End$-$of$-$Module Assessment $(2023-24)($Semester $1)$

Module Code$/$Title: MPR$3629$ Event Budgeting

Required:

$($a$)$ Calculate $($to $2$ decimal places$)$ the following ratios for both years of Loki Industrial Limited:

$($i$)$ gross profit margin;

$($ii$)$ net profit margin;

$($iii$)$ current ratio;

$($iv$)$ quick ratio;

$($v$)$ inventory turnover $($in days$)($based on average inventory$)$;

$($vi$)$ trade payables payment period $($in days$)$; and

$($vii$)$ trade receivables collection period $($in days$).$

Note: Show the Formula in the calculation.

$(28$ marks$)$

$($b$)$ Based on the ratios calculated in part $($a$),$ comment on the relative performance of Loki Industrial Limited for $2023$ in the following areas:

$($i$)$ profitability;

$($ii$)$ liquidity; and

$($iii$)$ operational efficiency of inventory turnover.

$(16$ marks$)$

$($c$)$ Investors and lenders are users of the accounting information of Loki Industrial Limited. Briefly explain why both the mentioned parties need the accounting information of the company.

$(6$ marks$)$

Question $2($Total $50$ marks$)$

You and your team have been assigned to prepare an event budget for a wedding ceremony and reception to be held in a prestigious hotel in Hong Kong. The objective of this project is to demonstrate your ability to create a comprehensive budget by calculating revenues and expenditures, and supporting them with appropriate references or documents. The project will be evaluated based on the accuracy of calculations, proper use of references, and adherence to the budget preparation process.

Background for the Case:

The prestigious hotel selected for the event is located in the heart of Hong Kong or Kowloon Peninsula. It offers luxurious event spaces, exceptional service, and a stunning backdrop for the wedding ceremony and reception.

The wedding has a romantic and elegant theme, with a colour palette of soft pastels and gold accents. The overall ambiance aims to create a timeless and enchanting atmosphere for the guests.