Case Study: Accounting for Decision Making
Kylin
BIZ201_Assess3_M3_CaseStudy20190626.pdf
BIZ201_Assessment 3 Brief_M3_Case Study Page 1 of 10
ASSESSMENT BRIEF
Subject Code and Title
BIZ201 Accounting for Decision Making
Assessment
Case Study Part A
Individual/Group
Individual
Length
1500 words
Learning Outcomes b) Apply relevant accounting concepts to simple
business scenarios. c) Interpret and analyse the information contained
in general purpose financial statements, to evaluate the overall financial position and performance of a business.
Submission
By 11:55 pm AEST/AEDT Sunday of Module 4 (Week 8)
Weighting
30%
Total Marks
100 marks
Context:
This assessment is aimed at consolidating knowledge from Modules 1-3. By prescribing this
assessment, you are able to reflect on the understanding of accounting concepts and be
able to apply them to business scenarios like given in this case study.
Instructions:
1. The case study below presents a business scenario. Answer questions in Part 1 and 2 at
the end of this case study.
2. Submit two files; Excel Workbook and the Business Report.
3. For calculation questions show all workings through appropriate Excel formulas. Copy
pasted numbers without appropriate Excel formulas will not be accepted.
4. Submit your assessment files using the following naming convention:
First Name_Last Name_BIZ201_Case_Study A_Assessment3_Workbook.xlsx
First Name_Last Name_BIZ201_Case_Study A_Assessment3_Report.doc
BIZ201_Assessment 3 Brief_M3_Case Study Page 2 of 10
Crystal Hotel Case Study
Crystal Hotel Pty Ltd is a privately owned 3.5 stars hotel located in Parramatta CBD in Sydney. The
Hotel consists of 160 rooms with maximum capacity of 350 guests, a restaurant with capacity of 150
guests, a function room with maximum capacity of 250 guests and a conference room with
maximum capacity of 200 guests. The average price per room per night is $150.
While the hotel is located in a very popular location and close proximity to a river and the city
centre, it is becoming quite outdated. The owners rely heavily on their corporate clientele. Clients
usually use the hotel for their expat employees. Due to long-term contracts, they pay on credit
with invoices being issued at the end of each month. The hotel is often faced with outstanding
invoices. The owners have so far tolerated it as it usually occurs with their long-term clients.
Additionally, to the accommodation services, they often use hotel facilities for their functions and
conferences.
The hotel is constantly having difficulties retaining a good quality staff as they always get junior
personnel, which once gaining experience will usually leave for better opportunities in hotels with
higher ratings. The biggest issue is to retain high quality personnel in the hotel restaurant, especially
a chef.
The owners would like to increase the hotel star rating by renovating or refurbishing the hotel and
improving their services. They are thinking about building a Wellness Centre on the rooftop of the
hotel, which would include a massage treatment room, gym, spa, sauna and an outdoor pool.
As new plans will require quite extensive capital investment, the owners would like to know where
they stand financially before making any major decisions. You have been appointed to analyse their
financial statements and to give them an insight on which areas should be improved and analysed
further.
You are expected to conduct the financial statement analysis in Excel workbook and then use your
findings in creating a business report to be submitted to the client.
BIZ201_Assessment 3 Brief_M3_Case Study Page 3 of 10
Required:
Part 1 – to be done in Excel Workbook
This Excel Workbook is available on Blackboard under assessment section. Download it, perform
calculations on it and submit it.
1. Vertical analysis of financial statements:
a. Conduct Vertical Analysis of Crystal Hotel’s Statement of Financial Position as at 30
June 2018 using the Vertical Analysis SOFP worksheet. Round your numerical
answers to two decimal places.
b. Conduct Vertical Analysis of Crystal Hotel’s Statement of Profit and Loss for the year
ended 30 June 2018 using Vertical Analysis P&L worksheet. Round your numerical
answers to two decimal places.
2. Conduct Ratio Analysis using Ratio Analysis worksheet. Round your numerical answers to
two decimal places.
Part 2 – to be included in the Business report
3. Using the Income Statement Vertical Analysis prepared in Excel workbook, conduct Income
Statement comparative analysis to the industry benchmarks included in Table 1 and Table 2
of the Appendix.
Comment on how the business is performing comparing to the industry.
Include comments on Revenue, Cost of sales (excluding personnel costs), Personnel costs,
unallocated Operating costs and Total costs proportions.
Make recommendations on areas that need improvements or further investigation, based
on the results of your comparative analysis.
4. Using the results of the Ratio Analysis in Excel workbook, comment on Profitability,
Efficiency, Liquidity and Solvency of the business. With reference to the industry data
provided, make recommendations where appropriate.
5. There are additional industry specific performance indicators and benchmarks that the hotel
could use when comparing itself to the industry. Conduct a research and recommend 3
additional industry specific benchmarks the hotel could use in their comparative analysis.
Include a brief explanation of each benchmark you are recommending including formula
where appropriate.
BIZ201_Assessment 3 Brief_M3_Case Study Page 4 of 10
Appendix – Industry Data
Table 1 Vertical Analysis of Statement of Profit and Loss based on Number of Rooms
BIZ201_Assessment 3 Brief_M3_Case Study Page 5 of 10
Appendix – Industry Data
Table 2 Vertical Analysis of Statement of Profit and Loss based on Average Room Price Range
BIZ201_Assessment3 Brief_M3_Case Study 20190626 Page 6 of 10
Learning Rubric: Assessment 3
Assessment Attributes
Fail (Unacceptable)
0 - 49
Pass (Functional)
50 - 64
Credit (Proficient)
65 - 74
Distinction (Advanced)
75 - 84
High Distinction (Exceptional)
85 - 100
Grade Description (Grading Scheme)
High Distinction is
Fail grade will be awarded if a student is unable to demonstrate satisfactory academic performance in the subject or has failed to complete required assessment points in accordance with the subject’s required assessment points.
Pass is awarded for work showing a satisfactory achievement of all learning outcomes and an adequate understanding of theory and application of skills. A consistent academic referencing system is used and sources are appropriately acknowledged.
Credit is awarded for work showing a more than satisfactory achievement of all learning outcomes and a more than adequate understanding of theory and application of skills. A consistent academic referencing system is used and sources are appropriately acknowledged.
Distinction is awarded for work of superior quality in achieving all learning outcomes and a superior integration and understanding of theory and application of skills. Evidence of in-depth research, reading, analysis and evaluation is demonstrated. A consistent academic referencing system is used and sources are appropriately acknowledged.
awarded for work of outstanding quality in achieving all learning outcomes together with outstanding integration and understanding of theory and application of skills. Evidence of in‐depth research, reading, analysis, original and creative thought is demonstrated. A consistent academic referencing system is used and sources are appropriately
acknowledged. Application of Vertical analysis of financial statements
SLO Addressed:
c) Interpret and analyse the information contained in general purpose financial
Demonstrates no application of vertical analysis of Balance Sheet and Income Statement. Excel formulas are not used for calculation.
Demonstrates limited application of vertical analysis of Balance Sheet and Income Statement. Few correct Excel formulas are used for calculation.
Demonstrates consistent application of vertical analysis of Balance Sheet and Income Statement. Not all Excel formulas used for calculation are correct.
Demonstrates an advanced application of vertical analysis of Balance Sheet and Income Statement. Most Excel formulas used for calculation are correct.
Consistently demonstrates an advanced application of vertical analysis of Balance Sheet and Income Statement. All Excel formulas used for calculation are correct.
BIZ201_Assessment3 Brief_M3_Case Study 20190626 Page 7 of 10
statements, to evaluate the overall financial position and performance of a business.
22%
Calculation of appropriate financial ratios
SLO Addressed:
c) Interpret and
analyse the information contained in general purpose financial statements, to evaluate the overall financial position and performance of a business.
16%
Demonstrates no evidence of use excel formulas and relevant worksheets to calculate appropriate ratios.
Demonstrates limited evidence of use excel formulas and relevant worksheets to calculate appropriate ratios.
Demonstrates consistent evidence of use excel formulas and relevant worksheets to calculate appropriate ratios.
Demonstrates an advanced evidence of use excel formulas and relevant worksheets to calculate appropriate ratios.
Consistently demonstrates an advanced evidence of use excel formulas and relevant worksheets to calculate appropriate ratios.
Comparison of Vertical analysis of financial statements calculations with industry values including comments on various types of costs
No understanding of use Vertical Analysis of financial statements calculations prepared in Excel for comparison to industry values provided in the Appendix.
Limited understanding of use Vertical Analysis of financial statements calculations prepared in Excel for comparison to industry values provided in the Appendix.
Demonstrates consistent understanding of use Vertical Analysis of financial statements calculations prepared in Excel for comparison to industry values provided in the Appendix.
Well demonstrated understanding of use Vertical Analysis of financial statements calculations prepared in Excel for comparison to industry values provided in the
Excellent demonstrated understanding of use Vertical Analysis of financial statements calculations prepared in Excel for comparison to industry values provided in the
BIZ201_Assessment3 Brief_M3_Case Study 20190626 Page 8 of 10
SLO addressed:
b) Apply relevant accounting concepts to simple business scenarios.
c) Interpret and analyse the information contained in general purpose financial statements, to evaluate the overall financial position and performance of a business.
23%
No comments on Revenue, Cost of Sales, Personnel Costs, Unallocated Operating Costs and Total Costs proportions.
Limited comments on Revenue, Cost of Sales, Personnel Costs, Unallocated Operating Costs and Total Costs proportions.
Some comments on Revenue, Cost of Sales, Personnel Costs, Unallocated Operating Costs and Total Costs proportions.
Appendix. Good comments on Revenue, Cost of Sales, Personnel Costs, Unallocated Operating Costs and Total Costs proportions.
Appendix. Well commented on Revenue, Cost of Sales, Personnel Costs, Unallocated Operating Costs and Total Costs proportions.
Understanding of Profitability, Efficiency, Liquidity and Solvency of the business using ratio analysis with reference to industry data
SLO addressed:
b) Apply relevant accounting concepts to simple business scenarios.
c) Interpret and
No use of ratio analysis to demonstrate the understanding of Profitability, Efficiency, Liquidity and Solvency of the business. No reference to industry data is provided.
Limited use of ratio analysis to demonstrate the understanding of Profitability, Efficiency, Liquidity and Solvency of the business. Limited comments were made with reference to industry data provided.
Well-developed use of ratio analysis to demonstrate the understanding of Profitability, Efficiency, Liquidity and Solvency of the business. Some comments are made with reference to industry data provided.
Thoroughly developed understanding of Profitability, Efficiency, Liquidity and Solvency of the business by using ratio analysis. Good comments were made with reference to industry data provided.
Highly developed understanding of Profitability, Efficiency, Liquidity and Solvency of the business by using ratio analysis. Recommendations are clearly justified based on reference to industry data provided.
BIZ201_Assessment3 Brief_M3_Case Study 20190626 Page 9 of 10
analyse the information contained in general purpose financial statements, to evaluate the overall financial position and performance of a business.
23%
Application of own research to further develop comparative analysis of hotel
SLO addressed:
b) Apply relevant accounting concepts to simple business scenarios.
c) Interpret and analyse the information contained in general purpose financial statements, to evaluate the overall financial position and
No evidence of own research to provide examples of three industry specific benchmarks the hotel could use for further comparative analysis. No explanation of any benchmark including formulas is provided.
Limited evidence of own research to provide examples of three industry specific benchmarks the hotel could use for further comparative analysis. Limited explanation of any benchmark including formulas is provided.
Consistent evidence of own research to provide examples of three industry specific benchmarks the hotel could use for further comparative analysis. Consistent explanation of each benchmark including formulas is provided.
Demonstrates an advanced evidence of own research to provide examples of three industry specific benchmarks the hotel could use for further comparative analysis. Well-developed explanation of each benchmark including formulas is provided.
Highly sophisticated evidence of own research to provide examples of three industry specific benchmarks the hotel could use for further comparative analysis. Thoroughly developed explanation of each benchmark including formulas is provided.
BIZ201_Assessment3 Brief_M3_Case Study 20190626 Page 10 of 10
performance of a business.
10%
Correct citation of key resources and evidence
Overall structure, appearance and referencing of the report are assessed
6%
Demonstrates inconsistent use of good quality, credible and relevant resources to support and develop ideas.
Demonstrates use of credible and relevant resources to support and develop ideas, but these are not always explicit or well developed.
Demonstrates use of high quality, credible and relevant resources to support and develop ideas.
Demonstrates use of good quality, credible and relevant resources to support and develop arguments and statements. Shows evidence of wide scope within the organisation for sourcing evidence.
Demonstrates use of high- quality, credible and relevant resources to support and develop arguments and position statements. Shows evidence of wide scope within and without the organisation for sourcing evidence.
