Corporate Accounting: Changes in Profits and Share Price

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BAO 2203 Corporate Accounting

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Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................4
Question 3........................................................................................................................................5
Question 4........................................................................................................................................6
Question 5........................................................................................................................................7
Question 6........................................................................................................................................8

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Question 1
In all the companies there are various changes which are noted in terms of the profitability and
the share price. It is required that the changes shall be evaluated so that the reasons for them can
be identified. In this process, all the data in this respect will be collected and then the
performance evaluation will be made possible. The changes which took place in the retail food
group are as follows:
Particular
s
2016 2017 2018
Net profits 52963 61927 -306693
Share price 5.3238 4.6932 0.41
It can be noted that the profits of the company have increased in 2017 from $52963 to $61927.
This was due to the increase in the revenue which is made by the company and it was more than
the cost which was incurred in respect of the same. After this there was a great fall which took
place and company had the loss amounting to $306693 in 20181. The revenue in 2018 has
increased but then also the losses have been made. There was high rise which was faced in
various expenses such as the occupancy expense and operating expenses. There were high
impairment losses which were made and due to that the decline in profits of the company has
been faced. The amount of the losses is high and that made the company bear high amount of
losses2. Due to the same the impact has been noted on the profitability of the company. The share
1 RFG. (2018) Annual report 2018. [Online] Available at:
https://www.rfg.com.au/wp-content/uploads/2018/RFGAnnualReport2018.pdf [Accessed 5
September 2019]
2 RFG. (2017) Annual report 2017. [Online] Available at:
https://www.rfg.com.au/wp-content/uploads/2018/02/RFGLAnnualReport2017.pdf [Accessed 5