FIN7004D Analysing Financial Statements Case Study Assignment Brief 2026 | AU

FIN7004D Assignment Brief 

As part of the formal assessment for the programme, you are required to submit a Financial Analysis case study assignment. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments.

FIN7004D Learning Outcomes: 

After completing the module, you should be able to: 

1. Construct and evaluate financial statements, including any associated financial and business risks 
2. Compare and contrast the financial statements of different entities, both over time and across a range of industries 
3. Critically appraise the nature and validity of information in annual reports 
4. Analyse the complex economic environment in which an entity operates and its strategy, including ethical concerns

All learning outcomes must be met to pass the module.

Guidance

Your assignment should include: a title page containing your student number, the module name, the submission deadline and the exact word count of your submitted document; the appendices if relevant; and a reference list in the AU Harvard system(s). You should address all the elements of the assignment task listed below. Please note that tutors will use the assessment criteria set out below in assessing your work. 

You must not include your name in your submission because Arden University operates anonymous marking, which means that markers should not be aware of the identity of the student. However, please do not forget to include your STU number. 

Maximum word count: Equivalent to 2,500 words -excluding tables, workings, references and appendices 

Please refer to the full word count policy, which can be found in the Student Policies section here: Arden University | Regulatory Framework 

Please note the following: 

Students are required to indicate the exact word count on the title page of the assessment. 

The word count includes everything in the main body of the assessment (including in-text citations and references). The word count excludes numerical data in tables, figures, diagrams, footnotes, reference list and appendices. ALL other printed words ARE included in the word count. 

Please note that exceeding the word count by over 10% will result in a 10-percentage point deduction.

Assignment Task

Answer Both Questions 

Question 1 

Allen Computer Systems Enterprise (ACSE) is a store located in the Riverdale Shopping Mall in Hamilton. Jackie, the owner, started up the store as a start-up on 1 April 2021, and she sells all types of computers and related accessories. The store employs two workers. She provides you with the following information for the year ended 31 March 2022:

Description	Amount
On 1 April 2021, Jackie deposited her savings into a business bank account to start up the business	$28,000
On 1 April 2021, a bank loan (repayable over a 5 year period) was approved to ACSE and was deposited into the business bank account.	$25,000
On 1 April 2021, Equipment and Fittings were installed and paid for. The equipment and fittings were expected to last 20 years with no scrap value.	$15,000
On 1 July 2021, Jackie invested her vehicle into the business to use for delivery of computers to customers. The vehicle is expected to last 10 years with no scrap value.	$8,000
Cash collected from customers during the year	$59,000
Still owing from customers at the end of the year (to be collected next year)	$9,000
Cash paid for products to resell in the business	$17,000
Owing for products at the end of the year (to be paid next year)	$10,000
Cost of unsold products on hand at the end of the year (to be sold next year)	$8,000
Operating Expenses (includes Rent, Wages, Advertising, Phone and Electricity)	$21,000
Operating Expenses owing and unpaid for the year ended 31 March 2022	$5,000
Cash drawings for personal expenses were made by Jackie during the year from the business bank account.	$35,000
Bank long-term loan principal repayments were made	$5,000
Interest paid on the bank loan (10%)	$2,500
Bank overdraft facility arranged by Jackie for the ACSE business	$10,000
Cash at Bank balance as of 31 March 2022	$16,500

Jackie is keen to evaluate how well her business has performed for the first year of operations.

Required: 

A. Prepare the following financial statements for Allen Computer Systems Enterprise: 

I. Cash Flow Statement for the year ended 31 March 2022 
II. Income Statement for the year ended 31 March 2022 and III. Balance Sheet as at 31 March 2022 (30 marks) 

B. Evaluate how well you think Jackie’s business performed for the first year of operations. Are there any recommendations that you would make to Jackie to improve the performance and position of her business? (10 marks) 

C. Jackie has been asked by her colleague about the difficulty she faced in reading and understanding financial statements. Jackie has asked for your help to answer the question. The query raised was that the accountant is entitled to assume that readers of financial statements will read and understand all the notes to the accounts. Advise Jackie about the validity of this statement. (10 marks)

Question 2 

When deciding whether to extend credit to a customer, vendors (who become short- term creditors when credit is extended) often focus on the customer’s cash flows and its working capital since these are the company’s primary sources of cash in the short run. 

As you know, ratio analysis performed by short-term creditors would include the following: working capital, current ratio, acid-test (quick) ratio, accounts receivable turnover, and inventory turnover. 

Search the Orbis Database available from Arden University Library (under Subject Guide for Digital Finance).

• Pfizer Inc (PFE).
• Johnson & Johnson (JNJ)
• Merck & Co., Inc. (MRK) 

Required: 

Assume that you are a short-term creditor of each company. Using data from the most recent annual reports of these companies, perform the ratio analysis that a short-term creditor would perform. Comment on the relative short-term liquidity of the companies. (50 marks) (2,500 words) (Total 100 marks) (LOs: 1, 2, 3 and 4)

Formative Feedback 

You have the opportunity to submit a draft submission to receive formative feedback. 

The feedback is designed to help you develop areas of your work, and it helps you develop your skills as an independent learner. 

If you are a distance learning student, you should submit your work by email to your tutor, no later than 2 weeks before the actual submission deadline. If you are a blended learning student, your tutor will give you a deadline for formative feedback and further details. 

Formative feedback will not be given to work submitted after the above date or the date specified by your tutor, if a blended learning student. 

Referencing Guidance 

You MUST underpin your analysis and evaluation of the key issues with appropriate and wide-ranging academic research and ensure this is referenced using the AU Harvard system(s). 

Follow this link to find the referencing guides for your subject: Arden Library

Submission Guidance 

Assignments submitted late will not be accepted and will be marked as a 0% fail. 

Your assessment can be submitted as a single Word (MS Word) or PDF file, or as multiple files. 

If you choose to submit multiple files, you must name each document as the question/part you are answering along with your student number, i.e., Q1 Section A STUXXXX. If you wish to overwrite your submission or one of your submissions, you must ensure that your new submission is named the same as the previous one for the system to overwrite it. 

You must ensure that the submitted assignment is all your own work and that all sources used are correctly attributed. Penalties apply to assignments that show evidence of academic unfair practice. (See the Student Handbook, which is available on the A-Z key information on iLearn.)

Assessment Criteria (Learning Objectives covered-all)

Grade	Mark Bands	Generic Assessment Criteria
		Level 7 is characterised by an expectation of students’ expertise in their specialism. Students are semi-autonomous, demonstrating independence in the negotiation of assessment tasks (including the major project) and the ability to evaluate, challenge, modify and develop theory and practice. Students are expected to demonstrate an ability to isolate and focus on the significant features of problems and to offer synthetic and coherent solutions, with some students producing original or innovative work in their specialism that is potentially worthy of publication by Arden University. A clear appreciation of ethical considerations (as appropriate) is also a prerequisite.
Distinction	80%+	Outstanding analysis of key issues and concepts. Outstanding development of conceptual structures and argument, making consistent use of scholarly conventions. Outstanding research skills, independence of thought, an extremely high level of intellectual rigour and consistency, exceptional expressive / professional skills, and outstanding creativity and originality. Outstanding academic/intellectual skills. Work pushes the boundaries of the discipline and demonstrates an awareness of relevant ethical considerations. Work may be considered for publication by Arden University.
Distinction	70–79%	Excellent analysis of key issues and concepts. Excellent development of conceptual structures and argument, making consistent use of scholarly conventions. Excellent research skills, independence of thought, an extremely high level of intellectual rigour and consistency, exceptional expressive / professional skill, and substantial creativity and originality. Excellent academic/intellectual skills. Work passes the boundaries of the discipline and demonstrates an awareness of relevant ethical considerations. Work may be considered for publication by Arden University.
Merit	60–69%	Very good level of competence demonstrated. High level of theory application. Very good analysis of key issues and concepts. Development of conceptual structures and argument making consistent use of scholarly conventions. Some evidence of original thought and a general awareness of relevant ethical considerations.
Pass	55–59%	A good performance. A good knowledge of key issues and concepts. Fairly descriptive, with some analysis of existing scholarly material, and some argument development. Limited evidence of original thought. Some awareness of relevant ethical considerations. Good professional skills (where appropriate).
Pass	50–54%	A satisfactory performance. Basic knowledge of key issues and concepts. Generally descriptive, with restricted analysis of existing scholarly material and little argument development. Use of scholarly conventions inconsistent. The work lacks original thought. Limited awareness of relevant ethical considerations. Satisfactory professional skills (where appropriate).
Marginal Fail	40–49%	Limited research skills impede the use of learning resources and problem-solving. Significant problems with structure/accuracy in expression. Very weak academic professional skills. Limited use of scholarly conventions. Errors in expression and the work may lack structure overall.
Fail	39% and below	A poor performance in which there are substantial gaps in knowledge and understanding, underpinning theory and ethical considerations. Little evidence of research skills, use of learning resources and problem-solving. Major problems with structure/accuracy in expression. Professional skills not present. Very weak academic professional skills. No evidence of use of scholarly conventions.