...involve money lending. * Its interest earned by a company during a accounting period. Dividends Revenue: * Distribution of earnings to shareholders in different forms. * Mutual funds are paid out of income, normally on a quarterly basis, from income generated by investments. Expenses: * Incurred in a company’s effort to generate income, representing the cost of the business.. * In the form of actual cash payments, or depreciation of an assets. * It’s always minus in the income statement. Salary Expense: * Money paid to employees for their services. Rent Expense: * The expenses incurred when occupying a space during a accounting period. Utilities Expense: * The cost of usage of lightings, electricity and water. Interest Expense: * The cost of the interest payments on borrowed money. Question 2 1) a. Cash basis: $600 b. Accrual basis: $1400 2) Under cash basis, revenue is only recorded when cash is received, after the service is provided. If majority of the transaction is on cash basis, the results produced will be similar to accrual...
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...Furniture O Furnishing O Upholstery O V C Office Furniture O V= Stock O= Operation C= Customer The operating structure of Cyclone Furniture is divided into three manufacturing sections, viz. Domestic furniture, Export furniture and Office furniture. The raw material from stock is sent to these units for manufacturing from where each unfinished product is moved to the Finishing level, and where appropriate to an Upholstery department and are finally stocked before being dispatched to Australia and the showroom in New Zealand. Suggestions on improvement As it is explained that the workers in these 3 different sections are interchangeable, it is recommended that these three sections are merged into a single section where all types of furniture is manufactured. This will minimize the labour movement and enhance the plant space utilization which will save the expenditure on the plant extension, and also maximize the machinery usage which can either lead...
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...influencing the market position of property; review the social, environmental, and economic issues that relate to planning and development process of resorts; and lastly, critique sustainable practices and policies related to resorts. Wherever appropriate, particular reference will be made on resort sector particularly in Western Australia and across other coastal areas in Australia. For example, Perth is popular for beach resorts and destination marina resorts owing to its proximity to the coastline. Indeed, the region is an attractive site for tourists. According to Pham, Simmons and Spurr (2010), tourism contributes significantly the total GDP and resort business is a major economic activity in Western Australia. Development, management and operation of beach resorts and destination marina resorts: key issues and trends Most resorts in Australia are in situated in regional zones. In Australia, major development of resorts happened in the 1980s, for example, the development of big resorts including Hyatt Sanctuary Cove, Ayers Rock Resort, Sheraton Mirage Gold Coast, Sheraton Mirage Port Douglas, Hyatt Coolum (Tourism Research Australia, 2006). Most restaurants that emerged during this period were based on overambitious expectations of the magnitude of demand for resorts coupled with a blurred...
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...6 * Financial Analysis * Profitability 9 * Liquidity 16 * Solvency 17 * Comparison With Virgin Australia * Profitability 19 * Liquidity 20 * Solvency 21 * Conclusion and Recommendation 22 Reference 23 Appendix Calculation spreadsheet – Qantas 27 Calculation spreadsheet – Virgin Australia 28 * Executive Summary This report is prepared for the purpose of evaluating a potential equity investment in Qantas Airways Limited. The analysis is mainly conducted from two different approaches, including qualitative analysis by examining the overall market environment and Qantas’ operation strategies as well as quantitative analysis of the company’s financial performance. The financial analysis is mainly focused on its profitability, liquidity and solvency and we also selected one of its major competitor Virgin Australia for comparison purpose. Overall, we have concluded that Qantas may not have a satisfying financial performance currently, however, it has great potential for growth in the future. And therefore, we expressed a ‘buy’ recommendation for Qantas Airways Limited. Company Profile Qantas Airways Limited (QAN) is the largest airline service company in Australia. It mainly offers domestic and international passenger transportation services through two airline brands – Qantas and Jetstar. Jetstar...
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...owners or partners’ equity. Also retained earnings after dividends or allocation to another equity account. 2. (a) Net assets and total equity have the same dollar value of $775,704,000. (b) Equity is the residual interest in the assets of the entity after deducting all its liabilities. 3. The finanical statements include the assets, liabilites and results of its subsidiaries incorporated in Australia. 4. The interest bearing liabilities comprises bank overdraft and unsecured bank loans. Overdraft and bank loan expiring in 15 December are reported as current liabilitis and bank loans expiring in 15 December of 2014 and 2016 respectively are reported as non-current liabilities. 5. (a)Contributed equity, reserves and retained earnings are reported under Company’s equity’s section. Contributed equity is the amount of total purchased ordinary shares. Retained earnings are the sum of profit retained in the entity after dividends payout. The share-based payment arises on the grant of share optons to employees and executives under share option plan and the cash flow hedge reserves. (b) Total equity of 775 millions in 2012 and 785 millions in 2011 are reported. (c) The opening contributed capital was $ 525,105,000 at 31st July 2011 and $547,028,000 at the end of the reporting period. The change in contributed capital is due to issue of ordinary share through dividend reinvestment. Some of the items resulting a change in reserves are net of tax and share-based...
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...his competitors. Dan schulman Dan schulman was appointed CEO in the summer of 2001 Schulman had 18 years of telecommunications experience with AT&T and was the CEO of priceline.com His goal was to achieve a run rate ;1 million subscribers by the end of the first year and 3 million by year four He established his team and Virgin branded service launched in 2002 Virgin Group Limited Virgin Group Limited is a British branded venture capital conglomerate organisation founded by Sir Richard Branson. Branson retains complete ownership and control of the Virgin Brand The core business areas are leisure, travel, tourism, mobile, broadband, TV, radio, music, finance, and health in Asia, Europe, North America, Africa, and Australia. The net worth of Virgin Group Ltd as of September 2008 is £5.01 billion. It consists of more than 400 companies around the world. Virgin...
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...CYCLONE FURNITURE COMPANY The Cyclone Furniture Company is a well established family business. It consists of an ‘exclusive furniture retail show room in the downtown business centre of a large New Zealand city, and a manufacturing plant in a neighbouring satellite town. The plant manufactures furniture for their own retail showroom (25% of the output) and for export to Australia. The plant also makes top quality office furniture all of which is exported to Australia. Overall 75% of all output is exported to Australia. Three weeks ago you were recruited as general Manager for the company. Until you were appointed, Winston Prebble had managed the business. Winston was the son of the founder of the business. Winston, although only forty, has decided to retire from running the business so as to pursue other interests. Yesterday, 31st May, he left with his new wife for an extended world trip. His parting words to you were ‘you have full authority, treat the business as your own, keep in touch, phone or e-mail me once a month’. You have a tangible incentive for the business to perform well as your remuneration package includes a bonus calculated at 2.5% of the pretax profit of the company (if the budget is achieved your bonus will be $16,500). Today, 1st June, is the first day Winston has not been breathing down your neck and you get to the office early, keen to get started. (The ‘Head Office’ is on the mezzanine floor of the retail showrooms). You are particularly anxious...
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...ACCOUNTING ASSIGNMENT 1 QUESTION 1 PART A: EROSION OF CAPITAL Historical cost is adopted and used by many businesses in Australia. Despite being used by majority, one of the main disadvantages of Historical cost is fails to maintain intact other concepts of capital like constant purchasing power capital, except money capital. It fails to measure assets at their current cost but only use their current cost. In order to maintain capital properly, it should be able to cover the replacement cost of the asset. Air Monash have been able to maintain its capital of $1,000,000 and also conclude with a profit of $500,000 for the whole year, which all together sums to $1,500,000 of total capital for thy year ending June 2008. However if the replacement cost of the aircraft is taken into account, erosion of the capital and its extent is dependent upon whether the capital can cover the replacement cost of the aircraft. Air monash is dependable on their aircraft to function their business properly and must always have fault free, and latest up to date equipment and technology, in order to have a competitive status in the industry. The current aircraft was purchased ten years go only at a cost of $2,000,000. Unlike money capital, which does not consider replacement cost, physical capital does. In order to replace the aircraft, it is going to cost Air Monash $10,000,000 to replace their current aircraft. Looking at their total current capital of 1,500,000, Air monash will not be able to...
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...Storing up Treasures "Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal.” – Matthew 6:19 Actually, most people do store up their treasures on Earth, so much so in fact, that quite a few people are filling up their own treasure chests by renting out storage space. Self-Storage is an industry in which storage space is rented out to tenants, usually on a monthly basis. The storage space is usually in the form of a room, container or locker. Access to the space is usually secured by the tenant’s own lock and key. Clients include individuals, who usually store household goods, as well as businesses, which use the facilities for storing inventory or archives. As of 2009, there was approximately 2.3 billion square feet of rentable storage space in the US. The first modern self-storage facilities appeared in the US in the 1960s. The self-storage business was meant to provide individuals with space to deal with “life events”: moving, marriage, divorce etc. American workers have always been quite mobile, and the end of the 20th century, with its increasing divorce rates, and rush of transitions to 2nd or 3rd homes, saw a significant increase in the number of life events. However, by the end of the 1990s, demand was growing at a faster rate than explained by these factors. From 2000 to 2005, the number of self-storage facilities almost doubled, with 3000 new facilities built each year. Since the 1990s, demand was increasingly...
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...AUSTRALIAN TAX LAW Contents ANSWER-01(A) 1 CASE STUDY 2 Facts 2 Option: (b) 2 Option: (c) 3 ANSWER-01 (B) 3 CASE STUDY 4 ANSWER-02 (A) 6 CASE STUDY 6 ANSWER-02(B) 7 CASE STUDY 8 REFERENCE LIST 10 ANSWER-01(A) Fringe Benefit Tax Assessment Act, 1986 (FBTAA, 1986), states that entertainment is not allowed as a tax that can be a deductible expense, as given under section 955-1 of the Income Tax Assessment Act, 1997 (ITAA, 1997). This is however only, unless till the time a Fringe benefit Tax (FBT) @ 46.5% has been paid upon the same. One also has to keep in the considerations important factors such as: * GST to be levied at 10% of the fringe benefit amount. Section 136 of FBTA also states that if there is a benefit which is provided to the employee or to the third party who is related to the third party who may be the spouse, and such a benefit has been provided in a manner which is either full or in part, as a work benefit and a liability that arises for the payment of FBT then Goods and Services Tax may also be applied on the same and the tax payer denied of the GST credits, it may also apply the lower gross-up rate for FT. There are many Companies which may organize entertainment functions for the people employed under them and the third parties with respect to these employees in the form of either gifts or parties. The party maybe on the site or offsite and include food and drink with recreations like banks and gifts may also form a part...
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...of mandatory IFRS adoption on earning management 1.1 In 2012, Yi Lin Chua, Chee Seng Cheong. And Graeme Gould publish a article named “The Impact of Mandatory IFRS Adoption on Accounting Quality: Evidence form Australis. This article examines the impact of IFRS on accounting quality by focusing on threes perspectives: (1) earning management, (2) timely loss recognition, and (3) value relevance. In my paper, I will focus on earning management. First, the author talk about the reason he choose Australia. Because Australia is one of the first countries located outside of the EU that has mandated IFRS and is also the first non-EU adopting country that had fully prohibited an early adopting of IFRS prior to the 2005 mandate. After that, the article propose the three research hypotheses: HI: Earnings management has changed following the mandatory adoption of IFRS in Australia. H2: Timely loss recognition has changed following the mandatory adoption of IFRS in Australia. H3: The degree of association between accounting data and...
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...Jutex Bangladesh LETTER OF TRANSMITTAL 13 January, 2016 Dr. A.K.M Saiful Majid Professor Institute of Business Administration, University of Dhaka Sir, Enclosed is a business plan on “Jute Diversifying Product Manufacturing plant” that we prepared as the take home final business assignment for the Entrepreneurship course. we decided to conduct the plan on ‘Jute Diversifying Product Manufacturing plant’ keeping in mind the importance of market potential in Bangladesh. You approved our topic on January 10, 2016. The date of submission was set on January 13, 2016. This plan was conducted with proper authorization. The authenticity of the sources used in the report can be guaranteed. We are grateful to you for your overall cooperation throughout. We tried our best to live up to your expectation and hope that the business plan fulfills all the requirements. Sincerely yours, Nabid Hassan Kafi_______________________ Ahmed Muntasir Mahin___________________ Md. Al – Amin___________________________ i Jutex Bangladesh ACKNOWLEDGEMENT We take the privilege to extend our acknowledgement and heartfelt gratitude to our respected course instructor, Professor Dr. A.K.M Saiful Majid, who encouraged us to undertake this difficult endeavor and who has helped us all the way to the successful completion of this report with his able guidance, support and counseling. We have tried to incorporate his constructive suggestions and knowledgeable opinions in the...
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...Serves Equipment Corporation Cervus Equipment Corporation: Harvesting a New Future Master of Management Business Strategy Prof. Gerry Kerr November 3, 2014 Main Issue Cervus Equipment Corp, established in 1990s, is committed in acquiring and operating authorized agricultural, industrial and commercial equipment dealerships. Over the past 10 years, it has grown its business substantially. The board of directors is now looking for new growth strategy to reach their goal of $2.5 billion in revenue by 2020-triple in the current size. Cervus Equipment Corp mainly considered the opportunities and threats of expanding international markets and stepping in new industries for further growth. External Analysis PESTEL Analysis Political: based on the regulatory changes in the agriculture industry, Canada Wheat Board regulations encouraged (larger) farmers to market their product directly instead of the wholesaler in the supply chain. The political environment for acquiring businesses haven’t been mature in alternative countries like in New Zealand, Russia and Eastern Europe. Economical: global economy experienced slowdown. But customers’ unparalleled growth in a dynamic business environment made Cervus Equipment gain revenue and profits. With the development of farming technology, farming industry in Western Canada realized fast growth in 2012 and the commodity prices were historical high. The global agricultural machinery market is predicted to increasingly...
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...Strategy 1.1 Objectives 1.2 Target & Segmentation 1.3 Positioning 2.0 Strategies 3.0 Marketing Mix 3.1 Product 3.2 Pricing 3.3 Distribution 3.4 Marketing Communications 3.5 Customer Service 4.0 Recommendations 5.0 Plan of Action 6.0 Bibliography 1.0 Marketing Strategy Westpac: THE ASIA PACIFIC INVASION Westpac have been servicing the Pacific Rim since 1901 with rapid support for its growth strategy of servicing Australian and New Zealand customers with links to Asia, and Asian customers with business interests in Australia and New Zealand. With Capital Market Sales and Foreign Exchange capabilities established in Singapore in 2004, Westpac Group Asia was extended to include Corporate and Institutional Banking in 2005, and most recently, Syndicated and Leverage Finance and Asset Finance. Westpac Singapore and Hong Kong offices have a strong focus on private banking for affluent customers with ties to Australia and New Zealand. While most of these Westpac Institutional Bank operations are headquartered in Singapore to cover the continent, the geographic footprint has continued to expand, incorporating Shanghai and Hong Kong Branches in China and Representative Offices in Mumbai, Jakarta and Beijing. (Westpac Group, 2011, Westpac History, 07-06-2011, URL: ) While Westpac began to seriously look at the Asian market by 2005, it was only through the form of corporate banking and as they have positioned themselves as a prestigious leader with good earnings...
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...Mission Statement 6 Vision 6 SWOT Analysis 7 Strengths: 7 Weaknesses: 9 Opportunities: 10 Threats: 11 MANAGEMENT 11 MARKETING STRATEGY 14 Product 15 Estimated Production Material: 19 FAB Analysis of Product 20 Pricing 21 Promotion 22 Website 24 Advertisement 24 Trade Shows 24 Australia( Trade Shows) 25 Kuwait( Trade Shows) 26 Placement 27 MARKET ENTRY BARRIERS 28 Tariff Barriers 29 Non Tariff Barriers 29 EXPORTING PROCEDURE 29 MODE OF EXPORTING 31 Advantages of Exporting 32 Disadvantages of Exporting 34 MODES OF PAYMENTS 34 Letters of credit 35 FINANCIALS 36 REFERENCES 42 APPENDIX 1 43 APPENDIX 2 47 APPENDIX 3 50 EXECUTIVE SUMMARY The company SHADOWS is aimed to manufacture and export wooden perfumed Blinds which would not only protect the consumers from the sunlight but also satisfy their aesthetic sense. There is much room for such unconventional products. The beauty lies in the making of the oriental product with the skilful hands, which certainly be having a high return and more demand. The geographical location of the host countries will make our product a necessity rather than luxury. Kuwait and Australia are the markets where the potential has to be explored with their disposable income at the higher end. The cosmopolitan culture of the two countries is expected to pay premium on the handmade decorative item. In short we found these two countries optimum from all the above mentioned perspectives. Production...
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