it is of 2000 words
[Type text][Type text][Type text] INDIVIDUAL ASSIGNMENT TRIMESTER 1, 2018 ACC1100 ACCOUNTING FOR DECISION MAKING Assessment task Due date: Friday 18th May 2018 at Midnight-Week 10 Weighting: 25% Length: 2000 words Learning outcomes assessed: 2, 4, 5, 7 Graduate attributes demonstrated: Discipline-Specific Knowledge Workplace skills and qualities Communication proficiency Critical thinking and problem-solving skills The task: You are required to write a 2000 word report/essay on analysis & interpretation of financial statements. This assessment task is designed to address learning outcomes 2, 4, 5, and 7 as published in the Unit Profile. Information The owner of Melbourne Trading Corporation has provided you with the following financial information. Income Statement 2014 2015 Budget year 2016 Sales 400,000 405,000 410,000 Less Cost of Sales 250,000 260,000 275,000 Gross profit 150,000 145,000 135,000 Less Other expenses Selling expenses 50,000 55,000 56,650 Administration expenses 40,000 42,000 39,900 Finance expenses 10,000 11,500 13,800 Profit (before interest) 50,000 36,500 24,650 Interest expense 15,000 18,000 20,000 Net profit 35,000 18,500 4,650 Statement of Financial Position 2014 2015 Budget year 2016 Current assets (Note: 1) 93,000 90,000 90,000 Non-current assets 90,000 110,000 212,000 Total assets 183,000 200,000 302,000 Current liabilities (Note: 2) 28,000 42,000 80,000 Non-current liabilities 70,000 89,500 167,350 Total liabilities 98,000 131,500 247,350 Total equity 85,000 68,500 54,650 Note: 1 - Current assets include: · Accounts receivable 23,000 30,000 40,000 · Stock on hand 40,000 45,000 50,000 Note: 2 - Current liabilities include: · Bank overdraft 35,000 Required You have been asked to analyse the company’s financial statements and write a report to the company directors which: a) Reports on the profitability and financial stability of the company b) Makes recommendations to improve financial performance Notes: 1. In your report the owner would like you to provide written answers in the form of a report style Format to each of the following questions regarding the accounts. Question 1Is the business providing its owners with a satisfactory return? Question 2Has the entity managed to control its level of debt? Question 3What has debt been used for? Question 4Have assets been effective in producing sales and profits? Question 5Have expenses been kept under control? Question 6Is the entity’s short term liquidity sound? Question 7Has the Operating Cycle assisted the entity’s liquidity position? Question 8Provide recommendations that will improve profitability, liquidity and financial stability. 2. Your report should include at least 4 graphs comparing ratios and an appendix that shows your calculations for each ratio. Below you will find a table that includes data and ratios that you must complete and submit. Financial indicator Expressed as Expressed as Profitability Financial Stability Return on owners funds ratio % Short-term Return on assets ratio % Working capital $ Gearing ratio % Working capital rate $ Asset turnover rate $ Fixed asset turnover rate $ Stock turnover rate days Stock turnover days Debtors turnover rate days Debtors turnover days Operating cycle days Profit ratio % Long-term Gross profit ratio % Gearing ratio % Cost of goods sold ratio % Interest coverage rate $ Selling expense ratio % Administration expense ratio % Finance expense ratio % Interest expense ratio Your responses are to be prepared using a Word Processing package and be presented in a report style format with your name and student no. included in the footer Your assignment should provide a basic structure as outlined in the section – Structure of Assignment. Structure of assignment: The following provides a guide to how you might structure your assignment: Title page Introduction Discussion Conclusion References Appendices (if applicable) The conditions: 1. Writing assignments must not exceed the word counts indicated. Double space your pages, use a 12-pt Arial font, use 2 cm margins on all four sides of your page. 2. Your assignment must include a cover page, responses to all the questions and a properly referenced bibliography. 3. Evidence of extensive research beyond the prescribed text is required. Students may use the prescribed text to guide your research, but it should not be used as a primary reference source. Students are expected to conduct research using peer-reviewed journal articles. 4. Penalties may apply for late submission. Extensions will be granted only if they are supported by appropriate documentation prior to the due date. See OIHE SPECIAL CONSIDERATION POLICY. 5. This assignment must be handed in via Turnitin (link provided via Moodle) for successful completion of the course and will count 25 marks towards the final mark. 6. Ensure that references are appropriately acknowledged in your bibliography. Refer to OIHE ACADEMIC INTEGRITY POLICY regarding plagiarism. 7. The Harvard Referencing System (author-date) should be used. [Harvard (Author-date) is based on: Commonwealth of Australia 2002, Style manual for authors, editors and printers, 6th edn, rev. Snooks & Co., John Wiley & Sons, Brisbane.] Useful websites: · "Harvard System of Referencing Guide". Anglia Ruskin University. 21 May 2012. Accessed 25 July 2013. · “Rec Cite” , “Harvard Style”. University of Melbourne. Accessed 25 July 2013. · Chernin, Ei (1988). "The 'Harvard system': a mystery dispelled", British Medical Journal. October 22, 1988, pp. 1062–1063. Marking guide You will be assessed according to the following marking scheme: Performance Standard Assessment Task Criteria Weight HD 80-100% D 70-79% C 60-69% P 50-59% F 0-49% Knowledge & understanding 30% · In depth, expert knowledge. · Superior proficiency in application of knowledge to problem. · Expert knowledge · Proficient application of knowledge and understanding. · Competent level of knowledge · Accurate application of knowledge and understanding. · Superficial knowledge. · Some inaccuracies in knowledge and understanding. · Lack of knowledge · Significant inaccuracies in knowledge and understanding. Logic of argument(s) 25% · Central argument(s) expertly developed · Topic covered in depth in a scholarly manner. · Central argument(s) clearly developed and supported by evidence · Topic covered in depth and is concise and fluent. · Central argument(s)developed and supported by evidence · Topic covered in depth but with some gaps, · Central argument(s) has been developed but not fully supported by evidence · Progression of argument and ideas not strong. · Lack of central argument(s) and evidence base · Argument incoherent and difficult to follow. Analysis 30% · Expert scholarly demonstration of critical analysis · Conclusion draws argument in influential and scholarly manner. · Considerable demonstration of critical analysis · Comprehensive and competently developed conclusion · Good demonstration of critical analysis · Conclusion is logical outcome of argument(s). · Critical analysis partially evident but not fully developed · Conclusion is evident but not strong. · Critical analysis lacking or absent. · Conclusions poor or absent. Research / referencing 15% · Expert scholarly use of wide range of relevant sources · Expert paraphrasing and referencing. · Scholarly use of wide range of relevant sources · Good application of paraphrasing and referencing. · Wide use of mostly relevant reference sources · Reasonable application of referencing. · Limited use of relevant references sources · Some inaccuracies in references and in-text citations. · Limited research or poorly researched · Considerable inaccuracies in references and in-text citations. Page 4 of 5 OzfordHE.edu.au 310 King Street Melbourne VIC 3000 Australia T +61 3 8663 7188 E
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