Recent Question/Assignment

Individual Assignment
20 marks total
This assignment will assess your Ethical Behaviour (5 marks) and
Creative Problem Solving (15 marks) Graduate Capabilities
General information and requirements
This is an individual assignment due in on 19th May 2019, by 11.55pm.
Assignment Length
Each question provides a guide as to the approximate word length of each answer. It is recommended you are close to these limits, but you do not need to achieve them exactly.
Please ensure your overall assignment is +/- 10% of the total word limit. Assignments that vary significantly from these guidelines will be marked down.
All submissions must be typed in a minimum 11 font, with 1.5 line spacing using WORD and submitted via the Turnitin link on LMS.
All submissions will be reviewed by a program called “Turnitin” and this will identify instances of plagiarism (copying). This is a very serious offence and can result in you receiving no marks for the assessment task.
Please ensure if you have copied information you use quotation marks and appropriate referencing.
If you reword someone else’s work you still need to refer to the author’s in your sentence. For example
Hines (1991) discusses how – whilst this is not a quote you need to reference the idea.
Refer to the “Assignment Presentation Guide” available under the “Assignment” tab for guidance.
This assignment requires you to analyse data. If you copy financial reports from the internet it will be obvious and no marks will be awarded, even if correctly referenced. The purpose of the assignment is to develop your analytical skills which are not those of an investment advisor. A small amount of referenced information will be acceptable.
Late Assignment Penalty
“The standard penalty for late submission of assessment tasks is 5% of the marks for that task for each delay in submission of a day or partial day up to a maximum of five (5) working days after the due date.”

Assignments must be presented in accordance with the “Assignment Presentation Guide” available
under the “Assignment” tab. (2 mark)
Question 1 (5 marks)
You run a company that sells dangerous chemicals but you are finding that it is a very competitive industry in which to work due to the costs of disposing of chemicals that can no longer be sold.
The warehouse is located near a river that flows into the local water supply reservoir where many of the locals enjoy swimming during the summer months. There have been many unexplained serious illnesses from people who have been swimming in the reservoir. A couple of teenagers who were exploring the river area stumbled across a number of containers marked as poisonous and they called the EPA (Environmental Protection Authority) who conducted an audit of the area.
One of your particularly dangerous chemicals had not been sold for a long time as it had been linked to cancer. Whilst it was written down to zero in your accounting records you had not been able to dispose of it due to its toxicity as this would have cost your business a significant amount that you could not afford and still achieve your desired profit.
Through a review of your stock records it can be seen that the inventory was slowly decreasing every six months despite there being no market for the goods. Further investigation revealed that a couple of your employees had been directed to empty a barrel every so often into the river thinking it would dissipate and cause no impacts and would save you the expensive disposal fees. Unfortunately, they left the empty barrels covered in shrubs and the illnesses that people had suffered, some of which could leave ongoing health issues, were directly traced to your business. It is currently unknown what the legal consequences and compensation will be to those parties injured by your company’s actions however they are liable to be substantial given the type of chemical and its potential consequences.
Given the resulting consequences, do you think reducing nature to a number is beneficial to the environment and accounting? Discuss giving consideration to at least 2 cases and relating them to your business. Your answer needs to be in your own words and correctly referenced to receive full
marks. (500 words)

Question 2 (4 marks)
You have been provided with the unadjusted and adjusted trial balance for Veterinary Services Ltd as
of 30 June 2018. These reports are after trading for up to the year ended 30 June 2018.
Veterinary Services Ltd
Trial balance
as at 30 June 2018
Unadjusted Adjusted
No Account Name Dr ($) Cr ($) Dr ($) Cr ($)
100 Cash 43,074 43,074
110 Accounts Receivable 78,317 84,190
130 Office Supplies 32,894 19,580
140 Prepaid Insurance 13,118 9,789
150 Surgery Equipment 294,951 294,951
151 Less Accumulated Depreciation - Surgery Equipment 109,644 137,055
200 Accounts Payable 19,580 19,580
220 Interest Payable 588
230 Revenue Received in Advance 87,411 81,929
240 Salaries Payable 5,090
250 Bank Loan (10 years term) 19,580 19,580
300 Share Capital 78,317 78,317
310 Retained Earnings 21,537 21,537
311 Dividends 46,989 46,989
400 Service Revenue 229,467 240,822
500 Salaries Expense 39,159 44,249
505 Insurance Expense 3,329
510 Interest Expense 1,371 1,959
520 Depreciation Expense 27,411
530 Office Supplies Expense 13,314
540 Rent Expense 15,663 15,663
565,536 565,536 604,498 604,498

a) Record the unadjusted opening balance of each account in the correct T–account before recording adjusting entries.
b) Record the adjusting entries in the General Journal using the below format:
Veterinary Services Ltd
General Journal
c) Record the adjusting entries in the correct T-accounts.
d) Balance the T-accounts. (Only use one set of T-accounts for parts a, c and d).
e) Prepare an Income Statement, Statement of Changes in Owners’ Equity and a classified Statement of Financial Position (Balance Sheet) as at 30 June 2018.
f) Journalise the post-closing entries required to finalise the end of financial year.
g) Briefly explain the purpose of the post-closing entries.
NOTE: to maximise your mark you must include correct titles, narrations, dates etc. This is an assignment, not under exam conditions, therefore attention to detail is expected.

You need to follow the “Assignment Presentation Guide – Company Analysis Guide” available under the “Assignment” tab.
Select a company that is not a Bank/Financial institution from the Library database and download the required financial information.
Please note: do not select a Bank or Financial institution as these companies have minimum liquidity ratios under law and are not as suitable for this activity.
a) Briefly explain the industry the company operates within and any key regulations to which they
must adhere. (100 words)
b) Using the downloaded data, complete a Horizontal Analysis of the Profit and Loss, Balance Sheet, Cash Flow and Ratios for 2017 and 2018. Set the $ movement to “no decimal places” and the % movement to “2 decimal places” for the statements. When analysing the ratios please use 2 decimal places for both the $ and % movements.
c) Write a brief report, using the horizontal analysis data, individually analysing the Profit and Loss, Balance Sheet and Cash Flow Statement. This is to be in your own words and not a report copied from a financial advisor on the internet. Marks will be significantly deducted if it is not in your own words and work. It is not acceptable to simply state one number is bigger than the other and therefore it is better. You need to explain the importance of the number and why it is
better/worse. (200 words)
d) Select a minimum of ten ratios, ensuring you include a range of liquidity, profitability and solvency ratios and analyse the company. Where possible use the ratios we have covered in class. As in part c above it is not acceptable to simply state one number is bigger than the other and therefore it is better. You need to explain the importance of the number and why it is better/worse.
(350 words)
Please note only refer to those ratios that are provided on the “ratios” tab, do not attempt to calculate them yourself.
e) Draw an overall conclusion as to whether you would invest in the company and why? (150 words)
f) Ensure you include a screen copy of each of the four tabs with your horizontal analysis within your report. Where you include them is up to you based on your report presentation (could be in an appendix).
Remember: You need to upload 1 document with all the assignment answers structured in a Business Report format. Please follow the presentation guide and save your completed assignment as a .pdf document to ensure your layout is retained.