Comm602 Principles Of Accounting Assessment Answer

5Report Requirements: You are to prepare a short report (maximum of eightsingle-sided A4 pages)that addresses the specific decisions currently facing different areas of the business(refer to the details on Page 1).Also, please refer to the marking guide (page 6).1.Introduction: Provide a brief and concise introduction of contents of the recommendation report and a highlight of the main recommendations. Outline Coverage2.Analysis -Operating Decision:Should Sheffield Limited introduce the ‘Sheffield Soil Test Kit’?3.Analysis -Investing Decision:Should the capital expenditure proposal to purchase a new machine, Windwhistle model 230E that can double the production capacity of your flagship product, Cropmaster 18 Fertiliser be accepted?4.Analysis -Financing Decisions:Which is the better option for financing the new machine–long-term loan from a bankor equity financing from the shareholders? Who should be the preferred supplier for the required chemical needed to produce the Cropmaster18 Fertiliser?5.Analysis -Financial Statement Analysis:What actions couldbe taken to improve the performanceof Sheffield Limitedin each of the categories of financial ratios (efficiency ratios, financial stability ratios, and profitabilityratios)?(20marks)6.Analysis -Overall:What should be the future direction of Sheffield Limited? How can Sheffield Limited remain competitive amidst the Covid-19 pandemic that is expected tohave a significant impact on the financial performance of the company?