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Assessment 1Steps 3,4,5,7&8Financial Statement AnalysisACCT13017Due, 2020Heidi McCormick10076872Step 3My firm is Apollo Tourism & Leisure Ltd. They are the campervans you will see travelling around the country. I was very excited to receive this company as we have actually booked a six-berth camper for our holiday in New Zealand in June so I feel lucky that I get to discover where my hard earned money will be going. I was shocked to see that that the total revenue for 2019 was over $365M. My previous knowledge of the company only came from seeing them driving around Australia and having hired one several times while driving around the beautiful country side of New Zealand. I was surprised to see that they operated out of Europe and North America with North America having more rentals than Australia.The profit and loss statement has an expense called external acquisition costs. I have never heard of this cost before and in 2017 it was $1,664,000 increasing from $0 in 2016 then to slowly decrease through to $158,000 in 2019. This has confused me as there is nothing in the notes to explain where this cost comes from. I can only assume that in 2017 they started purchasing a lot of assets which dramatically increased their costs. I am having difficulty understanding where I could look to find out more information on this expense. I thought of looking if there were dramatic changes in property plant and equipment in case they had made large purchases in 2017. There was an increase but it left me with more questions as the increase was a dramatic. From $129,625,000 in 2016 to $381,973,000 in 2019 for property, plant and equipment, so my first assumption of external acquisition costs being that they purchased a lot of assets in 2017 and less in the following year was incorrect, otherwise the assets would have increased and decreased in a similar fashion to coincide with the expense.An important area as well as a challenge for the firm is the increased amount of trades and other payables in the statement of financial position. This amount has more than tripled over the last four years to $33,298,000 in 2019. The notes on this liability state that these amounts are usually paid within 30 days but I could not find where there is proof of this or exactly what percentage is not paid within 30 days. As a company I can imagine they would not want to have a bad relationship with their suppliers by not paying their debts on time. If they are paying within 30 days, then I guess they are successful in meeting that challenge to then keep the suppliers happy to be able to continue business.Something that I find confusing is for the 2019 year they have changed the financial statements and revenue section. Sales of service and sales of goods are no longer an item and revenue from contracts with customers and rental income is now in its place as a new accounting policy. It states that the new policy is for when the control of the goods and services is transferred to the customer at an amount that reflects the consideration to which the consolidated entity expects to be entitled in exchange for transferring goods or services to a customer. In my understanding this is just a reflection of the movement of sales for the company.Another key challenge for the first is soft sales of their second hand vehicles world-wide. This has been offset by a higher than expected increase in rental demand. Although I feel that the soft sales markets need to be taken seriously and could be critical as when every part of the business is succeeding then there is no need for another area of the business to have to exceed to be able to make up for the areas that are not doing well. I believe the strategy Apollo has taken on is to retain these vehicles that did not sell for the following season which then reduced the purchasing requirements, that would have needed to take place if these vehicles were sold. It is stated that they were able to achieve this strategy due to the flexibility of their business model.News articles, blogs and videosSome negative reports on TripAdvisor. Not painting the company in good light. of some of the fleet and what you can see in a motorhome/van great video with a how to guide on a few motor home models specials Apollo has on offer favourite BlogsThese have been posted to the forum as specified in requirements:Kiah Frahm’s Blog opening Kiah’s blog, I had to have a laugh. The first words that popped up where “The Reckoning”. I think we all feel like that at some stage during the term. I really enjoyed the view ability of her page and that she added a personal photo so I could get more of an idea who I was communicating with. Also, the way she set out her KCQs with headings such as the chapters. This made an easy read. I also felt like she didn’t overdo this step. She was able to add some good aspects of confusion and agreement. An overall enjoyable read. I did leave a comment and have discussion on Kiah’s blog but was unable to paste a snip as proof. She is using something other than WordPress and it is not allowing me to see comments.The evidence of Kiah’s personal photo on her blog:Tia McGrath enjoyed reading through Tia’s blog as it was easy to navigate. I was also blown away with the depth in which she wrote her KCQs. I do not know how she managed to complete such as long draft as six pages in Step 6 within the suggested timeframe as I had completed much less and went over the suggested four hours. I was a really good read and I can’t wait to see what Tia brings for the rest of the assignment.My evidence and comment on Tia’s blog so far:Jemma Ahmann had another different idea on KCQ’s and I felt was more personal and added more emotion into her understand of the readings. I like how she linked this being a capstone unit to the importance of the significant link it has with being able to understand a firm. Jemma also wrote a lot of personal information on her blog which really helped to get to know her and where she has come from. She also included a photo of herself which is nice to see whom I am talking to.Evidence of Jemma’s Blog and my comment:Conversations had about differences and similarities with others financial statementsHave not received a reply from Marc at time of submission.Finally, after looking through other people’s firms and financial statements, I was surprised to not see any great differences. I think mostly, my company is trying to be a bit too fancy with their annual statement which makes it a little harder to follow and read. If they were to simplify it more with less pictures and graphs in the beginning, then the information would be more easily accessed.StudiosityI have used this service several times before and almost every time I have been surprised with how much I missed while proof reading. Some of the people at studiosity are amazing and pick up on every little thing. I have learnt so much about my grammar and sentence structure. I know that I have improved on my writing because of the studiosity team. The feedback this time was defiantly useful, especially where I should be using more punctuation. I will continue to use this service and share my thought with others.Step 5Trying to find my finance income was hard. I knew it had to be there but where? I spent many hours searching through each year’s statements as well as some research to try and narrow down what finance income could be in case I was missing something. It was a very frustrating process. I asked for advice on the facebook page which helped as well as Martin replying to an email. I eventually came to an answer and I am really hoping it is correct as I spent a lot of time getting to the end result. I was also able to ehlp out one of the other students as she was having a similar issue. Evidence is below.I also needed help once finishing my restating. I was careful to not have missed any lines and was following Maria’s video step by step. I asked on facebook for help as my figures were not balancing and I was lost as I had been following the steps so slowly and intently. I had learnt a lot from this as I wasted a lot of time which didn’t need to be. I had accidentally double entered some figures. If I have not just checked ever line was entered but also checked the figures, then I would have picked this up. It was kindly pointed out by one of the other students. As for the amounts not balancing. I hadn’t watched through to the end of the video. If I had watched another 30 seconds I would have seen that Maria had actually made a mistake in the calculating which she explained at the end. I had also made this same mistake and would have figured it out if I had just watched the end of the video and not expected Maria to be 100% correct. My lesson learnt is that anyone can make a mistake. Even the lecturers and to have more confidence in myself to just spend some time to have a look and see where something may have gone wrong. Below are the conversations from facebook.One thing I did learn, and I do not know how I didn’t pick this up before is that my company was only floated on the share market in November of 2016. I found this really interesting but couldn’t find much information as to why they decided to take this step. I read in some online articles that they made some big promises of profits in the coming years which would have been very enticing for the investors.I defiantly found this task easier than when I first completed it 3 years ago as my first unit in my degree. I was so stressed out completing it last time as I had never heard of most accounting terms let alone using excel. It was all so new to me. I still spent many hours completing this spreadsheet but it was so much less stressful and I was actually able to take some of the information on board and hopefully retain it for the future.STEP 7Step 7 is the ratio analysis and has been completed within the spreadsheet. This took me much longer than the estimated 4 hours. I had some communications with Kiah Frahm’s about the difference between our ratios. I wanted to try and complete this step without looking at the exempla’s as I thought that might help me to understand each ratio better and what it was trying to say. I did end up looking at the exempla’s as there was only so much that I could complete as I found this step quite tedious and technical as I still struggle with some of the terminologies and what they mean.STEP 8Feedback From: Heidi McCormickFeedback To: . My CommentsStep 1KCQsStep 2KCQsStep 3Background information on companyComments/KCQsComments on other’s blogsStep 4Input company’s financial statementsStep 5Restated Income statementRestated Balance sheetCommentary & discussion with othersStep 6KCQsStep 7Calculation of ratiosOverall ASS#1Feedback From: Heidi McCormickFeedback To: . My CommentsStep 1KCQsStep 2KCQsStep 3Background information on companyComments/KCQsComments on other’s blogsStep 4Input company’s financial statementsStep 5Restated Income statementRestated Balance sheetCommentary & discussion with othersStep 6KCQsStep 7Calculation of ratiosOverall ASS#1Feedback From: Heidi McCormickFeedback To: . My CommentsStep 1KCQsStep 2KCQsStep 3Background information on companyComments/KCQsComments on other’s blogsStep 4Input company’s financial statementsStep 5Restated Income statementRestated Balance sheetCommentary & discussion with othersStep 6KCQsStep 7Calculation of ratiosOverall ASS#1 ................
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