Assignment Cover Sheet for Corporate Governance - Southern Cross University

0ACCOUNTING FOR MANAGERS
SOUTHERN CROSS UNIVERSITY
ASSIGNMENT COVER SHEET
For use with online submission of assignments
Please complete all of the following details and then make this sheet the first
page of each file of your assignment – do not send it as a separate
document.
Your assignments must be submitted as either Word documents, text documents
with .rtf extension or as .pdf documents. If you wish to submit in any other file
format please discuss this with your lecturer well before the assignment submission
date.
Student Name: Muddasani Rahul
Student ID No.: 23201284
Unit Name: Corporate Governance
Unit Code: Acc03043
Tutor’s name: Shagun khemka
Assignment No.: 2
Assignment Title:
Due date:
Date submitted:
Declaration:
I have read and understand the Rules Relating to Awards (Rule 3
Section 18 – Academic Misconduct Including Plagiarism) as
contained in the SCU Policy Library. I understand the penalties
that apply for plagiarism and agree to be bound by these rules. The work
I am submitting electronically is entirely my own work.
Signed:
(Muddasani
Rahul)
Date:

1ACCOUNTING FOR MANAGERS
Table of Contents
Question 1......................................................................................................................2
Question 2......................................................................................................................3
Question 3......................................................................................................................4
References......................................................................................................................6

2ACCOUNTING FOR MANAGERS
Question 1
a) Financial Ratio
 Earning Power of Company: Return on Equity.
 Usage of Internal Resource for Finance of Asset: Equity Multiplier (Total
Assets/Total Equity Ratio).
 Rapidity of Receivables: Accounts Receivable Turnover Ratio
 Entity Earnings in Response to Interest Payments: Interest Coverage Ratio
 Time Taken for selling Inventory Days Sales of Inventory (365/Inventory
Turnover Ratio)
b) Ratio’s Calculation
Return on Equity: The return on equity for the company states the amount of
profitability that is generated by the company by using the equity finance of business
for the company. The return on equity for the company states the same was around
21.75% for the company whereby the company is earning a significant amount of
profitability for the purpose of creating wealth and delivering an effective financial
performance for the company (Khadafi, Heikal and Ummah 2014).