Reference no: EM133247430

Business Economics and Finance in a Global Environment

Report Assignment in Accounting and Finance

You have received an email from the Chief Executive Officer of Clark Casc Logistics plc, where you are employed as manager of the refrigerated goods division, inviting you to the first in a series of budget- setting meetings and asking you to submit a brief report in advance.

You are only permitted to submit your report once. Trial runs are not permitted and no spare, draft or test dropboxes will be provided. It is your responsibility to submit your own work and to ensure that your report is finalised, complete and properly edited before, not after, you submit it.

This is an individual assignment. The sharing of files or copying of work between students is not permitted.

You are only allowed to submit one document, which must contain your full report, including your reference list. Do not attempt to submit additional documents.

Your submission must be either a Word document in .doc or .docx format or a .pdf document.
Appendices are not permitted.

Report Assignment in Accounting and Finance
You have received the following email from the Chief Executive Officer of Clark Casc Logistics plc, where you are employed as manager of the refrigerated goods division, inviting you to the first in a series of budget- setting meetings and asking you to submit a brief report in advance.

You presently have enough drivers and vehicles to meet demand up to 140 million tonne kilometres per year (£26,600,000 sales income per year at £0.19 per tonne kilometre). To fulfil orders above this level you will need 2 extra drivers and 1 extra heavy goods vehicle for every 1.4 million extra tonne kilometres per year (£266,000 sales income per year at £0.19 per tonne kilometre).

Proposed New Depot

If sales exceed 150 million tonne kilometres per year (£28,500,000 sales income per year at £0.19 per tonne kilometre), your department will need a new depot of the same size and with the same number of depot operatives as the existing depot and you will also need 3 additional administrative staff with salaries of £27,000 per year each. It will take 12 months to build a new depot and bring it into use and Clark Casc will have to pay the builders before it is complete.

You are responsible for deciding whether to make this extra investment in a new depot or not. You are not responsible for deciding on how to finance it. However, you have been told that further investments are required to make a return of at least 9% per annum and that this is to be used as the discount rate in any discounted cash flow calculations.

Additional Information

You are the manager of the refrigerated goods department and you have full access to any additional information required. If more information is required from a published, broadcast or webcast source, you must present that information with a proper reference in the normal referencing format required in the business school. If further information would be required from internal sources at Clark Casc, you must create that information yourself for use in drawing up your report and provide your own indication of internal sources.

You must not present a report which concludes that information is incomplete, or that further information is required or which recommends that further information is obtained. This would be a clear indication that you have not completed your report as required.

Required:

Write your report, addressed to the Managing Director of Clark Casc and containing the following sections, as directed in the Managing Director's email. Submit your report in the Turnitin dropbox.
1. Introduction
2. Budgeting Approach
3. Relevant Calculations, including any investment appraisal
4. Proposed Income and Expenditure Budget
5. Conclusion
6. Recommendations
7. References

Your report must be between 2,250 and 2,750 words in length excluding references.
Do not include an executive summary. Appendices are not permitted.

Attachment:- Business Economics.rar