Investors Report

Financial Management for Decision Making ACC11407

Assignment – Part 1

This part of the assessment is due on: 8 March 2019 (week 8)

You’re working in the Finance department of Wayne Enterprises. Your company has experienced a high volume of sales and therefore it has more liquid assets (cash) then initially anticipated. Your line manager, in an attempt to diversify the portfolio, is thinking of investing £0.5 Million in shares of Tesco plc.

Your line manager has asked for your opinion on the matter and has highlighted two main concerns about the potential investment; which are: the riskiness of the investment and whether the company is profitable. The financial statements of the company in their annual reports. You are required to use the accounting figures from the before exceptional items in your analysis.

Annual Report of Tesco attached:

https://www.tescoplc.com/media/474793/tesco_ar_2018.pdf

REQUIRED:

(a) Calculate appropriate ratios for the years 2017 and 2018. (20%) (b) Comment on the ratios calculated indicating whether the 2018 figures

are an improvement on 2017. (20%) (c) Identify any other information, you feel would be useful from the

annual report, to give a better overall picture of how Tesco plc is performing. (30%)

(d) Advise your line manager, with reasons, whether she should invest. (20%) Note: the final 10% of the grade will be allocated for presentation and

referencing. (10%)