Students are required to:

Select a company $($real or fictitious$)$ that is publicly traded or has financial data available for analysis, students will act as financial analysts for a fictitious company or a real small business seeking to make informed investment decisions. The project will involve conducting a comprehensive financial analysis and providing investment recommendations based on the findings.

$1.$Provide a detailed explanation of financial management

$2.$ Gather relevant financial data for the selected company. Use financial management principles to monitor the start$-$up's financial performance and ensure that the marketing initiatives are financially sustainable. This may involve developing a cash budget.

$3.$Conduct a financial analysis: Students will perform a thorough

financial analysis of the company. This analysis should include:

Ratio Analysis: Calculate and interpret key financial ratios such as

profitability ratios, liquidity ratios, leverage ratios, and efficiency

ratios.

$4.$Investment Recommendation: Based on the financial analysis

provide a clear investment recommendation. Should the company

be considered as a potential investment? Should it be avoided?

Students should justify their recommendation.

Adjustments and additional information

Stocktaking on $28$ February $2023$ revealed the following inventories:

Trading inventory R$220000$

Stationery R$4000$

The telephone account for February $2023,$ R$6000,$ was due to be paid on $01$ March $2023.$

A debtor who was declared insolvent paid R$900$ which represented $30\%$ of her debt. The balance of

her account must now be written off.

The provision for bad debts must be decreased to R$14000.$

Rent has been received up to $31$ March $2023.$ Note: The rental was increased by R$2000$ per month

with effect from $01$ November $2022.$

The insurance total includes an annual premium of R$15000$ that was paid for the period $01$ June $2022$

to $31$ May $2023.$

Provide for outstanding interest on the mortgage loan for February $2023.$

Provide for the outstanding interest on fixed deposit. The investment in fixed deposit was made on

$01$ September $2022.$

A payment for the annual service of a motor vehicle was not recorded, R$5000.$

Provide for depreciation as follows:

$10\mathrm{.}1$ On equipment at $10\%$ p$.$a$.$ on cost$.$

$10\mathrm{.}2$ On vehicles at $20\%$ p$.$a$.$ using the diminishing balance method. Note: A vehicle with a cost price of

R$360000$ was purchased on $01$ December $2022.$ The purchase has been recorded.

INFORMATION

$\backslash$table$[[$FIESTA TRADERS$],[$PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $28$ FEBRUARY $2023],[,$Debit $($ R $),$Credit $($R$)],[$Balance Sheet accounts section$],[$Capial$,,2520000],[$Drawings$,160000,],[$Land and buildings,$1800000,],[$Vetricles at cost$,1360000,],[$Equiptemilat cost$,1000000,],[$Accurmulaled depreciation on vehicles,,$760000],[$Actumulaled depreciation on equip remi,,$320000],[$Fixed deposit Rio Bank $(10\%$ p$.$a$.),300000,],[$Trading itwentory,$230000,],[$Deblors cintiol,$260000,],[$Pruvision for bad debts,,$16000],[$Bark$,134000,],[$Cash float,$12000,],[$Creditors cantrol,,$220000],[$Marigage loant Rio Bank $(12\%$ p$.$a$.),,640000],[,,],[$Nominal atcounts section$],[$Sales$,,3000000],[$Cost of sales,$960000,],[$Sales returns,$20000,],[$Salaties and wages,$838000,],[$Bad debts,$24000,],[$Sistionery$,40000,],[$Rales and tazes,$116000,],[$Molor expenses,$180000,],[$Repsirs to building,$34000,],[$Telephone$,76000,],[$Electricity and waler,$92000,],[$Bark charges,$16000,],[$Insurance$,40000,],[$Inlerest on morigage losin,$66000,],[$inlerest on fixed deposit,,$12000],[$Rent incotre,,$270000],[,7758000,7758000]]$