MANAGING FINANCIAL RESOURCES

Managing Financial Resources & Decisions



TABLE OF CONTENT

INTRODUCTION1

TASK 1) QATAR NATIONAL W.L.L1

1.1. Identify the sources of the finance available to a company in general (P1.1, M1)1

Internal Finance1

External Finance2

1.2. Identify and analyze how the assets of Qatar National W.L.L have been financed for the year of 2007 and 2008. (P1.2, 1.3, M2, D1)3

TASK 2) LAKE OF EGYPT MARINA, INC3

2.1. Explain the Working Capital Management3

2.2. Identify the Net Working capital of the above company for the year of 2008 and 2009 (P2.3, M1, D2)4

2.3. Analyse the working capital in terms of liquidity, profitability and risk taking ability (P2.3, M2, D1)5

TASK 3) INVESTMENT APPRAISAL6

3.1. Explain the importance of investment appraisal6

3.2. Explain the available techniques to appraise an investment7

3.3. Evaluate each technique from the investor's point of view8

3.4. Identify the Net Present Value of the above project8

TASK 4) RATIOS LAKE OF EGYPT MARINA, INC9

4.1. Calculate the following ratios for Lake Of Egypt Marina, Inc. as of the above years9

4.2.Analyze the company performance over the period based on the findings above (P 4.2, M3, D1)10

ANSWER 5) BALANCE SHEET AND INCOME STATEMENT 201111

5.1 Balance sheet as at 31st December 201111

5.2 Income Statement for the year ended 201111

CONCLUSION15

REFERENCES16

Table of figures

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Managing Financial Resources & Decisions

Introduction

The purpose of this paper is to understand how companies finance their operations and businesses and what tools and techniques they used for an effective investment decision. The entire paper comprises of sources of finance available for companies, how companies manage their working capital with respect to liquidity, profitability and risk. Beside this, the investment appraisal has been covered along with evaluation of company's financial performance and lastly, the paper focuses on the techniques that are used to evaluate the financial performance of the company.

Task 1) Qatar National W.L.L

1.1. Identify the sources of the finance available to a company in general (P1.1, M1)

The most important part of business is finance which is needed in the entire stages of the business operations. Business needs internal as well as external finance supports due to emerging opportunities. The sources of finance available to company in general are of internal finance and external finance (Chandra P., 2011).

Internal Finance

Internal finance is that financing where owners or partner contributes their personal money in the company's operations. If the company already exits, then this finance is usually in retained earning making fund immediate available for company. The following are the options internal source of finance:

Owners or partner personal saving

Undistributed profit of the company which is a part of retained earning

Money that is available for routine activities and operations, - working capital (current asset - current liabilities)

Sales of fixed assets such as land, building, machinery, the situation when price of the fixed asset exceed and can be sold for raising finance.

External Finance

External finance is obtained from outside the business. These are from banks, general public and government. Companies usually raise high amount of finance from such sources. The following are the option available for companies for raising external ...