Accounting for Business Decisions –HI5001

| September 29, 2018

Assessment
2
Accounting
for Business Decisions –HI5001

Note: This assignment carries
30% weightage. Students not to worry about the marks shown in each
section as the marks shown in each section are to help the lecturers mark. Due
Date:Week 10 before 5.00 pm.

Group Assignment is divided into 2
Sections: Section A and Section B. Each with 15% marks with a total of 30%.
Students are advised to use Microsoft Excel wherever necessary.

Section A.

Requires a group to
undertake some research, the assignment aims to develop understanding of
financial statements and their use in decision-making.

The task
is to analyse and compare 2 publicly listed companies specifically in the
same industry,

(use
ASX’s website to select a company) and be able to understand the structure of
financial statements.

1) The group needs to give a
general overview of the company regarding its Mission Statement, Vision
Statement and business structure. (9 marks)

2) Review (Compare) the Last 2
years balance sheet (pref: 2011 and 2010) of the 2 companies and indicate the
following: (3 marks)

The
amount of total current assets

The
amount of total non-current assets The amount of total current liabilities

The
amount of total non-current liabilities The amount of total stockholder’s
equity

3) Review the most recent
year’s(pref: 2011 and 2010) income statement and indicate the following: (3
marks)

? total (operating) revenues

? cost of goods sold (if listed)

? total expenses (before income taxes)

? any non-operating (or extraordinary) gains
and losses; and

? Earnings per common share.

4) Review the statement of
cash flows for the most recent year (pref: 2011 and 2010) and indicate the
following: (3 marks)


net
cash inflow (outflow) from operating activities;


net
cash inflow (outflow) from financing activities;


net
cash inflow (outflow) from investing activities; and


net
increase (decrease) in cash during the year.

5)
With the information
collected from Balance Sheet, Profit and Loss Statement, and cash flow
Statement. Conduct a Horizontal Analysis (within) of each company. Identify the
Variance
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and write a variance report
for each of them (Balance Sheet, Profit and Loss Statement, and cash flow
Statement). (20 marks)

6) With the information
collected from Balance Sheet, Profit and Loss Statement. Conduct a Vertical
analysis of the last year 2011 of each company and compare and report on items
mentioned in both the reports. (12 marks).

Section B:Q1
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The
following transactions occurred in Canberra limited in 2011.

Issue share capital for $200,000
cash.

Purchased $35,000 of inventory on
credit

Paid $28,000 to Accounts Payable

Sold Inventory costing $60,000
for @270,000. All sales are on Credit.

Collected $52,000 from Customers

Prepaid $12,000 rent for the year
commencing 1 January 2011.

Depreciated property
and equipment for the year using the straight line method (20 per cent per
annum).

Dividends declared and paid
totalled $30,000

Borrowed $100,000 on 1st July 2010. The loan
is due on 30 June 2012 and carries a 10% interest rate. Paid $4,000
interest on this Loan during 2011.

On 1st of November paid
$24,000 for an insurance policy covering 1st November 2010 to 31st October 2011.

Paid wages of $90,000; wages of
$20,000 had been earned but not paid.

Received interest of $5000 in
cash from the bank.

On 31st December 2011:

The unearned revenue account had
a balance of $5000

Accrued interest revenue had a
balance of $2000.

REQUIRED:

1.

Prepare journal entries for the
above transactions. (10 marks)

2.

Prepare Ledgers

(10 marks)

3.

Prepare closing Entries

(10 marks)

4.

Prepare a 10 Column worksheet.

(10 marks)

5.

Prepare an Income
Statement and balance sheet for Canberra Limited for the year ending

31st December 2012.

(10 marks)

General Rules
and Requirements:

For
Section A the report should be prepared by a small group (with a maximum of
three to four members) with the contribution of each member
specified on the report’s title page. Reports must be confined to 3,000 words
(+/- 5%). A title page, table of contents page (based on your report headings),
introduction, conclusion and list of the references actually cited should
accompany your report. Font type should be Arial (size 11), paragraph spacing
should be equal to 1.5.

Note: any additional
material from external sources that you “paste” into your report is NOT
included in the word limit. Also, ensure it is appropriately referenced.

Don’t forget to
upload ontoSafe assign, one copy per group (do not upload more than one copy). Also,one
hard copy to be handed to the lecturer before the
schedule time as mentioned above.

Due
Date:
Week 10 before 5.00 pm.
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College_ T3_2013

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