115020 Accounting Fundamentals Assessment Learning outcomes Describe the fundamental accounting concepts that are applied in the preparation of financial statements. Explain the main types of business structures, a sole trader, a partnership and a company and describe the advantages and disadvantages of each type of structure. Undertake basic accounting activities in a competent manner. Perform analytical evaluations using data such as basic financial statement analysis, break-even analyses, future value of money, investment evaluations, and payback periods. Weighting:
40%(comprised of 2 sections:Part 1(10%)+Part 2 (30%))
Length:
800 words (Part 2 only)
Task Description:
Obtain a copy of the two most recent Annual Reports of EITHER The Warehouse Group OR Hallenstein Glasson Holdings Limited.Complete a financial statement analysis for your chosen company and prepare an analysis based on the questions below.
(Alternatively,your teacher may provide you any two public listed companies’Annual Reports in PDF format,downloadable from Stream).
The Warehouse Group Limited WHS–NZX,New Zealand‘s Exchange
Hallenstein Glasson Holdings Limited HLG-NZX,New Zealand’s Exchange
Part 1(10%Weighting)
For your chosen company,calculate the following ratios for the 2 most recent years,following these steps:
1.List relevant data as a balance sheet,separating current and non-current assets and liabilities.
2.Show your ratios in a table with the formula used for calculations (NOTE:For some companies,it may not be possible to complete all of these calculations,but a minimum of 5 ratios from the following list should be provided)
The possible ratios to be calculated are: Liquidity Ratios:
Current ratio
Quick ratio
Profitability Ratios:
Gross profit margin
Net profit margin
Return on assets
Return on ordinary shareholders’equity
Solvency Ratio:
Debt to equity
Part 2(30%weighting)
Use the above ratios to carry out a ratio analysis of the company in the following areas and make a recommendation of whether the company would be a good investment based on your analysis.This part of the assessment should be written in the form of an 800 word report consisting of the following sections (NOTE:Depending on the ratios which were calculated in Part 1,your report may have fewer sections than this):
Introduction Liquidity Analysis Profitability Analysis Long-term solvency Analysis Final Recommendations-This should be a summary of your comments on the above analyses and a recommendation of whether to invest in this company or not. Learning
Outcomes for this Task:
LO4 Perform. analytical evaluations using data such as basic financial
statement analysis,break-even analyses,future value of money, investment evaluations,and payback periods.
Formatting:
All assignments should be word processed,have a title and page numbers. Font size should be 12,with 1.5 line spacing.Write your name,student number,and teacher’s name clearly on each page.Your submission must be in .doc format (i.e.not a PDF).
Draft:
You must submit a draft prior to submitting the final version for assessment at a time specified by your teacher(s).
You will be expected to take any feedback of your draft into account and put these suggestions into action on your final submission.
Assessment Criteria:
To see the details of the assessment criteria,please see end of this document
Academic Misconduct:
Any form. of academic misconduct is taken very seriously.
Work found to be plagiarised,ghost–written,collaborated on will be
penalised.Depending on the severity of the misconduct,a mark of zero
may be given for the assessment.Please see your teacher for guidance on avoiding academic misconduct.
Submission:
Both the draft and the final writing is to be submitted via your class Stream page via Turnitin.If you are unsure of how to do this,please ask to your teacher(s)before the due date.
Marks will be awarded for submissions that are made on time.You will not receive these marks if your assessment is submitted late.
Special
Consideration:
lf you are unwell or there is another compelling or compassionate reason that affects your assessment or your ability to submit it on time,you may apply for special consideration.