Answer To: have to ask the price for this assignment
Khushboo answered on Sep 17 2021
Instructions
C-COR Digital Import Pty Ltd
Financial performance for the year ending 2017 and 2018
As a business advisor you have been assigned the task to conduct an analytical review of the company’s performance (Profit and loss statement) for the year ending 2017 and 2018
in line with the company’s master plan to expand its operation to Europe.
C-COR Management asked you to include in your analytical review the following:
1. Compare and investigate 2017 and 2018 Profit and Loss Statement balances for movement greater than 15% and provide a brief and meaningful explanation for any correlation noted.
2. Using Profitability ratios outline whether the company profitability is sustainable in the near future.
3. What short term strategy the company should adopt to increase the net profit by 30%
4. Advise whether the current company business structure is the most efficient and most suitable to this sort of enterprise.
5. Advise on the current format of the Profit and loss Statement and whether it is in line with Australian reporting and statutory requirements
Q1
C-COR Digital Import Pty Ltd
Financial performance for the year ending 2018 and 2017
2018 2017 Movement % of sales (2018) % Movement
SALES
Sales income 9,800,400 5,402,944 4,397,456 100% 81%
COST OF SALES
Purchases 3,549,652 1,030,905 2,518,747 36.22% 244%
Total Cost of Sales 3,549,652 1,030,905 2,518,747 36.22% 244%
GROSS PROFIT 6,250,748 4,372,039 1,878,709 63.78% 43%
EXPENSE
Accounting fees 64,610 23,898 40,712 0.66% 170%
Audit fees 15,780 38,510 -22,730 0.16% -59%
Bank charges 42,170 23,231 18,939 0.43% 82%
Business Application Services 24,804 28,512 -3,708 0.25% -13%
Commission paid 178,514 109,060 69,454 1.82% 64%
Consultancy fees 159,970 110,719 49,251 1.63% 44%
Doubtful debts 12,718 3,000 9,718 0.13% 324%
Depreciation 69,671 84,383 -14,712 0.71% -17%
Distribution costs 1,925 2,423 -498 0.02% -21%
Donations 7,757 42,574 -34,817 0.08% -82%
Electricity 25,847 24,305 1,542 0.26% 6%
Entertainment expenses 7,445 9,033 -1,588 0.08% -18%
Cartage & Logistic 101,460 108,698 -7,238 1.04% -7%
Fringe benefits tax 22,346 25,155 -2,809 0.23% -11%
Fuel and oil 17,861 379 17,482 0.18% 4613%
Holiday pay 20,638 5,933 14,705 0.21% 248%
Insurance 62,020 57,121 4,899 0.63% 9%
Interest paid 198,343 190,822 7,521 2.02% 4%
IT costs 7,022 7,820 -798 0.07% -10%
Legal costs 8,223 4,673 3,550 0.08% 76%
Licensing fees 1,540 550 990 0.02% 180%
Long service leave 2,499 23,623 -21,124 0.03% -89%
Marketing & communication 133,242 170,941 -37,699 1.36% -22%
Motor vehicle expenses 92,487 60,241 32,246 0.94% 54%
Network Application Services 45,139 58,235 -13,096 0.46% -22%
Payroll tax 57,786 32,801 24,985 0.59% 76%
Postage 3,789 4,005 -216 0.04% -5%
Quality costs 24,726 19,111 5,615 0.25% 29%
Rent 237,015 211,855 25,160 2.42% 12%
Repairs and maintenance 48,731 33,844 14,887 0.50% 44%
Salaries and wages 1,459,227 994,360 464,867 14.89% 47%
Other Personel costs 70,601 -111,493 182,094 0.72% -163%
Security costs 12,138 15,682 -3,544 0.12% -23%
Temporary Personel 190,578 177,678 12,900 1.94% 7%
Staff training and welfare 49,553 19,266 30,287 0.51% 157%
Stamp duty 12,552 8,127 4,425 0.13% 54%
Storage fees 23450 27890 -4,440 0.24% -16%
Sundry expenses 25,213 32,425 -7,212 0.26% -22%
Superannuation 176,533 125,817 50,716 1.80% 40%
Telephone 85,316 69,057 16,259 0.87% 24%
Travelling expenses 237,149 253,533 -16,384 2.42% -6%
Warranty expense 27,199 -221,205 248,404 0.28% -112%
Workcover 7,890 5,860 2,030 0.08% 35%
Total Expense 4,073,477 2,912,452 1,161,025 41.56% 40%
OTHER REVENUE
Commission received 25,000 29,000 -4,000 0.26% -14%
Interest Income 6,864 9,096 -2,232 0.07% -25%
Foreign currency translation gains/loss -349,954 -220,355 -129,599 -3.57% 59%
Total Other Revenue -318,090 -182,259 -135,831 -3.25% 75%
NET PROFIT BEFORE...