Module Title: Introductory Financial © UNIVERSITY OF LEEDS
Leeds University Business School Semester One 2020/2021
The deadline date for this assessment is 14:00:00 on Saturday 16th January 2021 (UK time).
An electronic copy of your completed answers must be submitted to the exam submission area within the module resource on the Blackboard MINERVA website no later than the date and time stated above.
Faxed, emailed or hard copies of your exam answers will not be accepted.
Late submissions will not be accepted.
Failure to meet this deadline will result in you being marked as absent from this assessment.
Questions during your exam
If you have a question about this examination paper during the exam, please direct all queries to the assessment team on LUBSassessment@leeds.ac.uk between the hours of 9am – 5pm (UK Time), Monday to Friday. All questions should go through this route. Do not contact your module leader directly.
Producing your assessment
We would prefer your examination answers to be typed up and submitted using Microsoft Word.
If in any answer, it is not possible to complete it electronically (eg calculations, graphs, formulae) these can be handwritten. Please take a photograph of your workings and save the image. The image should then be inserted into your examination paper at the correct point within your answer. It is your responsibility to ensure that any image that is inserted is readable. High quality images can impact the size of the file and causes issues with uploading.
Further information on how to insert images can be found on this page
Please ensure that you leave sufficient time to complete the online submission process, as upload times can vary. Accessing the submission link before the deadline does NOT constitute completion of submission. You MUST click the ‘CONFIRM’ button before the date and time stated above for your answers to be classed as submitted on time. It is important that any file submitted follows the conventions stated below:
The name of the file that you upload must be your student ID only.
During the submission process the system will ask you to enter the title of your submission. This should also be your student ID only.
The first page of your submission should always be the Online Examination Coversheet which is provide in the same Minerva area as this exam paper.
You should NOT include your name anywhere on your submission.
You are required to adhere to the word limit specified and state an accurate word count on the cover page of your assignment. Your declared word count must be accurate, and should not mislead. Making a fraudulent statement concerning the work submitted for assessment could be considered academic malpractice and investigated as such. If the amount of work submitted is higher than that specified by the word limit or that declared on your word count, this may be reflected in the mark awarded and noted through individual feedback given to you Question 1
You are helping Agned Ltd to prepare their accounts for the year ended 31 December 20X3. The following Trial Balance has been provided:
|Inventories at 1 January 20X3||545|
|Share capital: £1 shares||1,500|
|8% debenture loans repayable 20X8||1,200|
|Retained profits at 1 January 20X3||190|
|Printing and stationery||750|
|Provision for doubtful debts||40|
|Wages and salaries||890|
|Cash at bank||51|
|Rent and rates||320|
|Loan interest paid||48|
|Property at cost||3,000|
|Property accumulated depreciation at 1 January 20X3||90|
|Fixtures and fittings at cost||1,500|
|Fixtures and fittings accumulated depreciation at 1 January 20X3||600|
|Plant and machinery at cost||2,800|
|Plant and machinery accumulated depreciation at 1 January 20X3||1,264|
The following additional information is now available:
viii. Corporation tax due to the tax authorities of £615,000 is to be accounted for.
300 – 400 words).
(Total 41 marks)
The financial statements of Mog plc for 20X4 and 20X3 are as follows:
Income Statements for Mog plc for the periods ended 31 December 20X4 and 20X3
Cost of sales
Finance costs (878) (1,008)
|Profit before tax||2,160||3,242|
Profit after tax
Dividends proposed and paid
£000 £000 Depreciation 2,670 4,495
Directors remuneration 450 380
Auditors fees 150 130
Interest payable on bank loan 878 1,008
Statements of Financial Position for Mog plc as at 31 December 20X4 and 20X3
ASSETS £000 £000
Non-current assets (net book value)
Land and buildings 11,600 11,600
Plant and machinery 7,820 10,490
Inventory 4,320 7,800
Trade receivables 12,100 7,100
Bank 5,480 4,402
TOTAL ASSETS 41,320 41,392
EQUITY AND LIABILITIES
Equity share capital (£0.50 ordinary shares) 3,000 3,000
Share premium 900 900
Retained earnings 15,720 14,292
TOTAL EQUITY AND LIABILITIES
(Total 36 marks)
The Cash Flow Statement for Manadi Plc for the year ended 31 December 20X8 is as follows:
|Cash flows from operating activities|
|Cash generated from operations (see note below)||1,036|
|Finance costs paid||(80)|
Net cash from operating activities
|Cash flows from investing activities|
|Purchase of property, plant and equipment||(524)|
|Proceeds from sales of property, plant and equipment||80|
Net cash used in investing activities (404)
|Cash flows from financing activities|
|Issue of long-term interest-bearing borrowings||400|
|Net increase in cash and cash equivalents||376|
|Cash and cash equivalents at start of period||160|
Net cash used in financing activities 120
Cash and cash equivalents at end of period
Note: Reconciliation of profit before tax to cash generated from operations
|Profit before tax||640|
|Loss on sale of property, plant and equipment||24|
|Decrease in inventories (£496m – £480m)||16|
|Increase in trade and other receivables (£584m – £320m)||(264)|
|Increase in payables (£824m – £624m)||200|
Cash generated from operations 1,036 Required:
20X8 and discuss the company’s cash management over the year. (Word count guidance: 400 – 500 words).
(Total 23 marks)
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more