Identify issues that led to the corporations collapse

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Reference no: EM131650722

Financial Accounting Assignment

PURPOSE - The purpose of this assignment is to provide hands-on experience to Accounting 1/ BACC105 students on financial analysis using real-life data. It gives students the opportunity to demonstrate, through an extended exercise, their ability to apply their accounting knowledge and analytical skills to a real-world setting. It also provides an opportunity to develop students' interpersonal skills in a work environment.

ASSIGNMENT QUESTIONS - Answer both Part A and Part B as outlined below. 

Part A - Use the 'ABC Learning' and 'One Tel' documentaries to identify:

  • issues that led to the corporations collapse
  • financial statement (s) and/or other sources of information that contain any earlier signs of the businesses' failure
  • financial ratios that can be used to detect early signs of these issues

Summarise your findings in the table attached, recording the first issues that both companies had in common followed by the issues unique for each company. Use a 'bullet point' format and record one issue per line.

In 3-5 lines, provide your recommendations on how to avoid these bankruptcies.

Part B (Financial Statement Analysis)

Assume that you are a financial adviser and a client has approached you seeking your advice as to whether they should place their money (e.g. $10,000) in to a long-term bank deposit or invest it in one of the selected companies. Discuss potential risks and returns related to the above options using:

1. Relevant data provided by a bank of your choice.

2. The 2016 and 2017 annual reports of two listed companies of your choice. Conduct a financial analysis of both listed companies. You should evaluate these entities' profitability, liquidity, financial stability and attractiveness as an investment. Appropriate ratios (rounded to four decimal places) should be calculated to enable a complete assessment of the companies (use Excel tables!!!). The report should contain a discussion and analysis of the ratios calculated. The workings and calculations for all the ratios must be included in the report and should be presented in an appendix. You may use additional resources for answering this part. These resources must be referenced in your report.

All questions relate to the financial figures of the consolidated entities. Please note, you are neither required to, nor expected to, print out the entire annual reports. These are lengthy documents!

Your report should contain the following sections, in the order given:

1. Assignment cover sheet and Team Contribution Declaration

I. Part A (Analytical Summary of the Corporate Collapse Study)

II. Part B

2. Title page 

3. Table of contents

4. Introduction

5. The body:

5.1. financial analysis of the entities' profitability

5.2. financial analysis of the entities' liquidity

5.3. financial analysis of the entities' efficiency and solvency 

5.4. financial analysis of the entities' attractiveness as an investment

6. Conclusions

7. Recommendations

8. List of references

9.  Appendices

Attachment:- Assignment Files.rar

Reference no: EM131650722

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Reviews

len1650722

9/20/2017 5:17:42 AM

Australian Companies should be selected and both the companies should be Profitable. All questions relate to the financial figures of the consolidated entities. Please note, you are neither required to, nor expected to, print out the entire annual reports. These are lengthy documents! Part of the purpose of this task is for you to enhance your teamwork skills. These skills will become invaluable to you not only within MP, but also in your professional career. You are encouraged to spend time at the beginning of the task negotiating participation expectations, deadlines and meeting times. Your team is therefore required to complete the Team Contribution Declaration2 at the completion of the task, and submit it with your assignment.

len1650722

9/20/2017 5:17:36 AM

Students are required to work as a group. Each group must have 2-3 students. Each group will be required to hand in one report and prepare one in-class presentation. It is the responsibility of students to organize themselves into groups of 2-3 students and ensure that contact details of each student in the group have been given to all group members. Assignments submitted individually without the lecturer’s prior written permission will be heavily penalised.

len1650722

9/20/2017 5:17:29 AM

The group assignment must be word processed and presented in an appropriate report format. The report’s technical content, format, clarity of exposition, language usage and overall presentation quality will be assessed. For example, marks will be deducted for poorly presented assignments and for grammatical/spelling errors. Each assignment should comprise one copy of the group’s written report, Accounting 1/ BACC105 group Assignment Cover Sheet.

len1650722

9/20/2017 5:17:22 AM

The report should be printed on A4-size paper with double spacing and the length of the text (excluding appendix, references (if any) and coversheet and declaration page) must not exceed 1200 words (for Part A and B together). All assignments must be submitted as a hardcopy with an assignment cover sheet attached or as an electronic file with an electronic cover sheet (please refer to your subject coordinator for actual requirements). The assignment cover sheets are available on your subject’s Moodle site or from the Course Administrator. Submit hardcopy assignments and cover sheets directly to the Course Administrator in PE332. Upon submission, you will be issued with a receipt. For group assignments, all group members must submit individual assignment cover sheets with the group assignment. Under no circumstances must you submit your assignment via email or to your teacher unless otherwise instructed. Assignments received by fax or email will NOT be accepted.

len1650722

9/20/2017 5:17:16 AM

Assignments submitted without clear indication of student names and numbers will not be assessed. Each group member will receive their marks according to the agreed percentage of their contribution (as determined by the team). Any dishonest assignments will be dealt with according to MP rules and regulations. Dishonest assignment practices include deliberate copying or attempting to copy the work of other students, submitting the work of another as your own, and plagiarism. Failure to follow instructions of this assignment will attract appropriate penalties.

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