7702AFE: Accounting and Reporting

Running head: ACCOUNTING INTEGRATED REPORTING
Accounting integrated reporting
Name of the student
Name of the university
Student ID
Author note

1ACCOUNTING INTEGRATED REPORTING
Table of Contents
Part A.........................................................................................................................................2
a. Ratio table.......................................................................................................................2
Part B..........................................................................................................................................4
a. Common size balance sheet............................................................................................4
b. Consolidated statement of the cash flows.......................................................................5
Part C..........................................................................................................................................5
a. Principle 2: Structure the board to add value..................................................................5
b. Principle 4: Safeguard integrity in corporate reporting...................................................7
c. Principle 7: Recognise and manage risk.........................................................................9
d. Principle 3: Act ethically and responsibly....................................................................10
Reference..................................................................................................................................13

2ACCOUNTING INTEGRATED REPORTING
Part A
a. Ratio table
Ratio & Formula Workings Calculation
1 Current ratio
= Current assets/Current
liabilities
Current Ratio=
Current assets/Current Liabilities
$389,979 / $316,527
1.23
2 Quick ratio
= (Current assets -
inventories)/Current
liabilities
Quick Ratio=
(Current assets -
inventories)/Current liabilities
($ 389,979 - $ 293,044) / $ 316,527
0.31
3 Cash ratio = (Cash +
Short-term marketable
investments)/ Current
liabilities
Cash ratio= As there are no short-
term marketable investment the two
components of this ratio calculation
are:
Cash / Current Liabilities
= $29,511/ $316,527
0.09
4a Inventory turnover =
Cost of goods
sold/Average inventory
(times)
Inventory turnover = The two
components of this ratio calculation
are Cost of goods sold/Average
inventory
$ 992,828 / (($ 293,044 + $
253,814)/2) = 3.63
3.63 times
4b Days inventory held =
365/Inventory turnover
Days of Inventory held=365 days/
Inventory turnover ratio
365 / 3.63 100.55 days
5a Receivables turnover =
Revenue/Average
receivables (times)
Receivables turnover =
Revenue / Average Receivables
$ 1319670 / (($ 53,323 + $ 46,688)/
2)
26.39 times
5b Days of sales Days of sales outstanding=

3ACCOUNTING INTEGRATED REPORTING
outstanding =
365/Receivables turnover
365/Receivables turnover
365/ 26.39
13.81 days
6 Debt/Assets = Total debt
(liabilities)/Total assets
x100 (%)
Debt/Assets =
Total liabilities / Total assets x
100%
$339,374 / $508,521 x 100%
66.74%
7 Debt/Equity = Total debt
(liabilities)/Total equity x
100 (%)
Debt/Equity =
Total liabilities / Total equity x
100%
$339,374 / $169,147 x 100% = 201
200.64%
8 Interest coverage =
EBIT/Interest payments
(times)
Interest Coverage- Calculation
consists of EBIT (Profit before
income tax and add back finance) /
interest payments
($53,379 + $4,111) / $4,111
13.98 times
9 ROE = Net
income/Average equity x
100 (%)
ROE = Net Income / Average
equity
$ 37,403 / (($ 169,147 + $ 166,940)/
2) * 100 22.26%
10 ROA = Net
income/Average total
assets x 100 (%)
ROA = Net income /Average total
assets
$ 37,403 / (($ 508,521 + $ 451,265)/
2) * 100
7.79%