MOD003319 Business Finance Assessment Brief 2026 | ARU London

MOD003319 Assessment Brief

Section A: Case Study – C. Appleby Trading Ltd (50 marks)

Read the following case carefully and refer to Appendix A for financial data.

It was the beginning of July, and the atmosphere inside the finance office at C. Appleby Trading Ltd was increasingly tense. Rising operating costs and pressure on cash reserves had become a growing concern for the management team.

“We need to improve production immediately before the busy trading period,” insisted Charles Appleby, the Managing Director.

“But Charles, our cash position is already under pressure because of increasing overheads and supplier payments,” replied Helen Morris, the Finance Manager.

Helen had managed the company’s finances for several years and understood the seasonal nature of the business very well. She knew the company would face significant cash flow pressure during the coming months.

Charles, however, remained determined.

“If we delay production now, we could lose valuable customers during the busy season. I also approved the purchase of a new machine in July to improve efficiency. We must make this work.” Helen looked concerned.

“The machine purchase, rent payments and our monthly operating costs will place significant pressure on cash flow. We may face negative cash balances if receipts from customers are delayed.”

“I understand the risk,” Charles replied, “but I need a complete cash budget for July, August and September by tomorrow morning.”

Helen opened the company’s latest financial records and began preparing a detailed cash budget to assess whether the business could maintain sufficient liquidity during the period.

Appendix A

1. Opening balance of cash at bank is £650 on 1 July.
2. Purchases and sales (in units) are as follows:

3. Units are sold for £15 each and purchased for £10 each.
4. Sales are divided as follows:
   • 20% cash sales
   • 80% credit sales
5. Debtors normally settle their accounts after two months.
6. All purchases are paid for one month in arrears.
7. Rent is £8,000 per annum, paid in quarterly instalments in January, April, July and October.
8. In July, a new machine is purchased for £6,500.
9. An old machine is sold for £2,700 in September.
10. Administrative salaries remain constant at £13,200 per month.
11. Overheads excluding salaries and depreciation are expected to be £33,500 per month.
12. Depreciation of fixed assets is £10,000 per month on a straight-line basis.
13. A staff performance bonus of £18,000 is due in April.
14. Commission income of £500 will be received in November.
15. Overdraft facility: £75,000

Task 1

Task 1.1: Prepare the monthly Cash Budgets for July, August, and September

(37 marks)

Task 1.2: Evaluate the cash position of the business during the period and discuss the main reasons for any cash surplus or deficit.

(3 marks)

Task 1.3: Based on your findings from Task 1.1, propose and assess short-term financing options and the internal actions the Finance Manager could consider to improve the company’s cash flow position.

(10 marks)

Section B: Financial Concepts & Critical Commentary  (40 marks)

Each task below requires an essay-style response, demonstrating critical understanding of business finance principles.

Task 2: Going Public 

Critically evaluate the implications of transitioning from a private limited company to a publicly listed company. In your discussion, consider how public listing impacts access to finance, ownership structure, regulatory obligations and long-term strategy. Use real-world examples where relevant.

(20 marks)

Task 3: The True Value of External Audits 

Critically discuss the role of external audits in strengthening financial accountability and investor confidence.

To what extent do you agree with the following statement:

“External audits offer limited value to organisations as they are costly, repetitive, and primarily conducted to satisfy legal requirements rather than support business decision-making.”

In your answer, support your discussion using relevant auditing principles, corporate governance frameworks, and real-life examples.

(20 marks)

Academic Writing & Referencing 

Marks will be awarded for clear structure, formal academic language, appropriate formatting and correct use of Harvard-style referencing throughout.

 (10 marks)

Total marks: 100

Answer

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