End-of-Module Assessment (2023-24) (Semester 1) Module Code/Title: MPR3629 Event Budgeting Required: (a) Calculate (to 2 decimal places) the following ratios for both years of Loki Industrial Limited: (i) gross profit margin; (ii) net profit margin; (iii) current ratio; (iv) quick ratio; (v) inventory turnover (in days) (based on average inventory); (vi) trade payables payment period (in days); and (vii) trade receivables collection period (in days). Note: Show the Formula in the calculation. (28 marks) (b) Based on the ratios calculated in part (a), comment on the relative performance of Loki Industrial Limited for 2023 in the following areas: (i) profitability; (ii) liquidity; and (iii) operational efficiency of inventory turnover. (16 marks) (c) Investors and lenders are users of the accounting information of Loki Industrial Limited. Briefly explain why both the mentioned parties need the accounting information of the company. (6 marks) Question 2 (Total 50 marks) You and your team have been assigned to prepare an event budget for a wedding ceremony and reception to be held in a prestigious hotel in Hong Kong. The objective of this project is to demonstrate your ability to create a comprehensive budget by calculating revenues and expenditures, and supporting them with appropriate references or documents. The project will be evaluated based on the accuracy of calculations, proper use of references, and adherence to the budget preparation process. Background for the Case: The prestigious hotel selected for the event is located in the heart of Hong Kong or Kowloon Peninsula. It offers luxurious event spaces, exceptional service, and a stunning backdrop for the wedding ceremony and reception. The wedding has a romantic and elegant theme, with a colour palette of soft pastels and gold accents. The overall ambiance aims to create a timeless and enchanting atmosphere for the guests. End-of-Module Assessment (2023-24) (Semester 1) Module Code/Title: MPR3629 Event Budgeting The wedding ceremony will take place in the late afternoon on a weekday in December 2023 , followed by a cocktail reception in the evening. The event duration is approximately six hours, including time for speeches, dinner (Chinese cuisine) and entertainment. A professional photography and videography team will capture every precious moment of the ceremony and reception. They will provide high-quality images and videos that the couple and their families can cherish as lasting memories. There will be 238 guests, including the bride and groom's 20 family members. Some of the budgeted revenues and expenditures for the events are as follows: Budgeted revenues: Contributions from wedding guests: ?? Contributions from the 20 family members: $200,000 Bride and groom's savings: ?? Budgeted expenditures: Banqueting: ?? Theming and decorations: $120,000 Entertainment: $85,000 Photography: $68,000 Event planning fee: $80,000 Other expenses and contingency fund: $30,000 Required: (a) Select your choice of hotel to hold the banqueting by search at the related web-site. Briefly explain your choice of hotel and show the selected menu of the dinner (Chinese cuisine) with price details and the calculations for the budgeted cost of banqueting. (20 marks) (b) Prepare the total budgeted expenditures. (7 marks) (c) Search at the related web-site for the average contribution from wedding guest for your choice of hotel and dinner menu and calculate the contributions from wedding guests. Then proceed to calculate the required savings from the bride and groom to pay for the budgeted expenditures. (11 marks) (d) The bride and groom consider that the budgeted cost for theming and decoration is a bit high. Suggest two ways to reduce the cost for theming and decoration. (12 marks)