PACC6011 Accounting Information Systems

INDIVIDUAL WRITTEN REPORT (worth 10%)

Due: 5 pm – Friday, 4 November 2022

PURPOSE

To assess the student’s ability to produce the financial statements of the fictional company from Assessment 2 Part A and using the financial data from the financial statements, calculate and analyse the financial ratios and report the results in a written business report.

REQUIRED

1) Produce the Balance Sheet and Income statement of the fictional company from Assessment 2 Part A.

2) Using the Balance Sheet and Income Statement of the company obtained from Assessment 2 Part A, calculate the following ratios related with profitability, liquidity and solvency. Your written report should contain the detail calculations*.

Current ratio = Current Assets / Current Liabilities

Quick ratio = (Current Assets – Inventory) / Current Liabilities

Inventory turnover = Cost of Good Sold / Inventory

Gross profit Margin %= Gross Profit / Net Sales

Net profit Margin % = Net Profit / Net Sales

Return on Asset % = Net Profit / Total Assets

Debt to Asset Ratio = Total Liabilities / Total Assets

*Tabulate and show the ratio formula and detailed calculations and workings in an Appendix.

3) Industry related ratios are provided below. Compare the industry-based ratios with your findings in part 2 of this assignment. Discuss the findings/results of your financial analysis of each ratio, and include your recommendations for managerial actions in your report.

Industry Ratio
Current ratio = Current Assets / Current Liabilities	2.45:1
Quick ratio = (Current Assets – Inventory) / Current Liabilities	1.60:1
Inventory turnover = Cost of Goods Sold / Inventory	5
Gross profit Margin %= Gross Profit / Net Sales	16%
Net profit Margin % = Net Profit / Net Sales	10%
Return on Asset % = Net Profit / Total Assets	6%
Debt to Asset Ratio = Total Liabilities / Total Assets	35%

A marking rubric (assessment criteria) is included in this assessment for your information.

The marking rubric details what is required in the report under each section.

Administrative Details

Your individual assignment (in a report form) should be lodged through the Turnitin Assignment folder in CANVAS by 5pm – Friday, 4 November, 2022. LATE SUBMISSION PENALTY APPLIES.

This assignment must be typewritten and 1.5 spaced and in a word file.

Length: 1000 word limit (excluding Cover Page, Executive Summary, Table of Content, Reference List and Appendices). +/- 10% variation of the word limit is acceptable.

Attach an Assignment Cover Sheet to your submission.

A copy of the assignment should always be kept by the student.

The policies on late submission of assignments and plagiarism are provided in the Course Outline. Extensions with valid reasons will only be considered if the application is made 48 hours prior to submission.

Checklist before submission

Assignment Cover sheet completed with Assignment title, student name, student ID, word count
Carefully proofread/edited for correct grammar and spelling
Format and presentation:
Executive Summary (separate page)
Table of Content (separate page)
Introduction
Analysis Financial Ratio analysis, inferences and results
Conclusion & Recommendation
References (separate page)
Appendices (separate page)Balance Sheet and Income StatementCalculations of ratios showing formulae and data
Consistent fonts and headings
Page numbers and correct cross-referencing
Turnitin copy submitted

Newcastle Business School	PACC6011 Business Report Rubric
Date:	Course Name: Accounting Information Systems
Student Name:	Student Number:

Criteria		Standards
	Marks	Fail	Pass	Credit	Distinction	High Distinction	Score
Executive Summary	1	Inadequate summary for the executive audience.	Adequate summary for the executive audience.	Quite well developed summary for the executive audience.	Well developed summary the executive audience.	Excellent summary for the executive audience.
Introduction	0.5	Inadequate and does not convey purpose or report’s form.	Adequate but can improve in development and clarity.	Quite well developed.	Well developed.	Excellent introduction and quick to engage a professional audience.
Analysis/Inferences & Results	5.5	Inadequate and inaccurate analysis. Inappropriate data. No visual supplements.	Adequate analysis based on appropriate data and with visual supplements but needs some more thought and work.	Quite well developed analysis based on appropriate data and with visual supplements.	Well developed analysis based on appropriate data and with visual supplements.	Excellent, thorough, insightful based on appropriate data and with visual supplements.
Conclusion & Recommendations	2	Both are unclear and not connected to the report’s data.	Both are adequate.	Both are quite well developed.	Well developed	Excellent, pertinent, realistic, evidence-based, and detailed.
Report Organisation & Format	0.5	Sections are poorly organised and some are missing. Many formatting errors exist.	All required sections are included but require better organisation and structure. Formatting errors exist but do not impede the reader.	All required sections are quite well organised and structured with minimal formatting errors.	All required sections are well organised and structured with no formatting errors.	Very professional. All required sections are very well organised and structured with no formatting errors.
Mechanics, Spelling & Grammarand Referencing	0.5	Many grammatical, spelling and /or referencing errors.	Some grammatical, or spelling and /or referencing errors.	Minimal grammatical, spelling and /or referencing errors.	Essentially free from grammatical, spelling and / or referencing errors.	No grammatical, spelling and / or referencing errors.