Question $1$:$$

Title: Comprehensive Financial Reporting and Analysis

Instructions:

$1.$ Select an organization:

$$ Choose a partnership organization from any industry that you are interested in$.$

$$ Provide a brief overview of the selected organization, including its industry, business model, and any significant recent events.

$$ Highlight the admission of a new partner during the most recent fiscal year. Provide details of the terms of admission, such as:

$$ Amount of capital introduced by the new partner.

$$ Changes in the profit$-$sharing ratio.

$$ Any goodwill adjustments or revaluation of assets made at the time of admission etc.

$$

$2.$ Tasks $1$:

$$ Prepare the Statement of Profit or Loss and Other Comprehensive Income for the selected partnership organization.

$$ Prepare the Statement of Financial Position for the selected partnership organization after the admission of the new partner.

$$ Ensure the financial statements reflect adjustments for capital introduced, goodwill, revaluation of assets, and the revised profit$-$sharing ratio.

$$ Ensure the financial statements are accurate and include elements such as capital accounts, profit sharing ratios, and drawings, Assets and depreciation on NCA assets, disposal of NCA, Irrecoverable Debts and Provision for Doubtful Debts.

$$

$$

Task $2$:

$$ Use the financial data prepared in Question $1$ to compute the following financial ratios:

$$ Profitability Ratios: Net Profit Margin, Return on Capital Employed $($ROCE$).$

$$ Liquidity Ratios: Current Ratio, Quick Ratio.

$$ Efficiency Ratios: Accounts Receivable Turnover.

Interpret the Results:

$$ Highlight the partnership's financial strengths and areas requiring improvement.

$$ Suggest strategies for enhancing financial performance based on your findings.

$$

Task $3$:

$$ Based on the financial data you gathered or created in Question $1,$ prepare a Cash Budget for the upcoming fiscal year.

$$ The budget should include:

$$ Cash inflows $($e$.$g$.,$ cash sales, collection from receivables, capital introduced by the new partner$).$

$$ Cash outflows $($e$.$g$.,$ purchases, operating expenses, partner withdrawals, repayment of liabilities$).$

$$ Opening cash balance and projected closing cash balances for each period $($monthly or quarterly$).$

$$

$$ Analysis:

$$ Evaluate the cash budget to identify potential cash surpluses or deficits.

$$ Provide recommendations for managing cash flows effectively, such as maintaining liquidity or optimizing cash reserves.