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ACCT11059: Using Accounting for Decision Making
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Assignment 1
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Samantha Anderson s0230032
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Due April 7th 2015
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Step 1: Creating My Blog
Step 2: Identify Clearly What Your Firm Actually Does
I also posted this to my blog:
http://s0230032.blogspot.com.au/2015/03/key-concepts-and-questions.html
Top Form International is a company
that manufactures ladies lingerie for market distribution. They do not have an
online store, which I found to be odd as I have literally never come across a
company the does not trade online, and I am quite the avid online shopper. Initially,
upon downloading the 2014 Annual Report for Top Form, I was overwhelmed by the
sheer size of the document: 110 pages is a lot of reading! If I had tried to
tackle this document before I attended the Week 2 lecture I would have been
quite flabbergasted as the only experience I have with accounting was in grade
10 business education.
Areas I had difficulty
understanding
Upon first read, I was having
trouble comprehending that when a figure is written in brackets on the
statement of Profit or Loss, this means it is a liability. I just looked at it
and had no clue as to why it was written that way. But then when I was reading
the Consolidated Statement of Cash Flows it was reversed: increase/gain was in
brackets. I have no comprehension of what is going on with these figures, it
just confuses me. I haven’t even done my own taxes before; my experience with
financials is quite minimal. Something else I also struggled with was the fact
that it is written in Hong Kong dollars. I have no experience with foreign
currencies. I understand that it’s the same principles as with Australian
dollars, if a value is numerically higher than another it means there is more,
but I couldn’t make an informed decision as to whether the figures given
described a high volume company, a small company or somewhere in between as I
have no idea what the conversion rate between Hong Kong and Australian dollars
is. The consolidated reports were a little baffling. I feel as if I was being
provided with too much information so that I would think the company is in a
better financial position than it really is.
Areas that seem most important to
me, key challenges and coping strategies
Areas that are important to me
about the business are the inflow and outflow of cash as well as the volume of
liabilities the company holds. I can see that the company’s equity has
increased compared to the previous financial year, as they had made a loss in
the previous financial year. It appears
the company has made a turnaround, having reported a loss overall for 2013 and
are now quite profitable. The challenge is keeping this up. It would appear
from my untrained accounting eye that the company sold off some assets such as
property in order to purchase investment properties in the hopes of generating
more income. The company’s current
strategy appears to be generating more income from other avenues in order to
have the capital available to increase stock and become a higher volume
business.
Comparing
and Contrasting Companies
Know Your Firm
Here is the link to my blog pertaining
to knowing my firm: http://s0230032.blogspot.com.au/2015/03/getting-to-know-top-form-international.html
Here are also some links to
some of my comments on other’s blogs:
Here is the link to my post
about my favourite blogs:
This post contains the links to
my top 3 blogs and it also contains my rationale as to why they were my
favourite.
Here is the link to my post
about my 3 favourite blogs in the Blog Links forum:
Great draft Samantha! i can see that everything has been filled out except i could not locate your company's spreadsheets? Overall keep up what you're doing as it is great!
ReplyDeleteAlso sorry i cant be much help either! :)
ReplyDelete