Note: The required answer is only to compare both years' statements and find what is improving, what went wrong and what can be done

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**** (calculation)Comparing the two given investment opportunities in terms of (Payback Period, Net Present Value and Internal Rate of Return)

The Scenario

Helena beauty products Limited is an organization specialised in manufacturing beauty products for both male and female. The organization was established in 2015, in the Sultanate of Oman. The rapid increase in demand resulted in expansion of their beauty product range.

The organization evaluates its financial position based on ratio analysis, comparing its performance from the previous year. Further, they evaluate their investment decision based on three investment appraisal techniques- Payback period, Net Present Value, and Internal Rate of Return to achieve long run financial Sustainability.

Below is the financial information of Helena Beauty Products Limited.

Extract of Statement of Financial Position for the years 2019 and 2020

ASSETS	2020	2019
	OMR 000	OMR 000
Non Current Assets	880	880
Current Assets
Inventories	528	440
Trade Receivable	286	220
Cash	22	33
TOTAL ASSETS	1716	1573
EQUITY AND LIABILITIES
Equity
Share Capital	110	110
Retained Earnings	605	550
TOTAL EQUITY	715	660
Non Current liabilities
Long term debt	330	330
Current Liabilities
Trade Payable	330	253
Other Payables	231	220
Bank Overdraft	110	110
TOTAL LIABILITIES	1001	913
TOTAL EQUITY AND LIABILITIES	1716	1573

Extract of Income statement for the years 2019 and 2020

	2020	2019
	OMR 000	OMR 000
Sales	4,730	4,200
Cost of sales	3,500	3,000
Gross Profit	1,230	1,200
Expenses	840	750
Operating Profit	390	450

Investment in new range of products

Helena Beauty Products Limited, is considering a new product line to introduce selling organic beauty supplies. It is anticipated that the new product line will involve cash investment of RO 150,000 at year 0. After tax cash inflows of RO 35,000 are expected in year 1, RO 37,000 in year 2, RO 45,000 in year 3 and RO 52,000 each year thereafter till year 5. Though the product line will be viable after 5 years, the company prefers to be conservative and end all the calculations at that time as the maximum payback period is 5 years. The companys required rate of return is 13%.

Discounting Factor 13%

1	2	3	4	5
0.885	0.783	0.693	0.613	0.543

The organization is planning to recruit a management accountant, to support financial decision making and ensure proper financial monitoring and controls systems are in place to maximise performance and long-term sustainable growth.

Required.

Assuming you are the recruited management accountant, you are required to give your findings in the form of a written report making justified recommendation on how the role of Management Accountants and accounting control systems can be improved to support financial decision making in order to achieve long term financial sustainability.

Learning Outcomes and Assessment Criteria
Learning Outcome	Pass	Merit	Distinction
LO3: Evaluate the role of management accountants and accounting control systems	P3 Evaluate the role of management accountants and their value as part of an integrated system. P4 Evaluate the use of accounting control systems and their value as part of an integrated business system.	M3 Critically evaluate the role of management accountants and accounting control systems to support a culture of ethical financial management.	D3 Make justified recommendations on how the role of management accountants and accounting control systems can be improved to support financial decision-making in order to achieve long term financial sustainability
LO4 Evaluate ways in which financial decision-making supports sustainable performance	P5 Evaluate the ways in which financial decision-making is important for supporting long term financial sustainability.	M4 Critically evaluate how different ways of financial decision-making support long term financial sustainability.	D3 Make justified recommendations on how the role of management accountants and accounting control systems can be improved to support financial decision-making in order to achieve long term financial sustainability