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ACC101A - Introduction to Business Accounting

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Laureate International University

   

Introduction to Business Accounting (ACC101A)

   

Added on  2020-05-01

ACC101A - Introduction to Business Accounting

   

Laureate International University

   

Introduction to Business Accounting (ACC101A)

   Added on 2020-05-01

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Running head: ACCOUNTINGAccountingName of the studentName of the universityAuthor note
ACC101A - Introduction to Business Accounting_1
1ACCOUNTINGTable of ContentsPart 2..........................................................................................................................................24. Income statement comparative analysis.............................................................................25. Ratio analysis.....................................................................................................................36. Industry specific performance............................................................................................4References..................................................................................................................................6
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2ACCOUNTINGPart 24. Income statement comparative analysisLooking into the profit and loss statement and the vertical analysis of that incomparison with the industry benchmark, the following analysis have been made –Revenue – the total revenue of Rose garden Hotel Pty Ltd for the year ended 2016amounted to $ 62,91,797. As per the industry benchmark the approximately half ofthe revenue is generated from rooms revenue and 38% from food and beverages.However, for Rose Garden approximately 62% of total revenue is generated fromrooms’ revenue and 14% is generated from food and beverage revenue (Collier 2015).Cost of sales – as per the industry benchmark the cost of sales is 22% of the totalrevenue whereas, the total cost of sales for Rose Garden is 27.59%. The reason behindthis is the cost of sales for rooms as well as for food and beverages both is higher ascompared to the industry benchmark.Personnel costs – the personnel cost as per the industry benchmark is 35%, whereas,the same for Rose Garden is 25.38% which is significantly lower as compared to theindustry average. Unallocated operating cost – the unallocated operating cost of Rose Garden as perthe income statement is 18.31% which is high as compared to the industry average of15%. Total cost proportions – the net income of Rose Garden for the year ended 2016 is19.53% and the total cost proportion is 80.47%, which is slightly better as comparedto the industry average of 19% of net income and 81% of total cost. Therefore, it canbe said that the company is performing well and sustainable (Koch, Ruenzi and Starks2016).
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