Case study report (NO more than 1500 word)

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Bachelor of Tourism and Hospitality Management

AFA1105 ACCOUNTING FOR MANAGEMENT 2020 Semester 1

Assessment Task 3: Individual Assignment

Due date: Week 9

The assignment must be typewritten in font 12-size and line spacing of at least 1.15. A soft

copy is to be submitted electronically through LMS by the due date and time.

You are not expected to write more than 1,500 words for this assignment.

Marks Allocation:

The assignment will be marked out of 50 marks as allocated against the tasks below.

30% of your assignment score goes into your overall marks for this unit.

AFA1105 ACCOUNTING FOR MANAGEMENT (2020 Semester 1)

Student ID:

First Name:

Last Name:

TASK:

Download from LMS a copy of CROWN RESORTS LIMITED (the Company) annual

reports for the financial years 2019, 2018, 2017, 2016 and write a report of the Company

under the following sections.

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Use the below Format:

A) EXECUTIVE SUMMARY (5 marks. Approximately 200 words)

This section should be written up after your report has been written. It should give a

summary of your main findings about CROWN RESORTS LIMITED in terms of its

Profitability, Liquidity, Asset Efficiency, Capital Structure and Market Performance

over these years

B) COMPANY OVERVIEW (5 marks. Approximately 200 words)

This section should give the reader a broad sense of the Company’s operations (for example

what its main operations are, the number of locations, the regions they operate in, the

industry and competitors etc).

Such information is easily available from the internet and from the Directors’ Report in the

2019 annual report. Please reference your sources.

C) Analysis (40 marks. Approximately 1000 words)

1. Trend analysis

Using a trend analysis and the 2016 year as the base year, calculate the trend for Total

revenue and net profit after tax up to including the 2019 financial year.

Graph the trends from your findings from the 2016 year and up to and including the

2019 financial year. (10 Marks)

2. Vertical analysis Using a Vertical

a. Calculate each item in the 2019 profit and loss, with revenues at the base

index of 100 (7.5 marks)

b. Calculate each item in the 2019 balance sheet as a percentage of assets and

liabilities. (7.5 marks)

3. Ratio analysis (15 marks)

From the Company’s 2019 and 2018 financial statements and notes to financial statements,

calculate the following ratios based on what you were taught. Explain what the ratios

mean in general and comment specifically on what they tell about the Company’s

performance. Examine and explain how the ratios are trending and comment/explain if the

trend is favourable or not.

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Note:

Use Profit after Income Tax Expense and Sales Revenue, Total Revenue, Total Equity

and Total Assets in the Statement of Financial Position.

2019 2018

Return on Equity

(ROE) Net Profit After Tax / Average Equity (%)

Return on Assets

(ROA)

Net Profit After Tax / Average Assets (%)

Net Profit Margin Net Profit After Tax / Total Revenue (%)

Calculate Current Ratio and Quick Asset Ratio for the years 2019 and 2018. Show it in a

table as in the previous sections and comment on the Company’s liquidity position.

Note:

Use Total Current Assets and Total Current Liabilities in the Statement of Financial

Position.

2019 2018

Current

Ratio

Current Assets/Current Liabilities

Quick

Ratio

(Current Assets – Prepayment –

Inventory)/Current Liabilities

D) Conclusion (5 marks. Approximately 100 words)

This section sums up the key points of your discussion and summarise the key findings,

outcomes or information in your report.