational scenario:
Organisation
Multiple organizations are presented in the assignment brief.
Role
You are the newly appointed Chief Financial Officer of a company and your team is responsible for the preparation of financial statements. 
Assignment activity and guidance:
You have been invited to make a report to a management board. In your report, your aim is to explain to the board of the value of financial & management accounting and the accounting techniques in informing decisions, maximising performance and helping to ensure long-term sustainable growth.
Your report will cover:
1. 1 Examining the purpose and scope of accounting in complex operating environments.
1. 2 Critically evaluating the role of accounting in informing decision making, as well as meeting stakeholder and societal needs & expectations.
1. 3 Assessing the accounting function within the organisation in the context of regulatory and ethical constraints.
Part 2:
Submission Format: You are the Accounting Manager of Happyland Company, a trading company, will prepare a report enclosing the 2023 annual financial statements.
Transferable skills and competencies developed:
– Managing financial data
Written communication using a range of media
Effective communication of relevant information across the organisation and to appropriate stakeholders
Application of accounting principles, conventions and standards and is able to deliver high-quality, accurate data and information in a timely fashion.
Assignment activity and guidance:
The following balances are taken from books of Happyland Co. Ltd. at the end of the first year trading on 31 December 2023.
Debit Credit
$ $
Sales 85,000
Purchases 43000
Wages and salaries 5200
Repairs and maintenance 2300
Heating and lighting 500
General expenses 1000
Insurance 1200
Cash at bank 7200
Cash in hand 8900
Trade receivables 900
Trade payables 5600
Premises 13000
Fixtures and fittings 9800
Motor vehicles 10000
Capital at 1 January 2020 20400
Drawings   8000
111000 111000
** There is $16,000 inventory by the end of the year.
Prepare the financial statements of Happyland Co. Ltd. for the first trading year, i.e. 
1) a profit and loss statement (income statement) and 
2) balance sheet (statement of financial position, based on the information from above 
trial balance.
Recommended Resources
Please note that the resources listed are examples for you to use as a starting point in your research – the list is not definitive
Textbooks & Accounting Standards
Atrill, P. and McLaney, E. (2021) Accounting and Finance for Non-Specialists.
12th Ed. Harlow: Pearson
International Accounting Standards, IASB
Part 3:
Submission Format: You, as the Accounting Manager of the ABC Company, need to provide analysis of company performances based on financial statements. 
Assignment activity and guidance:
Calculate and present the following financial ratios using the financial reports of ABC and XYZ Co. Ltd. (refer to page 11) for the years 2023. Round all answers to 2 decimal places.
Gross Profit Margin
Return on Equity
Net Profit Margin
Debt-to-Equity
Quick Ratio
Compare the performance of ABC and XYZ Co. Ltd. using the financial ratios.
Discuss the limitations of using financial ratios as performance measures.
Recommended Resources
Please note that the resources listed are examples for you to use as a starting point in your research – the list is not definitive.
Textbooks & Accounting Standards
Atrill, P. and McLaney, E. (2021) Accounting and Finance for Non-Specialists.
12th Ed. Harlow: Pearson
International Accounting Standards, IASB
Part 4:
Submission Format: As the Management Accounting Manager of the Topgun Company, you are required to submit a cash budget for the first six months (Jan – Jun) 2024.
Assignment activity and guidance:
The following sales figures are for the months of November 2023 to June 2024. The figures from January 2024 onward are estimated:
$
Actual sales:
November 2023 24000
December 2023 36000
Forecast sales:
January 2024 42000
February 2024 54000
March 2024 60000
April 2024 60000
May 2024 57600
June 2024 57600
50% of the sales are normally paid for in the month in which they occur and the customers are rewarded with a 10% cash discount. The remaining sales are paid for net in the month following the sale.
Goods are sold at a mark-up of 20% on the goods purchased one month before sale. Half of the purchases are paid for in the month of purchase and a 5% prompt settlement discount is received. 
The remainder is paid in full in the following month.Rent of $8,000 per month are paid in the month in which they are earned. 
It is expected that the rent will be increased by 10% from 1 April 2024.The company has to repay a bank loan of $10,000 in March 2024.
The half-yearly interest on $200000, 10% debentures of $1 each is due to be paid on 5 February 2024.
The ordinary dividend of $25,000 for the year 2023 will be paid in March 2024.The bank balance at 31 December 2023 is $52,000.
Questions:
Prepare a cash budget for the four months ending 30 April 2024. Give your answers to the nearest dollar ($).
Discuss the benefits and limitations of budgets and budgetary planning, and control for Topgun Co. Ltd. Evaluate the extent to which using budgets can help to identify problems and corrective actions.
Justify budgetary control solutions and their impact on organisational decision making to ensure efficient and effective deployment of resources.