Assignment: Accounting for Decision Making - Ratio Essay Example
Accounting for Decision Making ASSIGNMENT – TRIMESTER ONE, 2013 (Relates to Topic 4) Represents 20% of the assessment for this unit DUE DATE: ASSIGNMENT PLANNER VIA MIBT PORTAL AND HARDCOPY: TUESDAY 9 April, 2013 BY 5. 00pm FINAL ASSIGNMENT VIA MIBT PORTAL AND HARDCOPY: TUESDAY 7 May, 2013 BY 5. 00pm NOTE the following general submission points: 1. Assignment MUST be completed in groups of no more than THREE students. Students CAN NOT complete assignment with students from other lecturers classes.
All students MUST submit an electronic copy of the assignment planner and the final assignment through MOODLE (using the ‘Assignment Submission Link’) on the MIBT PORTAL - moodle mibt. All group members’ names must be clearly stated on the cover page of the assignment for all electronic and hard copy lodgments. Please refer to instructions file uploaded on the portal (under ‘MOODLE’ – ‘Week 1’) on how to submit MAA103/MAAP103 assignment planner and final assignment electronically through MOODLE. Online submission should be in one file. That is, all parts of the assignment must be combined into one word processing file.
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Save and name file as your student MIBT ID. NUMBER. 2. MAA103 – Accounting for Decision Making NOTE the following general submission points continued: 3. Only ONE HARDCOPY of assignment planner and final assignment per group is to be submitted. You MUST include an ASSIGNMENT COVER SHEET only for your hard copy version of your final assignment with all names included. Each student must submit a separate Assignment Cover Sheet with the HARDCOPY of their final assignment. If an assignment cover sheet is not attached NO MARKS will be given.
Additionally, ONE copy of the Assignment Mark Sheet (attached on page 9 of this assignment) must also be submitted with your assignment. Do NOT submit assignment in a plastic folder or plastic pocket. 4. This assignment consists of TWO components – an assignment planner AND final assignment: both components must be completed. Submission of your Assignment Planner will carry two (2) marks which will be awarded with the final assignment submission (see page 4 for requirements) 5. THE ASSIGNMENT PLANNER AND FINAL ASSIGNMENT MUST BE TYPED.
The final assignment must be SINGLE SIDED, using Arial 12 font size, properly referenced and ideally 1. 5 line spacing (refer to ‘Guide to assignment writing and referencing booklet) and include a REFERENCE LIST (minimum of 6 references should be used) in alphabetical order outlining the textbook(s) and any articles, electronic sources etc. used. The Harvard style should be used for referencing and citations. Marks will be deducted if your work is not properly referenced or a reference list not attached. Read and adhere to the Assignment Submission and Plagiarism Notice on page 6 of your unit outline carefully.
If students are found copying from other students or using a previous trimester’s assignment to complete this assignment then a ZERO result will be awarded. 6. Hardcopy of assignments should be placed in your lecturer’s pigeon hole located in building la on level 4 MIBT (next to room la4. 111) by the due date. 7. Word limit for report is 2000 words minimum to 2500 words maximum (word limit excludes reference list and appendices). NOTE: Assignments submitted late and without prior approval will be penalised. A penalty of 10% of the available marks will be deducted for every day the assignment is late.
Assignments received after a week, and without approved extension, will not be marked. These will be held until final grading and may be taken into consideration in a pass/fail situation. Please note that, an extension will only be given by the Unit Coordinator/lecturer and must be requested at least 48 hours prior to submission date. Please read checklist guidelines on page 8 of this document. Trimester 1, 2013 Page 2 MAA103 – Accounting for Decision Making Final Assignment requirements: 2000 words minimum to 2500 words maximum (excluding appendices and reference list) for final assignment.
A deduction of 2 marks will apply if the number of words is 10% under 2000 words or over by more than 10% of 2500 words. Assignment Objective: The objective for this assignment is for you to perform and interpret financial ratios, that is, provide ratio analysis of financial statements over a two year period (2011 through 2012) and together with all other relevant information, advise on these organisations as investment opportunities. The companies to be analysed are: 1. Fantastic Holdings Ltd. (FAN) 2. Super Retail Group Ltd. (SUL) (Former Name: Super Cheap Auto Group Ltd. )
Fantastic Holdings Ltd. KEY RATIOS Gross Profit Margin Net Profit Margin (after Tax) Return on Equity Asset Turnover (Times) Return on Assets Inventory Turnover (Days) Debtors Turnover (Days) Creditors Turnover (Days) Current Ratio Quick Ratio Debt Asset Ratio (Total Debt) Debt Equity Ratio (Total Debt) Times Interest Earned (Times) Super Retail Group Ltd. 2011 45. 25% 5. 09% 18. 31% 1. 909 times 11. 06% 97. 86 days 4. 31 days 40. 89 days 2. 34 0. 33 46. 91% 32. 66% 8. 85 times 2011 47. 47% 4. 46% 19. 30% 2. 598 times 12. 08% 66. 29 days 2. 61days 25. 28 days 1. 96 0. 37 40. 01% 17. 88 % 35. 6 times 2012 48. 18% 4. 71% 19. 26% 2. 494 times 12. 18% 61. 89 days 2. 31 days 21. 71 days 1. 75 0. 44 39. 02% 18. 24% 80. 95 times 2012 43. 92% 5. 05% 12. 14% 1. 194 times 7. 15% 91. 95 days 3. 93 days 43. 67 days 2. 17 0. 33 50. 28% 56. 33% 6. 83 times Please note all ratios provided above have been taken from the database FinAnalysis and some have been calculated manually. Please accept these ratios as a given. You are not required to show calculations for the ratios provided above. Trimester 1, 2013 Page 3 MAA103 – Accounting for Decision Making REQUIRED – Assignment Planner requirements:
After forming your groups, complete, TYPE and submit through MOODLE via MIBT PORTAL, as well as a HARDCOPY of the documents on pages 10 and 11 by the due date listing each of the group members names, your plan and timeline for completing the assignment. That is, a plan and timeline of how you and your group members will research and prepare the assignment (this means that your groups should be organised and a discussion amongst members should have taken place together with some preliminary research on the two companies and financial statement analysis). The plan should be brief.
It may be in key point format and chronological showing your progress to the due date. In addition, a list of 6 references which you plan to use to assist with your report preparation should also be submitted. This may include electronic databases, texts, journals or other references, but does not include the company annual reports, websites or the prescribed textbook. Each person in a group must submit an electronic copy via the MIBT PORTAL. Each group must also attach ONLY ONE HARDCOPY of the planner (pages 10 and 11) to their final hardcopy assignment as an appendix.
This will be worth 2 marks. If you choose not to submit the planner, 2 marks will be deducted from your final assignment result. Please Note: The Assignment Planner has been uploaded as a document file on the portal to assist you with your typing. Purpose of the Planner The purpose of the Planner is to encourage you to start working on the assignment early. We, the unit team, are aware that you can all submit a report by the due date, but often students do not commence working on the task until the last minute and this, unfortunately, has been reflected in the marks attained.
This assignment does involve quite an amount of research and the staff want to support you in achieving the best result you can. Therefore the aim of the Planner is to get you started much earlier, and also develop your problem-solving skills and initiative in researching. Developing and refining these skills will not only assist you in your studies but will also be of great benefit in the workplace and in your career progression. Since the introduction the Planner student results both in the Planner and the unit overall have increased and the feedback has been positive. Business Report requirements:
Prepare a formal business report, containing the appropriate sub-headings (please see report format on page 7 for sub-headings to be used). Also use the marking grid on page 9 as a checklist of what to cover and sub-headings to use. Trimester 1, 2013 Page 4 MAA103 – Accounting for Decision Making In your final report submission you are required to specifically address the following: (a) 2 marks Introduction – In your own words provide a brief, non-financial, overview of both organisations, describe their business activities and the aim of your financial analysis (maximum 250 words). b) ? Profitability ? Efficiency and ? Financial stability – both short-term and long-term of both companies, using the ratios given and any other appropriate information. Use sub-headings for the above areas of discussion (please see report format for subheadings to be used). Under each area of discussion you should: 1. Identify and briefly define ratios of both companies over the years. 2. Compare ratios from one year to the other and between companies. 3. Give reasons as to why these ratios have changed over the years and why one company is better than the other. 4.
Discuss any other information not given in this assignment that would help your analysis. Your discussion must be an interpretation and analysis of results not merely a restatement of the ratio results. Analysis and Interpretation of ratios For both companies, review the financial ratios (as provided) for the 2011 and 2012 financial years on a consolidated basis. A summary of any additional ratio calculations for 2011/2012 years or prior years to 2011 should be included by way of Appendix, although results are best reported in a Table (report style) within the Ratio Interpretation section.
Your aim should be to guide the reader through your analysis in a professional report style manner. Use consolidated figures only. Interpret and compare the ratios by analyzing the potential factors and strategies driving the financial trends by referring to the notes to the financial statements and the financial press (for example, The Age, Australian Financial Review, The Australian, etc. ) or other documentation about Fantastic Holdings Ltd. and Super Retail Group Ltd. In your analysis specifically address profitability, operating efficiency and financial stability (as per the attached marking sheet).
Consider all factors you believe would be relevant to performance and future investment decisions such as customers, competitors, business strategy and markets. Ple Please appropriately reference all sources. Please number and label all tables and figures and make reference to the appropriate table or figure number in your discussion/analysis section of your report. Additional areas you may wish to investigate could include (but not be limited to) items such as what are the largest expenses and assets, profit margins and how, or why, do these compare or differ between these two companies and the industry sector.
Are properties leased or owned? Are the two years representative or comparable with earlier years? Are these potential investments suitable for all types of investors? Trimester 1, 2013 Page 5 10 marks In the ‘body of the report’ (as per point 5 in the attached Suggested Formal Case report structure) – analyse the: MAA103 – Accounting for Decision Making (c) 4 marks Limitations (1 mark) Identify and discuss any limitations (as per point 7 in the attached Suggested Formal Case Report Structure) to your analysis. At least 4 limitations required to be identified .
Conclusions and Recommendations (3 marks) Offer a definite recommendation (as per point 8 in the attached Suggested Formal Case Report Structure) to a shareholder on which company you think is a better investment option perhaps in the short term or longer term, including appropriate justification based on your analysis. Are these good investment options? Within your recommendation also consider the limitations of your analysis that the investor should consider in their decision. There WILL be additional information or other relevant ratios you need to calculate to give an informed recommendation.
You should incorporate your additional research into the appropriate discussion areas of your report, using additional sub-headings where necessary. (d) 4 marks Up to 4 marks will be awarded for evidence and use of relevant and appropriate research material throughout the report; this includes primarily the use of current financial press such as The Age, Australian Financial Review, calculation of additional ratios and other relevant and current sources. Please ensure all references are quoted and used in your report.
This is a business research assignment and students will be rewarded for evidence of wider reading and research of the companies and industry. You must include a correctly prepared list of references (as per point 9 in the attached Suggested Formal Case Report Structure). A penalty of up to 2 marks will be deducted for inappropriate format or inappropriate referencing. See the following website for assistance on how to prepare a reference list: www. deakin. edu. au/studentlife/academic_skills/undergraduate/handouts/reference. php PLEASE NOTE: When preparing the report, the following points should be followed: ? ? ? Use appropriate report format as per attached ‘Suggested Formal Case Report Structure’ attached. Use appropriate sub-headings as per report ‘Suggested Formal Case Report Structure’ attached. For each sub-heading make sure you address the relevant points as per instructions in this assignment. The financial statement discussion should be kept brief and to the point. However, it should not merely be a re-statement of the ratio results. It must be a brief ‘discussion’ of what the results tell you about each area that is being examined and how it relates to the recommendation to be made.
Attach appropriate ratio calculations as an appendix to the report. A reference list using an appropriate and recognised format must be included at the end of the report. The mark sheet attached gives you a clear indication of how the report will be marked. Page 6 ? ? ? Trimester 1, 2013 MAA103 – Accounting for Decision Making FORMAT OF REPORT Your answer to the final assignment must be presented as a formal business report. Whilst there are various formats for a formal business report that may be followed, we suggest using the following. Suggested Formal Case Report Structure 1.
Title page – appropriate title for the report, who it is for and your details 2. Executive summary (This is NOT an Introduction) – separate page Maximum of 1 paragraph, explaining what you have done as well as the significant findings and recommendations. 3. Table of contents (include page numbers) – separate page 4. Introduction (separate page) – refer part (a) ? A short summary of the situation and what analysis is about to be conducted ? Maximum 2 paragraphs 5. Body of the report containing your analysis, including appropriate sub-headings to address part (b) ? Profitability ?
Efficiency ? Financial Stability – short-term and long-term 6. Additional or Other information relevant to your report – part (b) (separate page) 7. Limitations – part (c) (separate page) 8. Recommendations – part (c) (separate page) 9. List of references – based on the ‘Guide to assignment writing and referencing booklet’ (also available on the MIBT PORTAL) or on the following guidelines: www. deakin. edu. au/studentlife/academicskills/undergraduate/handouts/reference. php 10. Appendices (attached to end of report) ? these contain material that is too bulky to include in the body (e. g. atio calculations, tables, diagrams), and ? material that is essential to explain a point that would distract the reader from the main message if included in the body of the report An additional resource on various aspects of academic study, including report writing, is available on the below site or from the library http://www. deakin. edu. au/studentlife/academicskills/undergraduate/index. php Your report must be single sided. Trimester 1, 2013 Page 7 MAA103 – Accounting for Decision Making CHECKLIST – SUMMARY OF REQUIREMENTS: Make sure your assignment consists of the following before submission: 1.
Submit via MIBT PORTAL Assignment Planner and Final Assignment. 2. Assignment Cover sheet as the front page to the hardcopy of your final assignment. This must include ALL names and student MIBT ID. numbers of group members. 3. Final assignment – Your formal business report analysing both companies. A HARD COPY OF YOUR ASSIGNMENT (ONE PER GROUP) MUST BE SUBMITTED FOR MARKING. ALL STUDENTS MUST SUBMIT ELECTRONICALLY FOR VERIFICATION AND BACK UP PURPOSES. Please include on your front title page ALL names and student numbers of group members. 4.
Appropriate final reference list (at least 6 references required to be used and listed in alphabetical order). The Harvard style should be used for referencing and citations. 5. ONE copy of the Assignment Mark Sheet (on page 9 of this assignment) as the last page. 6. The Mark Sheet must indicate ALL the names and student ID. numbers of each member of the group. 7. Where there are three group members, the report must reflect the work and effort of three. 8. Attach as an appendix a copy of your previously submitted Assignment Planner to your final group copy submission.
PLEASE NOTE: It is the hard copy of your submission that is marked – NOT the MIBT PORTAL electronic copy Trimester 1, 2013 Page 8 MAA103 – Accounting for Decision Making MAA103/MAAP103 Assignment Mark Sheet – Trimester 1, 2013 NAMES: ID No. : MARK COMMENT POSSIBLE REPORT Introduction & Appropriate Format Profitability Efficiency Financial Stability Short-term Financial Stability Long-term Limitations of Analysis Recommendation Evidence of wider reading and research Deductions: inappropriate referencing, Failure to submit Assignment Planner ACTUAL 4 2 2 2 1 3 4 Failure to submit Assignment Planner will incur a 2 mark penalty. ASSIGNMENT TOTAL General Comments: 20 NOTE: This assignment represents 20% of your assessment for this unit. Trimester 1, 2013 Page 9 MAA103 – Accounting for Decision Making MAA103/MAAP103 Assignment Planner – Trimester 1, 2013 STUDENT GROUP NAMES: (Assignment CAN NOT be completed with students from other accounting classes) ID No. : 1. 2. 3. Lecturer’s Name: Class Time/Day: SECTION B: DATE: BRIEF DETAILS OF HOW YOU INTEND TO PROCEED TO COMPLETE REPORT: NAME OF STUDENT(S) COMPLETING SECTION(S):
Trimester 1, 2013 Page 10 MAA103 – Accounting for Decision Making MAA103/MAAP103 Assignment Planner Cont. List 6 references that will be used in your research: NOTE: The references included in the planner may include a combination of electronic databases, texts, journals or other references, but does not include the company annual reports, websites or the prescribed textbook. The company annual reports, websites and prescribed textbook would need to be included in your final reference list attached to your report. This reference list may differ from your final reference list. 1. 2. 3. 4. 5.