ACCT2213/2189 Accounting in organisations and Society

Assignment - Melbourne semester 2 2019

A client wants to invest a substantial amount of money in either Qantas Ltd or a new competitor a listed company OZ Spirit Ltd which is same Industry as Qantas. They ask you to appraise each company using key data and provide them with a recommendation. You may consider both financial and non-financial information in making this decision. Write your conclusions in report format.

Start by accessing the annual report on https://investor.qantas.com and pay attention to the information provided in the financial statements as you will find a lot of useful information in them that may help with some of the questions.

Write in report format using the following headings:

Word limit :1500 words

1. Cover page, table of contents, referencing, Executive summary and overall presentation of assignment.
2. “Corporate Governance is growing focus for companies in Australia”. Define corporate governance. In your answer identify those responsible for corporate governance and what their role is for corporate governance in the corporation?
3.  Identify and explain Qantas Environmental sustainability from Qantas Environment sustainability report (Write a brief report and comment on each element of Qantas’s environment sustainable core elements programs which shows their progress of reducing overall impact on environment). Comment on how important you believe environmental and social performance of a company is when potential investor analyse a company?

4.  Locate the financial statements and complete the table below.

(Use the formula sheet provided to prepare your ratio solutions, this ensures that you can maximise your results. Ratios taken from other sources may use different numerators or denominators. Use the consolidated figures from financial statements in the Annual Report to calculate the following ratios for the years 2017 and 2018. (Show the ratios to two decimal places.)

Complete this table for Qantas Ltd

Now examine the same information for OZ Spirit Ltd

5. Looking at the financial reports, why the numbers are rounded the way they are?

6. Using your knowledge, what are sources of short term finance? List four benefits of offering goods and services on credit?
7. Examine the ratios from both tables from Q.4 (Qantas Ltd and Oz spirit Ltd), write a brief report by examining the Profitability, Asset Efficiency, Capital structure, Market performance and working capital ratios of both companies, highlighting your understanding by explaining each group of ratios. Provide your recommendations to a potential investor as to the preferred company for them to invest in (You may include both financial and non-financial criteria of the company).  Provide a brief conclusion of your report.
8.  Now that you have a knowledge of analysing financial statements show your understanding by doing micro credential “Managing Money

Ratio formulas for Qantas assignment  2/2019