7/23/2019 365000 WK7_workshop Worksheet(1)

1/10

Auckland University of Technology 365000 Accounting for Decision Making

Week Seven Workshop WorksheetThe balance sheet

Real-life case study: Balance sheet useSmart Tiles foors (ST) is a leading amily business that specialises in themanuacturing and wholesale distribution o foor tile products. Over the past

two years Smart Tiles has experienced dicult operating conditions. Tim thecompany accountant has prepared the income statement and balance sheetor the prior two years or a management meeting. The owners o Smart Tileshave as!ed Tim to evaluate the "nancial statements and prepare an evaluationo operating capability to present to senior management.

1

7/23/2019 365000 WK7_workshop Worksheet(1)

2/10

Auckland University of Technology 365000 Accounting for Decision Making

Current Ratio = Total Current Assets/Total Current iabilities!#$%& ' #%*+,%*-#-* ' %.+%#$%/ ' #%$*+%,%-*$#* ' %.-+

"uick Ratio = #Total Current Assets $ %nventory&/Total Currentiabilities!#$%& ' (#%*+ 0 %*+##$),%*-#-* ' $.*#$%/ ' (#%$*+% 0 %#%%%%),%-*$#* ' $.*%

'ebt Ratio = Total iabilities/Total Assets#$%& ' -*#$-*,1-1# ' $.+#$%/ ' #+*#*$,#+1$# ' $.

3

7/23/2019 365000 WK7_workshop Worksheet(1)

3/10

Auckland University of Technology 365000 Accounting for Decision Making

Re(uired:'iscuss )hat the i*plications of the S*art Tiles ratios are forthe business!Discuss each ratio in turn:+! Current ratio

,! "uick ratio

! 'ebt ratio

5

7/23/2019 365000 WK7_workshop Worksheet(1)

4/10

Auckland University of Technology 365000 Accounting for Decision Making

Report $ Balance Sheet. i(uidity/Activity evera0e

Financial ProfileActual

2014

Actual

2013

Actual

2012

Actual

2011

Actual

2010BALANCE SHEET $000

Cash and Deposits

Debtors

Inventory

Other current assets

Total Current Assets

Property, plant & equipment

Investments

Other non-current assets

Total Non-current Assets

Total Assets

Current Liabilities CL!

Non-current Liabilities

Total Lia"ilities

Equity

eserves

S#are#olers% E&uit'

Other Equity !unds

Total E&uit'

Total E&uit' ( Lia"ilities

Statistical )easuresActual20141

Actual2013

Actual2012

Actual2011

Actual2010

PA*T +, F+NANC+ALSTATE)ENTS T*ENS

B. Li&uiit' / Actiit'Inventory "urnover#if applicable$

Current atio

%uic 'ssets atio

C. Leerae aa earin!(hareholders) Equity *

E+I" Interest paid#aa Interest Cover$

1"he most recent year ill be either ./01 or ./02 dependin3 on your balance date4

7

7/23/2019 365000 WK7_workshop Worksheet(1)

5/10

Auckland University of Technology 365000 Accounting for Decision Making

Report structure

Report Title pa0e (not in word count)5 /ou *ust utilise readand si0ntheTitle pa0e in the template.5 Type 2ull 3ame o the 4ompany5 5nter your6 name 78 and wor!shop stream number5 9ead the Statement o :cademic ;onesty5 Then sign the Statement o :cademic ;onesty and date it as an

ac!nowledgement that you con"rm all the statements.

State*ent of Acade*ic 1onesty5 This assessment has been written by me and represents my own wor!.5 This wor! has not been previously submitted.5 :ll sourced inormation has been appropriately ac!nowledged and :

7/23/2019 365000 WK7_workshop Worksheet(1)

6/10

Auckland University of Technology 365000 Accounting for Decision Making

%. 4omplete :ppendix : 0 Share mar!et actors. 4alculate one set ratio.#. s share *arket data ratios available on the567 Co*pany Research database.

11

7/23/2019 365000 WK7_workshop Worksheet(1)

7/10

Auckland University of Technology 365000 Accounting for Decision Making

2art % $ Buy / 5ot buy 'ecision $ 'ecision-*akin05 : conclusion as to your buy,not buy decision in terms o your hypothetical

audience of recent i**i0rantsto 3ew Eealand.5 This must include a decisionas to whether the shares are best suited to

investors loo!ing or 7ncomeor Frowth.5 ;ustify your buy/not buy decision rom 2art %2art %%and 2art %%%i.e. no

new material.

References (not in word count):ppropriately :

7/23/2019 365000 WK7_workshop Worksheet(1)

8/10

Auckland University of Technology 365000 Accounting for Decision Making

Reference style

What is referencin05 9eerencing is the ac!nowledgement o the source o any material (other

than one>s own ideas) used by students in their wor!.5 The source material used could include6 other people>s ideas researchdiagrams and any other evidence use to bac! up or develop a point beingmade.

5 2ailing to ac!nowledge sources through citation and reerencing can lead tocharges o plagiarism.

A2A #>thed!& referencin05 9eerences appear in the two places in your 9eport6

o 7n the *ain body of the Report:This is a short :@T;O9K8:T5 style

reerence e.g. LThis way o writing is considered best (Smith %).Mo 7n the reference list at the end of the Report!This is a 2@JJ detail

o the reerence mentioned (cited) earlier in the short version e.g.Smith N. (%).Academic Writing. Jondon6 4ollins.

5 Jearning to use citation and reerencing correctly is the best protectionagainst charges o plagiarism.

You have a responsibility to ensure that your work is properlyreferenced before it is submitted.

?seful sources links5 :@T Jibrary6 http6,,www.aut.ac.n,beingKaKstudent,startingK

out,undergraduates,academicKinormation,academicKandKstudyKsupport,studentKlearning,studentKlearningKcentreKlearningKresources,reerencing

5 :

7/23/2019 365000 WK7_workshop Worksheet(1)

9/10

Auckland University of Technology 365000 Accounting for Decision Making

17

7/23/2019 365000 WK7_workshop Worksheet(1)

10/10

Auckland University of Technology 365000 Accounting for Decision Making

2la0iaris*

%t is e