Case Study: Accounting for Decision Making

BIZ201_Assess3_CrystalHotelCaseStudyPartAStudentWorkbook20190626.xlsx

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Statement of Profit or Loss

	Crystal Hotel Pty Ltd
	Statement of Profit or Loss
	For the period ended 30/06/2018
	Revenue
	Rooms Revenue	$4,006,920
	Food and Beverage Revenue	$936,497
	Functions	$960,326
	Other Revenue	$331,024
	Total Revenue	$6,234,767
	Cost of Sales
	Rooms Cost of Sales	$901,245
	Food and Beverage Cost of Sales	$956,354
	Other Cost of Sales	$134,636
	Total Cost of Sales (excluding personnel cost)	$1,992,235
	Gross Profit	$4,242,532
	Personnel Costs
	Rooms	$502,451
	Food and Beverage	$499,354
	Administrative and General	$303,274
	Sales and Marketing	$230,543
	Property Management and Maintenance	$180,245
	Total Personnel Costs	$1,715,867
	Unallocated Operating Costs
	Administrative and General	$502,452
	Information Systems	$7,065
	Sales and Marketing	$150,345
	Security	$46,004
	Transportation	$95,334
	Property Operations and Maintenance	$310,247
	Utilities	$125,354
	Total Undistributed Operating Costs	$1,236,801
	Operating Profit	$1,289,864
	Insurance Expense	$27,404
	Depreciation and Amortisation	$45,276
	Income Before Interest and Tax	$1,217,184
	Interest Expense	$29,787
	Income Before Income Taxes	$1,187,398
	Income Taxes	$492,554
	Net Profit	$694,843

&"Verdana,Italic"&9This Balance Sheet is intended as a GUIDE ONLY and DOES NOT constitute financial advice, please verify and discuss your financial statements with a qualified accountant, solicitor or financial advisor.

Statement of Financial Position

	Crystal Hotel Pty Ltd
	Statement of Financial Position
	at at 30/06/2018
	Current Assets
	Cash and Cash Equivalents	$864,214
	Accounts Receivable	$748,925
	Inventory	$260,989
	Pre-paid Expenses	$140,935
	Total Current Assets	$2,015,063
	Non Current Assets
	Property, Plant & Equipment	$2,978,677
	Intangible Assets	$781,764
	Vehicles	$156,168
	Other Non-current Assets	$148,338
	Total Non-Current Assets	$4,064,948
	Total Assets	$6,080,011
	Current Liabilities
	Bank Overdraft	$14,751
	Accounts Payable	$299,530
	Provisions	$170,210
	Other Current Liabilities	$545,694
	Total Current Liabilities	$1,030,185
	Non Current Liabilities
	Loans	$560,350
	Total Non Current Liabilities	$560,350
	Total Liabilities	$1,590,535
	Owner's Equity
	Investment Capital	$1,864,208
	Capital Reserve	$954,993
	Retained Earnings	$1,670,275
	Total Owner's Equity	$4,489,476
	Total Liabilities and Onwer's Equity	$6,080,011

Cumulative Statements of FP

Crystal Hotel Pty Ltd
Cumulative Statements of Financial Position
	2015	2016	2017	2018
Current Assets
Cash and Cash Equivalents	$842,946	$961,823	$605,192	$864,214
Accounts Receivable	$351,228	$486,315	$626,806	$748,925
Inventory	$149,137	$248,561	$297,193	$260,989
Pre-paid Expenses	$75,649	$84,943	$96,831	$140,935
Total Current Assets	$1,418,959	$1,781,642	$1,626,021	$2,015,063
Non Current Assets
Property, Plant & Equipment	$2,306,214	$2,528,838	$2,669,329	$2,978,677
Intangible Assets	$540,350	$732,715	$733,687	$781,764
Vehicles	$54,977	$84,295	$118,877	$156,168
Other Non-current Assets	$49,280	$96,723	$111,312	$148,338
Total Non-Current Assets	$2,950,821	$3,442,570	$3,633,205	$4,064,948
Total Assets	$4,369,780	$5,224,212	$5,259,227	$6,080,011
Current Liabilities
Bank Overdraft	$51,063	$56,169	$26,537	$14,751
Accounts Payable	$494,961	$372,842	$516,575	$299,530
Provisions	$253,965	$122,724	$144,814	$170,210
Other Current Liabilities	$384,729	$372,842	$430,119	$545,694
Total Current Liabilities	$1,184,717	$924,577	$1,118,044	$1,030,185
Non Current Liabilities
Loans	$540,350	$540,350	$540,350	$560,350
Total Non Current Liabilities	$540,350	$540,350	$540,350	$560,350
Total Liabilities	$1,725,067	$1,464,927	$1,658,394	$1,590,535
Owner's Equity
Investment Capital	$1,864,208	$1,864,208	$1,864,208	$1,864,208
Capital Reserve	$287,558	$530,624	$540,350	$954,993
Retained Earnings	$492,947	$1,364,454	$1,196,275	$1,670,275
Total Owner's Equity	$2,644,713	$3,759,285	$3,600,833	$4,489,476
Total Liabilities and Onwer's Equity	$4,369,780	$5,224,212	$5,259,227	$6,080,011

Vertical Analysis P&L

Crystal Hotel Pty Ltd		Vertical Analysis	Marking
Statement of Profit or Loss
For the period ended 30/06/2018
Revenue			Correct?	Mark Allocated
Rooms Revenue	$4,006,920	?	Yes Windows User: Lecturer: Insert Yes if correct, No if Incorrect. The marks will be calculated automatically.	0.40
Food and Beverage Revenue	$936,497	?	Yes	0.40
Functions	$960,326	?	Yes	0.40
Other Revenue	$331,024	?	Yes	0.40
Total Revenue	$6,234,767	?	Yes	0.20
Cost of Sales
Rooms Cost of Sales	$901,245	?	Yes	0.40
Food and Beverage Cost of Sales	$956,354	?	Yes	0.40
Other Cost of Sales	$134,636	?	Yes	0.40
Total Cost of Sales (excluding personnel cost)	$1,992,235	?	Yes	0.40
Gross Profit	$4,242,532	?	Yes	0.40
Personnel Costs
Rooms	$502,451	?	Yes	0.40
Food and Beverage	$499,354	?	Yes	0.40
Administrative and General	$303,274	?	Yes	0.40
Sales and Marketing	$230,543	?	Yes	0.40
Property Management and Maintenance	$180,245	?	Yes	0.40
Total Personnel Costs	$1,715,867	?	Yes	0.40
Unallocated Operating Costs
Administrative and General	$502,452	?	Yes	0.40
Information Systems	$7,065	?	Yes	0.40
Sales and Marketing	$150,345	?	Yes	0.40
Security	$46,004	?	Yes	0.40
Transportation	$95,334	?	Yes	0.40
Property Operations and Maintenance	$310,247	?	Yes	0.40
Utilities	$125,354	?	Yes	0.40
Total Undistributed Operating Costs	$1,236,801	?	Yes	0.40
Operating Profit	$1,289,864	?	Yes	0.40
Insurance Expense	$27,404	?	Yes	0.40
Depreciation and Amortisation	$45,276	?	Yes	0.40
Income Before Interest and Tax	$1,217,184	?	Yes	0.40
Interest Expense	$29,787	?	Yes	0.40
Income Before Income Taxes	$1,187,398	?	Yes	0.40
Income Taxes	$492,554	?	Yes	0.40
Net Profit	$694,843	?	Yes	0.40
			Total Marks	12.6

Vertical Analysis SOFP

Crystal Hotel Pty Ltd		Vertical Analysis	Marking
Statement of Financial Position
at at 30/06/2018
Current Assets			Correct?	Mark Allocated
Cash and Cash Equivalents	$864,214	?	Yes Windows User: Lecturer: Insert Yes if correct, No if incorrect. The marks will be calculated automatically.	0.40
Accounts Receivable	$748,925	?	Yes	0.40
Inventory	$260,989	?	Yes	0.40
Pre-paid Expenses	$140,935	?	Yes	0.40
Total Current Assets	$2,015,063	?	Yes	0.40
Non Current Assets
Property, Plant & Equipment	$2,978,677	?	Yes	0.40
Intangible Assets	$781,764	?	Yes	0.40
Vehicles	$156,168	?	Yes	0.40
Other Non-current Assets	$148,338	?	Yes	0.40
Total Non-Current Assets	$4,064,948	?	Yes	0.40
Total Assets	$6,080,011	?	Yes	0.20
Current Liabilities
Bank Overdraft	$14,751	?	Yes	0.40
Accounts Payable	$299,530	?	Yes	0.40
Provisions	$170,210	?	Yes	0.40
Other Current Liabilities	$545,694	?	Yes	0.40
Total Current Liabilities	$1,030,185	?	Yes	0.40
Non Current Liabilities
Loans	$560,350	?	Yes	0.40
Total Non Current Liabilities	$560,350	?	Yes	0.40
Total Liabilities	$1,590,535	?	Yes	0.40
Owner's Equity
Investment Capital	$1,864,208	?	Yes	0.40
Capital Reserve	$954,993	?	Yes	0.40
Retained Earnings	$1,670,275	?	Yes	0.40
Total Owner's Equity	$4,489,476	?	Yes	0.40
Total Liabilities and Onwer's Equity	$6,080,011	?	Yes	0.40
			Total Marks	9.4

Ratio Analysis

	Profitability Ratios	2018	Industry	Correct?	Mark Allocated
	Gross Profit Margin	?	81%	Yes Think Education: Lecturer: Insert Yes if correct, No if incorrect. The marks will be calculated automatically.	1.00
	Net Profit Margin	?	11%	Yes	1.00
	Return on Assets	?	8%	Yes	1.25
	Return on Equity	?	9%	Yes	1.25
	Efficiency Ratios
	Inventory Turnover	?	8.60	Yes	2.00
	Number of days Inventory Held	?		Yes	1.00
	Accounts Receivable Turnover	?		Yes	1.25
	Accounts Receivable Collection Period	?	35.00	Yes	1.00
	Liquidity Ratios
	Current ratio	?	3.20	Yes	1.00
	Quick Ratio	?	2.12	Yes	1.25
	Solvency Ratios
	Debt to Equity Ratio	?		Yes	1.00
	Debt Ratio	?		Yes	1.00
	Equity Ratio	?		Yes	1.00
	Interest Coverage	?		Yes	1.00
NOTE: Net Credit Sales for the period ended 30 June 2018 were $2530853				Total Marks	16