PART A: Management Accounting
Students are required to select two companies from the top 50 publicly listed companies in Australia. Both the firms will be chosen from the same industry (chemical, energy or utility). This assignment applies on the principles of Management Accounting analysis learned in this course, by analysing the annual report of real companies.
Required:
1. Outline the companies' mission, objectives, strategic priorities, and operations.
2. Conduct the trend analysis of the following profitability measure for ten years for both the companies:
- Return on assets
- Return on investment
- Return on equity
- Gross profit margin
- Net profit margin
Graphically present the profitability measures.
3. Analyse the companies' financial performance using the above profitability measures. Your analysis and discussion should explain how the companies have either succeed or failed to strength their financial position over the 10-year period (2008-2017) you have examined. (Word length 1000 words).
4. Compare the overall financial position of the two companies. (Word length 1000 words).
PART B: Statistics
1. Graphically present and discuss the following variables from the financial statements of your selected companies. (Use Excel Application to do this)
- Sales (net)
- Costs of Goods sold
- Net Profit After Tax (NPAT)
- Total Assets
- Total Liabilities
2. Compute the Measures of Central Tendency over the ten-year period for the following variables from the financial statements of your selected companies. (Use Excel Application to do this)
- Sales (net)
- Costs of Goods sold
- Net Profit After Tax (NPAT)
- Total Assets
- Total Liabilities
Discuss the descriptive statistics of these variables.
3. Estimate and interpret the correlation coefficients between the following pairs of variables. (Use Excel Application to do this)
- Sales and Costs of Goods sold
- Sales and NPAT
- Sales and Total Assets
- Sales and Total Liabilities
- Sales and Owners' Equity
4. Estimate and Interpret the Least Square Regression equation of net profits on sales. Use the net profit as the dependent variable and sales as the independent variable. (Use Excel Application to do this)
5. Estimate and interpret the time series equation for the following variables from the financial statements of your selected company. (Use Excel Application do this).
- Sales (net)
- Costs of Goods sold
- Net Profit After Tax (NPAT)
- Taxes (Either provisional or actual)
- Total Assets
- Total Liabilities
- Owners' Equity
Use each of the above as the dependent variable and year as the independent variable. Estimate the forecasted value for each of the variables over 2 years from the actual figure.