Interpret and critically appraise the main financial statements: the profit and loss account the balance sheet and a cash flow statement

As a senior analyst of a large UK-based asset management firm you have been asked to prepare a summary presentation of Greggs plc as an investment prospect.Carry out your analysis using the company’s most recent Annual Reports as well as other publicly available information where appropriate.

 

Learning Outcomes
By the end of the course students should be able to:

⦁ Explain the role of finance and accounting personnel in providing information to managers.

⦁ Interpret and critically appraise the main financial statements: the profit and loss account the balance sheet and a cash flow statement

⦁ Critically evaluate the impact of cash-flow and its management.

⦁ Analyse the principles and methods of costing and how cost information can be used to support decision making.

⦁ Demonstrate comprehensive knowledge and understanding of the main sources of finance for an organisation.

⦁ Critically appraise the role of shareholders
Module Coursework Assessment

The coursework is designed to test your ability to critically analyse interpret and evaluate the performance and prospects of companies using corporate reports alongside other publicly available information. In doing so it is designed develop your understanding of the usefulness of corporate reports as an effective means of financial communication.

Question 1: Accounting

As a senior analyst of a large UK-based asset management firm you have been asked to prepare a summary presentation of Greggs plc as an investment prospect. You are expected to carry out your analysis using the company’s most recent Annual Reports as well as other publicly available information where appropriate.

Your summary should be presented as a poster and should include:

⦁ A brief review of the company’s commercial operations and strategic positioning (using SWOT or any other suitable tool).
⦁ Calculation and interpretation of appropriate ratios and comments on the company’s ability to:
⦁ generate profits and return for investors; (ii) meet its short and long-term obligations; and
(iii) make efficient use of its resources.
⦁ A reasoned conclusion.

In preparing your poster use the latest corporate Annual Report & Accounts released by Greggs plc alongside other sources that may offer new or complementary information (e.g. Reuters Bloomberg The Financial Times etc.).

Relevant extracts from the Annual Report can be incorporated into your poster such as Chairman’s Statement Strategic Report financial statements and notes where appropriate.

Students will be expected to show knowledge of the present and likely future environment within which the company operates.

The assignment will be assessed as follows:

20%: Understanding of the company’s commercial operations and strategic positioning. 50% Correct calculation and interpretation of appropriate ratios and company performance. 20% Overall presentation structure quality of writing research and referencing.

10% Reasoned conclusion.

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