Reference no: EM132352641 , Length: 3 pages
Task 1 - Aussi Cossi Case Study/Project
Below is a business profile for Aussi Cossi:
Aussi Cossi is an Australian small business operating in the retail / wholesale clothing trade. It is structured as a sole proprietor.
Required:
Question 1. What evidence is available to indicate that Andrea Cossi is currently following a predetermined strategic plan?
Question 2. What progress towards planned goals do the accounting records for the year ending 30 June 20AC and 30 June 20AD reflect?
Question 3. What indications are present that Andrea is on track "to establish a high profile wholesale and retail outlet and a design studio"?
*Question 4. Review the financial records of Aussi Cossi for the years ended 30 June, 20AC and 30 June, 20AD.
*Question 5. List further evidence of progress towards "a high profile wholesale and retail outlet and a design studio".
Question 6. Prepare management reports for Andrea to support her in managerial decision-making.
It appears the success of the opening celebrations in May has challenged the assumption that May/June sales would be average for other months. Therefore, in predicting future trends the results of 20AB should be left out of the calculations.
Question 7. With 20AC as the base year calculate Sales, Other Revenue and Net Profit for the years 20AE and 20AF based on the assumption that the trend from 20AC to 20AD will continue into 20AE and 20AF.
Question 8. Record your calculations in the following tables:
a) Trend Analysis in percentages
|
20AF
|
20AE
|
20AD
|
20AC
|
Sales
|
|
|
119
|
100
|
Other Revenue
|
|
|
136
|
100
|
Net Profit
|
|
|
75
|
100
|
b) Trend Analysis in dollars
|
20AF
|
20AE
|
20AD
|
20AC
|
Sales
|
|
|
508,000
|
426,000
|
Other Revenue
|
|
|
87,700
|
64,600
|
Net Profit
|
|
|
81,734
|
108,559
|
Overall Performance Measurements
Question 9. Evaluate the performance of Aussi Cossi in 20AD by calculating the following ratios: Efficiency
o Fixed Asset Turnover
o Inventory Turnover
o Debtors Collection Period Effectiveness
o Return on Revenue
o Return on Assets
o Return on Equity
*Question 10. using the Balanced Scorecard approach with the limited information available on the business site, evaluate the performance of Aussi Cossi during the year ended 30 June, AD.
*Question 11. Which of the four perspectives are you unable to evaluate? What additional information do you need to conduct an accurate and meaningful evaluation?
*Question 12. Insert your evaluation and recommendations for improved reporting in each of the four perspectives in a brief report to Andrea.
Write a brief report of your findings, review and analysis. Include a completed Template for Business Evaluation as attached following.
Note: Need only Questions 4, 5, 10 , 11 and 12.
For question 10 it's basically just the vertical and horizontal analysis.
Attachment:- Evaluate business performance.rar