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Running head: ACCOUNTING FOR DECISION MAKING Accounting for decision making Name of the student Name of the university Student ID Author note
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1ACCOUNTING FOR DECISION MAKING Table of Contents Part 2 – Company research, graphs and investor information...................................................2 Answer [A].............................................................................................................................2 Answer [B].............................................................................................................................2 Answer [C].............................................................................................................................3 Answer [D].............................................................................................................................3 Answer [E].............................................................................................................................3 Part 3 – Identification of the key financial data and ratio analysis............................................4 Answer [A].............................................................................................................................4 Answer [B].............................................................................................................................4 Reference....................................................................................................................................6
2ACCOUNTING FOR DECISION MAKING Part 2 – Company research, graphs and investor information Answer [A] 1.Services and products – women swear, intimate apparel, home wares, cosmetics, fragrance,electricalgoods,toys,handbags,footwear,generalmerchandiseand accessories. 2.Name of CEO – Richard Umbers (Myer 2018) 3.Salary of CEO – 14,24,793 4.Profit and loss after tax at the end of the year 2016 – $ 60,543,000 5.Payment of dividend – 2.0 cents paid on 9thNovember 2017 (Myer 2018) 6.Total assets of the company – for 2016 - $ 19,56,342,000 and for 2017 - $ 18,78,529,000 7.Number of employees – more than 14,000 8.Share price – on 18thMay 2018, High – 0.46 and low – 0.42 (Myer 2018) Answer [B] Share price movement graph for Myer holding 20/04/2018 22/04/2018 24/04/2018 26/04/2018 28/04/2018 30/04/2018 02/05/2018 04/05/2018 06/05/2018 08/05/2018 10/05/2018 12/05/2018 14/05/2018 16/05/2018 18/05/2018 0 0.1 0.2 0.3 0.4 0.5 0.6 Myer Holding Close Date S t o c k m o v e m e n t
3ACCOUNTING FOR DECISION MAKING Share price movement graph for All Ordinary Index 20/04/2018 22/04/2018 24/04/2018 26/04/2018 28/04/2018 30/04/2018 02/05/2018 04/05/2018 06/05/2018 08/05/2018 10/05/2018 12/05/2018 14/05/2018 16/05/2018 18/05/2018 5800 5900 6000 6100 6200 6300All Ordinary Index Close Date S t o c k m o v e m e n t Answer [C] Share price movement From the above it can be identified that the share price of both Myer holding and All Ordinary Index are upward moving. However, the stock of Myer holding is slow moving whereas the stock of All Ordinary Index is moving highly (Au.finance.yahoo.com 2018). Answer [D] Calculation of gain or loss Purchase price of Myer holding share on 20thApril 2018 was $ 0.355 per share. Share price on 18thMay 2018 was 0.45 per share. Therefore gain per share = (0.45 – 0.355) = $ 0.095 per share (Au.finance.yahoo.com 2018). Answer [E] As the share price is upward moving at present therefore the investor shall sell the shares.
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4ACCOUNTING FOR DECISION MAKING Part 3 – Identification of the key financial data and ratio analysis Answer [A] Key financial data of SEEK Limited for the year ended 2017 ParticularsAmount ($000) Revenue / Sales24,65,341 Interest Expense(11,259) EBIT41036 Net Profit Before Tax30,213 Net Profit After Tax11,939 Current Assets430,567 Total Assets18,78,529 Current Liabilities487,014 Total Liabilities805,661 Total Equity10,72,868 Answer [B] Ratio analysis RatioFormula2017 Profitability ratio Net profit marginNet profit/Sales * 1000.48 Return on AssetNet profit/Total assets * 1000.64 Stability ratio Debt to asset ratioTotal liabilities / total asset0.43 Debt equity ratioTotal liabilities / total equity0.75 Liquidity ratio Current ratioCurrent assets / Current liabilities0.53 Quick ratio(Current assets - inventories) / current liabilities0.07 From the above ratio calculation it can be found that the profitability position of the company is poor. Further, the stability ratio is signifying that the company is highly leveraged
5ACCOUNTING FOR DECISION MAKING and the liquidity ratio is stating that the company is not efficient to off its short-term liabilities (Myer 2018).
6ACCOUNTING FOR DECISION MAKING Reference Au.finance.yahoo.com.2018.YahooisnowapartofOath.[online]Availableat: https://au.finance.yahoo.com/quote/%5EAORD/history? period1=1524162600&period2=1526841000&interval=1d&filter=history&frequency=1d [Accessed 28 May 2018]. Myer. 2018. Myer. [online] Available at: https://www.myer.com.au/ [Accessed 28 May 2018].