BACC1AMD - Accounting for Management Decisions: Lendlease Analysis

This report provides a comprehensive financial analysis of Lendlease Group, a multinational construction, property, and infrastructure company. It includes an analysis of the company's income statement, balance sheet, and cash flow statement for the years 2016 and 2017, using horizontal analysis to identify significant changes and trends. The report also includes journal entries, general ledgers, an income statement, a statement of changes in equity, and a balance sheet for Kaylee Limited. The analysis covers key financial metrics such as rental income, investment income, pre-tax profit, net profit after tax, cash, receivables, investments, total assets, liabilities, and equity. The document is useful for understanding the financial health and performance of Lendlease Group and Kaylee Limited, with detailed tables and figures illustrating the financial data.

Running head: ACCOUNTING FOR FINANCIAL DECISION
Accounting for Business Decision
Name of the Student:
Name of the University:
Author’s Note:

1
ACCOUNTING FOR FINANCIAL DECISION
Table of Contents
Question 1:.......................................................................................................................................3
Question 2......................................................................................................................................11
Requirement (a).........................................................................................................................11
Requirement (b).........................................................................................................................11
Requirement c............................................................................................................................15
Requirement (d).........................................................................................................................15
Conclusion.................................................................................................................................16
Reference.......................................................................................................................................17

2
ACCOUNTING FOR FINANCIAL DECISION

3
ACCOUNTING FOR FINANCIAL DECISION
Question 1:
Dr. Cr.
Date Amount Amount
30-06-2017 Accounts Receivable Dr. 60000
To, Service Revenue 60000
Rent Expense Dr. 60000
To, Prepaid Rent 60000
Supplies Expense Dr. 36000
To, Supplies 36000
Depreciation Expense Dr. 48000
To, Accum Depr. - Equipment 48000
Salaries Expense Dr. 86400
To, Salaries Payable 86400
Interest Expense Dr. 7200
To, Interest Payable 7200
Comm. Rev. Rec'd in Advance Dr. 52800
To, Commission Revenue 52800
(Being commission received in advance recognized)
Journal Entries:
Particulars
(Being unrecorded credit sale recorded in the books)
(Being rent expired for the period recorded)
(Being supplies consumed in the period recorded)
(Being depreciation charged on equipment)
(Being salaries accrued recorded)
(Being interest accrued recorded)

4
ACCOUNTING FOR FINANCIAL DECISION
Dr. Cr.
Date Particulars Amount Date Particulars Amount
30-06-2017 To, Balance b/d 915600 30-06-2017 By, Balance c/d 915600
915600 915600
Dr. Cr.
Date Particulars Amount Date Particulars Amount
30-06-2017 To, Balance b/d 43200 30-06-2017 By, Balance c/d 103200
To, Service Revenue 60000
103200 103200
Dr. Cr.
Date Particulars Amount Date Particulars Amount
30-06-2017 To, Balance b/d 180000 30-06-2017 By, Rent Expense 60000
By, Balance c/d 120000
180000 180000
Dr. Cr.
Date Particulars Amount Date Particulars Amount
30-06-2017 To, Balance b/d 72000 30-06-2017 By, Supplies Expense 36000
By, Balance c/d 36000
72000 72000
General Ledgers:
Cash A/c.
Accounts Receivable A/c.
Prepaid Rent A/c.
Supplies A/c.
Dr. Cr.
Date Particulars Amount Date Particulars Amount
30-06-2017 To, Balance b/d 960000 30-06-2017 By, Balance c/d 960000
960000 960000
Dr. Cr.
Date Particulars Amount Date Particulars Amount
30-06-2017 To, Balance c/d 48000 30-06-2017 By, Depreciation Expense 48000
48000 48000
Equipment A/c.
Accumulated Depreciation - Equipment A/c.

5
ACCOUNTING FOR FINANCIAL DECISION
Dr. Accounts Payable A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance c/d 153600
30-06-
2017 By, Balance b/d 153600
153600 153600
Dr. Salaries Payable A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance c/d 86400
30-06-
2017 By, Salaries Expense 86400
86400 86400
Dr. Interest Payable A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance c/d 7200
30-06-
2017 By, Interest Expense 7200
7200 7200
Dr. Comm Rev. Rec'd in advance A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Commission Revenue 52800
30-06-
2017 By, Balance b/d 96000
To, Balance c/d 43200
96000 96000
Dr. Bank Loan A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance c/d 720000
30-06-
2017 By, Balance b/d 720000

6
ACCOUNTING FOR FINANCIAL DECISION
720000 720000
Dr. Share Capital A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance c/d 840000
30-06-
2017 By, Balance b/d 840000
840000 840000
Dr. Dividends A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance b/d 24000
30-06-
2017 By, Balance c/d 24000
24000 24000
Dr. Service Revenue A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance c/d 681600
30-06-
2017 By, Balance b/d 621600
By, Accounts Receivable 60000
681600 681600
Dr. Commission Revenue A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance c/d 412800
30-06-
2017 By, Balance b/d 360000
By, Comm Rev. Rec'd in Advance 52800
412800 412800
Dr. Salaries Expense A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06- To, Balance b/d 434400 30-06- By, Balance c/d 520800

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ACCOUNTING FOR FINANCIAL DECISION
2017 2017
To, Salaries Payable 86400
520800 520800
Dr. Rent Expense A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance b/d 120000
30-06-
2017 By, Balance c/d 180000
To, Prepaid Rent 60000
180000 180000
Dr. Depreciation Expense A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Accum Dep.- Equipment 48000
30-06-
2017 By, Balance c/d 48000
48000 48000
Dr. Supplies Expense A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Supplies 36000
30-06-
2017 By, Balance c/d 36000
36000 36000
Dr. Electricity Expense A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
30-06-
2017 To, Balance b/d 42000
30-06-
2017 By, Balance c/d 42000
42000 42000
Dr. Interest Expense A/c. Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t

8
ACCOUNTING FOR FINANCIAL DECISION
30-06-
2017 To, Interest Payable 7200
30-06-
2017 By, Balance c/d 7200
7200 7200
In the books of Kaylee Limited
Income Statement
for the year ended 30 June 2017
Particulars Amount
Revenue:
Service Revenue 681600
Commission Revenue 412800
TOTAL REVENUE 1094400
Expenses:
Salaries Expense -520800
Rent Expense -180000
Depreciation Expense -48000
Supplies Expense -36000
Electricity Expense -42000
Interest Expense -7200
TOTAL EXPENSE -834000
Net Profit for the period 260400
In the books of Kaylee Limited
Statement of Change in Equity
for the year ended 30 June 2017
Particulars Share Capital Retained Earnings
Opening Balance 840000 0
Add: Net Profit 260400
Less: Dividends -24000

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ACCOUNTING FOR FINANCIAL DECISION
Closing Balance 840000 236400
In the books of Kaylee Limited
Balance Sheet
as on 30 June 2017
Particulars Amount
Current Assets:
Cashg 915600
Accounts Receivable 103200
Prepaid Rent 120000
Supplies 36000
TOTAL CURRENT ASSETS
117480
0
Non-Current Assets:
Equipment 960000
Accum Depreciation -48000
TOTAL NON-CURRENT ASSETS 912000
TOTAL ASSETS
208680
0
Current Liabilities:
Accounts Payable 153600
Salaries Payable 86400
Interest Payable 7200
Comm. Rev. Rec'd in Advance 43200
TOTAL CURRENT ASSETS 290400
Non-Current Liabilities:
Bank Loan 720000
TOTAL NON-CURRENT LIABILITIES 720000
TOTAL LIABILITIES
101040
0
NET ASSETS
107640
0

10
ACCOUNTING FOR FINANCIAL DECISION
Equity:
Share Capital 840000
Retained Earnings 236400
TOTAL EQUITY
107640
0

11
ACCOUNTING FOR FINANCIAL DECISION
Question 2
Requirement (a)
Lendlease Group is a multinational company which is engaged in the business of
construction, property and infrastructure company which operates in Australia. The headquarters
of the company is situated in Sydney, Australia. The company is regarded as one of the
established companies in Real Estate business. The major competitors of the business who are
engaged in the same industry are DTZ group, Destia group, MITIE.
Requirement (b)
ASX Code Company Name Item 06/17 06/16 $movement % movement
LLC LendLease Group Rental Income 233,00,000.00 114,00,000.00 119,00,000.00 104.39%
LLC LendLease Group Investment Income 120,00,000.00 168,00,000.00 -48,00,000.00 -28.57%
LLC LendLease Group Other Income 168053,00,000.00 153221,00,000.00 14832,00,000.00 9.68%
LLC LendLease Group PreTax Profit 8079,00,000.00 6316,00,000.00 1763,00,000.00 27.91%
LLC LendLease Group Tax Expense -2483,00,000.00 -1647,00,000.00 -836,00,000.00 50.76%
LLC LendLease Group Net Profit after Tax Before Abnormals 5596,00,000.00 4669,00,000.00 927,00,000.00 19.85%
LLC LendLease Group Abnormals 1991,00,000.00 2312,00,000.00 -321,00,000.00 -13.88%
LLC LendLease Group Abnormals Tax 0.00 0.00 0.00 0.00%
LLC LendLease Group Net Abnormals 1991,00,000.00 2312,00,000.00 -321,00,000.00 -13.88%
LLC LendLease Group Reported NPAT After Abnormals 7587,00,000.00 6981,00,000.00 606,00,000.00 8.68%
LLC LendLease Group Outside Equity Interests -1,00,000.00 1,00,000.00 -2,00,000.00 -200.00%
LLC LendLease Group Shares Outstanding at Period End 5835,00,000.00 5823,00,000.00 12,00,000.00 0.21%
LLC LendLease Group Weighted Average Number of Shares 5610,00,000.00 5526,00,000.00 84,00,000.00 1.52%
LLC LendLease Group EPS Adjusted (cents/share) 99.73 84.51 15.22 18.01%
LLC LendLease Group EPS After Abnormals (cents/share) 135.22 126.35 8.87 7.02%
Figure 1: (Table showing Horizontal analysis of Profit and Loss Statement)
Source: (Created by Author)