Analyzing Financial Performance and HR Practices at Carnival UK

Desklib provides past papers and solved assignments for students. This report analyzes Carnival Corporation's business.

[THE HOSPITALITY BUSINESS TOOLKIT]

INTRODUCTION
Hospitality sector becomes much popular in today's competitive environment and gained
importance due to larger contribution to the economies of various countries the hospitality
industry focuses on keeping the customer and clients happy by providing them satisfactory and
warm services (Jackson et al., 2014). The purpose of the assignment is to understand different
aspects of the hospitality industry and provide recommending methods in order to measure
financial performance with respect to Carnival Corporation and Plc.
Carnival UK is a British based Cruise operator company that operates more than 100 ships so as
to provide hotel style accommodation, entertainment and other excursion services to the
customer. The company provides employment to more than 120000 people across the world
and aims to provide a happy and memorable holiday to guests across the world (Scherer and
Palazzo, 2011).

ACTIVITY 1 DOUBLE ENTRY BOOKKEEPING TO TRIAL BALANCE
JOURNAL ENTRIES OF FEBRUARY MONTH FOR CARNIVAL CORPORATION & PLC
The journal entries with respect to the financial transaction of Carnival UK as follows:
DATE PARTICULARS Debit (£) Credit (£)
1st February Purchase A/c. Dr.
To Kate’s Kitchen
To Harry
34,553
5001
29,552
Being food purchased from Kate’s Kitchen worth £ 5,001 and Beverages Purchased worth
£29,552 in credit for business.
3rd February Cash A/c. Dr.
To Sales A/c.
13027
13027
Being Cash sales recorded
6th February Kate’s Kitchen A/c. Dr.
To Bank A/c.
5001
5001
Being payment made to Kate’s through bank transfer in full.

10th February Cash A/c. Dr.
To Sales A/c.
10,653
10,653
Being Cash Sales made for Beverages £8,966 and Food for £1,687.
14th February Bank A/c. Dr.
To Sales A/c.
2,008
2,008
Being payment received on the same day on account of providing business and catering
services.
17th February Cash A/c. Dr.
To Sales A/c.
13,321
13,321
Being Cash Sales made for beverages accounted for £11,710 and food for £1,611.
17th February Harry’ A/c. Dr.
To Cash A/c.
29,552
29,552
Being payment made to harry in Full and Final settlement.
24th February Cash A/c. Dr.
To Sales A/c.
12, 329
12,329
Being Cash Sales made for Beverages £10,614 and food for £1,715.

Posting To Ledger Accounts
CASH A/C
Dr Cr.
DATE PARTICULARS J.F AMOUNT(£) DATE PARTICULARS J.F AMOUNT(£)
3rd Feb
10th
Feb
17th
Feb
24th
Feb
To Sales A/c.
To Sales A/c.
To Sales A/c.
To Sales A/c.
13,027
10,653
13,321
12,329
17th
Feb
28th
Feb
By Harry
By Bal. c/d
29,552
19,778
Total 49,330 Total 49,330
1st
March
To Bal. b/d 19778

PURCHASE A/C
Dr Cr.
DATE PARTICULARS J.F AMOUNT(£) DATE PARTICULARS J.F AMOUNT(£)
1st Feb
1st Feb
To Kate’s
Kitchen
To Harry
5,001
29,552
28th
Feb
By Bal. c/d 34,553
Total 34,553 Total 34,553
1st
March
To Bal. b/d 34,553
SALES A/C
Dr Cr.
DATE PARTICULARS J.
F
AMOUNT(£) DATE PARTICULARS J.F AMOUNT(£)
28th
Feb
To Bal. c/d 51,338 3rd
Feb
10th
Feb
14th
Feb
17th
By Cash A/c.
By Cash A/c.
By Bank A/c.
13,027
10,653
2,008

Feb
24th
Feb
By Cash A/c.
By Cash A/c.
13,321
12,329
Total 51,338 Total 51,338
1st
March
By Bal. b/d 51,338
BANK A/C
Dr Cr.
DATE PARTICULARS J.
F
AMOUNT(£) DATE PARTICULARS J.F AMOUNT(£)
14th
Feb
28th
Feb
To Sales
To Bal. c/d
2,008
2,993
6th
Feb
By Kate’s Kitchen 5,001
Total 5,001 Total 5,001
1st
March
To Bal. b/d 2,993
KATE’S KITCHEN A/C
Dr Cr.
DATE PARTICULARS J.F AMOUNT(£) DATE PARTICULARS J.F AMOUNT(£)

6th Feb To Bank A/c. 5,001 1st
Feb
By Purchase A/c. 5,001
Total 5,001 Total 5,001
HARRY’S A/C
Dr Cr.
DATE PARTICULARS J.F AMOUNT(£) DATE PARTICULARS J.F AMOUNT(£)
17th
Feb
To Cash A/c. 29,552 1st
Feb
By Purchase A/c. 29,552
Total 29,552 Total 29,552

TRIAL BALANCE OF CARNIVAL CORPORATION & PLC
ACCOUNT TITLE L.F DEBIT (£) CREDIT (£)
Cash A/c.
Bank A/c.
Purchase A/c.
Sales A/c.
19,778
34,553
2,993
51,338
Total 54,331 54,331

ACTIVITY 2 RECCOMEDING METHODS SO AS TO MEASURE FINANCIAL
PERFORMANCE
KEY PERFORMANCE INDICATOR FOR THE BUSINESS OF CRUISE OPERATOR
A KPI helps to measure the company’s value so as to effectively achieve the business objectives.
Carnival UK can use KPI at multiple levels in order to evaluate the success towards reaching the
targets (Yang et al., 2012). It is very important to keep a track of key performance indicators so
as to ensure the effectiveness of the business operations of Carnival UK.
The KPI indicators with respect to the restaurant business of Carnival UK as follows:
Cost of goods sold - This is one of the main aspects that need to measure appropriately. COGS
include all costs incurred in making the food available at cruise. Thus, it is required by Carnival
UK to effectively manage the food cost so as to drive the profitability of the business.
Food wasted per food purchased- The wastage of Food is one of the major concerns at every
restaurant. The manager at Carnival Corporation needs to continuously keep monitoring on the
wastage of food so as to improve the demand forecasting. It will further lead to better
management.
KEY PRINCIPLES IN MANAGING AND MONITORING FINANCIAL PERFORMANCE
Preparation of financial statement
It is required by every business to prepare the financial records that include a balance
sheet, P&L statement and Cash Flow statement (Yang et al., 2012). The preparation of
these statements will enable the manager at Carnival UK to analyze the financial
position of the business and measure the liquidity position.
Preparation of Inventory records
Hospitality needs to adequately manage their inventory records for the purpose of
keeping a track on wastage of food at any point of time. The inventory manager at

Carnival UK needs to calculate Input/output ratio and Stock turnover ratio so as to
efficiently manage the inventory of the company (Hoque, 2013).
Working capital management and analysis of Financial Ratios
Working capital is necessary for the purpose of managing the day to day activities of the
business. It plays a vital role in managing the day to day expenses of the business
efficiently (Scherer and Palazzo, 2011.).
Moreover, Carnival Corporation needs to calculate a financial ratio that will help to
improve the business performance. The ratios provide insight on various financial
indicators and thereby reflect the financial position of the business and help to make
sound financial judgments.
Analysis of overhead
There is various overhead that needs to be incurred on a daily basis. It is important by
the operational manager at Carnival UK to conduct the overhead analysis for the
purpose of ensuring proper distribution and allocation of costs.
Reviewing daily business cash
The restaurant needs to review the cash on a daily basis and also check the legal aspect
of cash collection with respect to UK laws. The flow of cash needs to effectively manage
so as to avoid any leakages in the business operations of Carnival UK (Bratton and Gold,
2017).