Accounting for Business Assignment -
The assignment requires you to prepare a business report using the template that has been attached.
Task Information -
You have randomly been assigned an Australian publicly listed company which can be found by accessing the excel document in the task 2 assessment folder. To complete the below requirements, you need to locate the income statement and balance sheet for your company for 2016 and 2017.
The following options are available to receive support if required:
- make an appointment with your tutor
- attend an academic skills workshop- referencing and report writing
- access the academic skills resources on blackboard
- make an appointment with an academic skills advisor
Task Requirements -
Requirement 1: In your own words, provide a brief overview of your company which includes information that will help you to make decisions regarding the company's financial situation (e.g., when they were established, what industry are they in, what do they sell).
Requirement 2: (a) For 2016 and 2017, calculate the following ratios and show your workings (no marks will be awarded if workings are not shown):
- Current Ratio
- Gross Profit Margin
- Return on Equity
- Return on Assets
- Days Inventory Ratio
(b) In your own words, using appropriate references, provide a definition of each of the ratios.
(c) State what each of these ratios say about your company with reference to appropriate benchmarks that you should have identified in part b.
Requirement 3: (a) Choose another company from the same industry as your company. Prepare a horizontal analysis for the chosen company and your allocated company using the following income statement items from 2016 and 2017:
- Sales
- Cost of goods sold incl. D&A
- Gross income
- Selling, general and administration expense (SG&A)
- Net income
(b) Define what a horizontal analysis is and how it is useful.
(c) Compare the two companies to identify, from a management perspective, which company is performing better and provide two recommendations which could lead to an increase in performance.
Attachment:- Assignment Files.rar