Assignment: Accounting for Decision Making
Length: 1500 words.
Learning Outcomes
a) Apply relevant accounting concepts to simple business scenarios.
b) Interpret and analyse the information contained in general purpose financial statements, to evaluate the overall financial position and
performance of a business.
Requried
Part 1 - to be done in Excel Workbook
This Excel Workbook is available on Blackboard under assessment section. Download it, perform calculations on it and submit it.
1. Vertical analysis of financial statements:
a. Conduct Vertical Analysis of Crystal Hotel's Statement of Financial Position as at 30 June 2018 using the Vertical Analysis SOFP worksheet. Round your numerical answers to two decimal places.
b. Conduct Vertical Analysis of Crystal Hotel's Statement of Profit and Loss for the year ended 30 June 2018 using Vertical Analysis P&L worksheet. Round your numerical answers to two decimal places.
2. Conduct Ratio Analysis using Ratio Analysis worksheet. Round your numerical answers to two decimal places.
Part 2 - to be included in the Business report
3. Using the Income Statement Vertical Analysis prepared in Excel workbook, conduct Income Statement comparative analysis to the industry benchmarks included in Table 1 and Table 2 of the Appendix.
Comment on how the business is performing comparing to the industry.
Include comments on Revenue, Cost of sales (excluding personnel costs), Personnel costs, unallocated Operating costs and Total costs proportions.
Make recommendations on areas that need improvements or further investigation, based on the results of your comparative analysis.
4. Using the results of the Ratio Analysis in Excel workbook, comment on Profitability, Efficiency, Liquidity and Solvency of the business. With reference to the industry data provided, make recommendations where appropriate.
5. There are additional industry specific performance indicators and benchmarks that the hotel could use when comparing itself to the industry. Conduct a research and recommend 3 additional industry specific benchmarks the hotel could use in their comparative analysis. Include a brief explanation of each benchmark you are recommending including formula where appropriate.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Case-Study-Crystal-Hotel.rar