BIZ201 Assessment 3 Brief XXXXXXXXXXPage 1 of 10
ASSESSMENT BRIEF
Subject Code and Title BIZ201 Accounting for Decision Making
Assessment Case Study Part A
Individual/Group Individual
Length 1500 words
Learning Outcomes
) Apply relevant accounting concepts to simple
usiness scenarios.
c) Interpret and analyse the information contained
in general purpose financial statements, to
evaluate the overall financial position and
performance of a business.
Submission By 11:55 pm AEST/AEDT Sunday of Module 4 (Week 8)
Weighting 30%
Total Marks 100 marks
Context:
This assessment is aimed at consolidating knowledge from Modules 1-3. By prescribing this
assessment, you are able to reflect on the understanding of accounting concepts and be
able to apply them to business scenarios like given in this case study.
Instructions:
1. The case study below presents a business scenario. Answer questions in Part 1 and 2 at
the end of this case study.
2. Submit two files; Excel Workbook and the Business Report.
3. For calculation questions show all workings through appropriate Excel formulas. Copy
pasted numbers without appropriate Excel formulas will not be accepted.
4. Submit your assessment files using the following naming convention:
First Name_Last Name_BIZ201_Case_Study A_Assessment3_Workbook.xlsx
First Name_Last Name_BIZ201_Case_Study A_Assessment3_Report.doc
BIZ201 Assessment 3 Brief XXXXXXXXXXPage 2 of 10
Crystal Hotel Pty Ltd is a privately owned 3.5 stars hotel located in Pa
amatta CBD in Sydney. The
Hotel consists of 160 rooms with maximum capacity of 350 guests, a restaurant with capacity of 150
guests, a function room with maximum capacity of 250 guests and a conference room with
maximum capacity of 200 guests. The average price per room per night is $150.
While the hotel is located in a very popular location and close proximity to a river and the city
centre, it is becoming quite out-dated. The owners rely heavily on their corporate clientele. Clients
usually use the hotel for their expat employees. Due to long-term contracts, they pay on credit
with invoices being issued at the end of each month. The hotel is often faced with outstanding
invoices. The owners have so far tolerated it as it usually occurs with their long-term clients.
Additionally, to the accommodation services, they often use hotel facilities for their functions and
conferences.
The hotel is constantly having difficulties retaining a good quality staff as they always get junior
personnel, which once gaining experience will usually leave for better opportunities in hotels with
higher ratings. The biggest issue is to retain high quality personnel in the hotel restaurant, especially
a chef.
The owners would like to increase the hotel star rating by renovating or refu
ishing the hotel and
improving their services. They are thinking about building a Wellness Centre on the rooftop of the
hotel, which would include a massage treatment room, gym, spa, sauna and an outdoor pool.
As new plans will require quite extensive capital investment, the owners would like to know where
they stand financially before making any major decisions. You have been appointed to analyse their
financial statements and to give them an insight on which areas should be improved and analysed
further.
You are expected to conduct the financial statement analysis in Excel workbook and then use your
findings in creating a business report to be submitted to the client.
Crystal Hotel Case Study
BIZ201 Assessment 3 Brief XXXXXXXXXXPage 3 of 10
Required:
Part 1 – to be done in Excel Workbook
This Excel Workbook is available on Blackboard under assessment section. Download it, perform
calculations on it and submit it.
1. Vertical analysis of financial statements:
a. Conduct Vertical Analysis of Crystal Hotel’s Statement of Financial Position as at 30
June 2018 using the Vertical Analysis SOFP worksheet. Round your numerical
answers to two decimal places.
. Conduct Vertical Analysis of Crystal Hotel’s Statement of Profit and Loss for the year
ended 30 June 2018 using Vertical Analysis P&L worksheet. Round your numerical
answers to two decimal places.
2. Conduct Ratio Analysis using Ratio Analysis worksheet. Round your numerical answers to
two decimal places.
Part 2 – to be included in the Business report
3. Using the Income Statement Vertical Analysis prepared in Excel workbook, conduct Income
Statement comparative analysis to the industry benchmarks included in Table 1 and Table 2
of the Appendix.
Comment on how the business is performing comparing to the industry.
Include comments on Revenue, Cost of sales (excluding personnel costs), Personnel costs,
unallocated Operating costs and Total costs proportions.
Make recommendations on areas that need improvements or further investigation, based
on the results of your comparative analysis.
4. Using the results of the Ratio Analysis in Excel workbook, comment on Profitability,
Efficiency, Liquidity and Solvency of the business. With reference to the industry data
provided, make recommendations where appropriate.
5. There are additional industry specific performance indicators and benchmarks that the hotel
could use when comparing itself to the industry. Conduct a research and recommend 3
additional industry specific benchmarks the hotel could use in their comparative analysis.
Include a
ief explanation of each benchmark you are recommending including formula
where appropriate.
BIZ201 Assessment 3 Brief XXXXXXXXXXPage 4 of 10
Appendix – Industry Data
Table 1 Vertical Analysis of Statement of Profit and Loss based on Number of Rooms
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Table 2 Vertical Analysis of Statement of Profit and Loss based on Average Room Price Range
BIZ201 Assessment 3 Brief XXXXXXXXXX XXXXXXXXXXPage 6 of 10
Learning Ru
ic: Assessment 3
Assessment
Attributes
Fail
(Unacceptable)
0 - 49
Pass
(Functional)
50 - 64
Credit
(Proficient)
65 - 74
Distinction
(Advanced)
75 - 84
High Distinction
(Exceptional)
XXXXXXXXXX
Grade
Description
(Grading Scheme)
Fail grade will be
awarded if a student is
unable to demonstrate
satisfactory academic
performance in the
subject or has failed to
complete required
assessment points in
accordance with the
subject’s required
assessment points.
Pass is awarded for work
showing a satisfactory
achievement of all
learning outcomes and an
adequate understanding
of theory and application
of skills. A consistent
academic referencing
system is used and
sources are appropriately
acknowledged.
Credit is awarded for work
showing a more than
satisfactory achievement of
all learning outcomes and a
more than adequate
understanding of theory
and application of skills. A
consistent academic
eferencing system is used
and sources are
appropriately
acknowledged.
Distinction is awarded for
work of superior quality
in achieving all learning
outcomes and a superior
integration and
understanding of theory
and application of skills.
Evidence of in-depth
esearch, reading,
analysis and evaluation is
demonstrated. A
consistent academic
eferencing system is
used and sources are
appropriately
acknowledged.
High Distinction is
awarded for work of
outstanding quality in
achieving all learning
outcomes together with
outstanding integration
and understanding of
theory and application of
skills. Evidence of
in‐depth research,
eading, analysis, original
and creative thought is
demonstrated. A
consistent academic
eferencing system is
used and sources are
appropriately
acknowledged.
Application of Vertical
analysis of financial
statements
SLO Addressed:
c) Interpret and
analyse the
information
contained in
general
purpose
financial
Demonstrates no
application of vertical
analysis of Balance Sheet
and Income Statement.
Excel formulas are not
used for calculation.
Demonstrates limited
application of vertical
analysis of Balance Sheet
and Income Statement. Few
co
ect Excel formulas are
used for calculation.
Demonstrates consistent
application of vertical analysis
of Balance Sheet and Income
Statement. Not all Excel
formulas used for calculation
are co
ect.
Demonstrates an advanced
application of vertical
analysis of Balance Sheet
and Income Statement.
Most Excel formulas used
for calculation are co
ect.
Consistently demonstrates
an advanced application of
vertical analysis of Balance
Sheet and Income
Statement. All Excel
formulas used for
calculation are co
ect.
http:
www.tua.edu.au/media/50742/a240_grading-scheme.pdf
BIZ201 Assessment 3 Brief XXXXXXXXXX XXXXXXXXXXPage 7 of 10
statements, to
evaluate the
overall financial
position and
performance of
a business.
22%
Calculation of
appropriate financial
atios
SLO Addressed:
c) Interpret and
analyse the
information
contained in
general
purpose
financial
statements, to
evaluate the
overall financial
position and
performance of
a business.
16%
Demonstrates no evidence
of use excel formulas and
elevant worksheets to
calculate appropriate
atios.
Demonstrates limited
evidence of use excel
formulas and relevant
worksheets to calculate
appropriate ratios.
Demonstrates consistent
evidence of use excel
formulas and relevant
worksheets to calculate
appropriate ratios.
Demonstrates an advanced
evidence of use excel
formulas and relevant
worksheets to calculate
appropriate ratios.
Consistently demonstrates
an advanced evidence of
use excel formulas and
elevant worksheets to
calculate appropriate ratios.
Comparison of Vertical
analysis of financial
statements calculations
with industry values
including comments on
various types of costs
No understanding of use
Vertical Analysis of
financial statements
calculations prepared in
Excel for comparison to
industry values provided in
the Appendix.
Limited understanding of
use Vertical Analysis of
financial statements
calculations prepared in
Excel for