Question:
Read the text. Work through the chapter examples. Attempt the end of text chapter multiple choice Quick Check questions. Discuss these during the class. Read the topic materials in Interact2. Attempt the topic multiple choice, matching, blank space and problem questions. Check the solutions provided. Attempt the assignment questions week by week. Watch the videos on worksheets, the ABC learning case study and inventory systems. Your conscientious attempt at the assignment questions will be good preparation for the final exam.
The assignments in this subject are designed to assess the subject learning outcomes including your acquired knowledge and skills. Tasks include exercises, problems, discussion questions, questions related to computing skills and business report writing. The assignment tasks are designed, in general, to follow the topics shown on the weekly schedule. Thus they are structured so as to simulate a pattern of weekly learning. Students are strongly encouraged to attempt this subject by studying on a regular (weekly) basis and, if possible, to get ahead of the schedule.
It is essential in accounting and finance that students work continuously throughout the session. It is in your interest to submit assignments by the due date, noting timely feedback to all students requires that assignment deadlines are maintained. For each assessment task, you are required to complete all questions in the correct sequence and submit all necessary workings. Note the special requirements for the spreadsheet tasks in your assignments (refer to the 'Requirements' section).
Answer:
Financial position of the Qantas company of 2016 is evaluated on the basis of Annual report. In this report it further evaluates that Qantas cash position is not strong and therefore, it does not provide adequate returns to the investors.
Performance
|
Particulars
|
2016 ($M)
|
2015($M)
|
|
Total revenue
|
16200
|
15816
|
It is seen from the above table that Qantas revenue has increased by 2.43% in 2016 from 2015.
Comprehensive Income
Qantas group has increased its comprehensive income by 20% in 2016 over 2015 which includes transactions from both ordinaries and extraordinary items.
Todd Sampson
Todd Sampson is one of the Independent non-executive director in Qantas group. He has given recommendations to organization about the strategies to be followed for smooth functioning of the business, increment in the market share and how to stay as a competitor in the world.
Revenue seat factor, EBIT, retained earnings, revenue received in advance
- Revenue seat factor was 79.4% in 2016.
Increment in Revenue seat factor by 2.1% in 2016 over 2015.
|
Particulars
|
2016 ($M)
|
2015($)
|
|
EBIT
|
1643
|
1048
|
|
Revenue received in advance
|
136
|
360
|
|
Retained earnings
|
(100)
|
(115)
|
Working capital ratio
Working capital ratio = current assets/ current liabilities
|
Particulars
|
2016 ($M)
|
2015($)
|
|
Current assets
|
3500
|
5166
|
|
Current liabilities
|
7105
|
7642
|
|
Working capital ratio
|
0.49
|
0.68
|
Comment
Liquidity performance of Qantas group in 2016 was not efficient.
3D columns and Pie charts
|
Financial data of Qantas Group
|
|
Particulars
|
2016 ($M)
|
2015($)
|
|
Total revenue
|
16200
|
15816
|
|
EBIT
|
1643
|
1048
|
|
Operating profit
|
1643
|
1048
|
|
COGS
|
14449
|
14583
|
![]()
![]()
Conclusion
Qantas group is providing best returns in long-term because Qantas’s liquidity position is not adequate. Thus, it is advised to Ramesh that he should invest its $ 50,000 only for long-term purpose.
References
Qantas Annual Report. (2016). New Horizons: Qantas Annual report 2016. Retrieved on 22 April 2017 from https://www.qantas.com.au/infodetail/about/corporateGovernance/2016AnnualReport.pdf.
