UNIT NO 8: ACCOUNTING SYSTEMS. Attaching LO1 for better understanding, I am looking the answers for LO2 and LO3 and LO4 as mentioned below! LO1 P1 M1 P2 M2 is done.

NEED ANSWERS FOR:

LO2 (P3, P4)

LO3 (P5, M3, D2)

LO4 (P6, P7, M4, D3)

OVERVIEW ABOUT GREEN VALLEY: (THE SELECTED ORGANIZATION FOR THIS ANALYSIS REPORT)

http://www.greenvalley.pk/index.php?option=com_content&view=article&id=3:company-overview&catid=1:about-us&Itemid=13

SCENARIO:

Thanks.

ASSIGNMENT TITLE Business Resources Analysis LEARNING OUTCOME AND ASSESSMENT CRITERIA P1 the PASS MERIT DISTINCTION LO1 Know how human resources are managed describe recruitment documentation used in a selected M1/P1 explain how the management of organization human, physical and technological P2 describe the main employability, resources can improve the performance L02/P3 personal and communication skills Of a selected organization. D1 Evaluate how managing resources required when applying for a specific job and controlling budget costs can role M2/P2 Assess the importance of improve the performance of a business employability, and personal skills in the recruitment and retention of staff in a selected organization LO2 Know the purpose of managing physical and technological P3 Describe the main physical and technological resources required in the operation of a selected organization. P4 Describe sources of internal and external finance for a selected business. resources LO3 Know how to access sources of finance P5 Interpret the contents of a trading and profit and loss account and M3 Interpret the contents of balance sheet for a selected company. a trading and profit and loss account and balance sheet for a selected company explaining how accounting ratios can be used to monitor the financial performance of the organization LO 3/P5 D2 Evaluate the adequacy of accounting ratios as a means of monitoring the state of the business in a selected organization, using examples LO4 Be able to interpret financial statements. P6 Illustrate the use of budgets as a means of D3/P6 Evaluate the problems they have exercising financial control of a selected M4/P6 Analyze the reasons why identified from unmonitored costs and company costs need to be controlled to budgets. P7 illustrate the financial state of a given budget. business. SCENARIO 2 Following are the financial statements of K&G, including statement of P&L and Balance Sheet. You are required perform task 2 for following financial statements. K&G Statement of Profit and Loss At the end of year 31 December, 2017 2017 '000 2016 '000 Revenue Cost of Sales Gross Profit 9,000 (6,125) 2,875 5,550 (3,885) 1,665 Overheads Administration expenses Distribution costs Operating profit Finance costs Profit before Tax Income tax expense Profit for the period (1,006) 1996) 873 (65) 808 (202) 606 (620) (534) 511 (51) 460 (120) 340 K&G Balance Sheet as at 31 December, 2017 2017 '000 2016 'Ooo ASSETS Non-current Assets Property. Plant and Equipment Development costs 570 30 600 600 15 615 Current Assets Inventories Trade and other receivables Cash and cash equivalents 1,575 683 O 2.258 1,470 465 63 1.998 Total Assets 2,858 2.613 EQUITY AND LIABILITIES Equity Share Capital Retained Earnings Total Equity 825 768 1,593 825 615 1,440 Non-current Liabilities Long-term borrowings 618 606 Current Liabilities Trade and other payables Bank overdraft 545 102 647 S67 o 567 1,205 1,173 Total Liabilities Total Equity and Liabilities 2,858 2,613 TASK 2 {SCENARIO 2}-(LO3/4:P4,P5,P6,P7) (M3, M4 AND D3,D1, D2) P4) Describe sources of internal and external finance for K&G and also explain possible cons and pros to each source of internal and external finance. P5/P7) Present and Interpret the contents of a trading and profit and loss account and balance sheet for K&G (Scenario 2), Also explain how accounting ratios can be used to monitor the financial performance of the business, monitor and illustrate the state of the business given business, by using the same example (K&G).You can start by providing a brief written interpretation of the key elements of the trading and profit and loss account and the balance sheet, explaining the purpose of each element. Use of accounting ratios to show the financial state of K&G is must. P6) Using break-even charts ,Explain how budgets help to control financial issues, and if there are not budgets than what problems can be arises in any business. Explain reasons of a poorly managed budget and identify the problems and suggest remedies. TO ACHIEVE D3, Using evidence provided for M4, evaluate the problems you have identified from poorly controlled budgets by looking at the potential consequences for (K&G) arising from the budget variances. TO ACHIEVE M3, use various financial ratios and how the formulae of the ratios and their workings. TO ACHIEVE M4, Analyze the reasons why costs need to be controlled to budget. TO ACHIEVE D2, provide judgements about the sufficiency of ratios as a measure of how well K&G is performing. TO ACHIEVE D1, Assess the relative merits of the methods of the managing resources and to make judgements on the effectiveness of these methods in improving the performance of the selected business. Evaluate how managing resources and controlling budget costs can improve the performance of a business, particular given in scenario 2.for this criteria explain what can include in budget costs