Accounting And Finance For Business - Joyce Corp Ltd

Solution Code : 1ADGB

Question : Accounting Case Study

This Assignment is related to "Accounting Case Study" and experts atGrade Saviours successfully delivered HD quality work within the given deadline.

Accounting Case Study Assignment

Assignment task

Case Study 1

Case Study 2

Case Study 3

These assignments are solved by our professional Accounting at Grade Saviours and the solution are high quality of work as well as 100% plagiarism free. The assignment solution was delivered within 2-3 Days. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Solution:

Case 1

The marker value of the organization in descending order is as follows (‘000):

Super Retail Group Ltd ($10.28 x 197.03 = $2025.47)
Vita Group Ltd ($5.31 x 151.35 = $803.67)
Nick Scali Ltd ($5.93 x 81= $480.33)
Kathmandu Holdings Limited ($1.88 x 201.48 = $378.78)
Oroton Group Ltd ($2.32 x 40.88 = $94.84)

Case 2 Nick Scali Ltd

Holding Period Return from 1st January 2005 to 31st December 2015
NCK: Holding Period Return:
Formula: (Closing price – open price + dividends)/open price

Kathmandu Holdings Limited

Joyce Corp Ltd

Super Retail Group Ltd

Case 3 Nick Scali Ltd 1. a. Growth of EPS for NCK over the five years to 30th June 2015 Basic EPS 2010: 13.9 Basic EPS 2015: 21.1 Growth of EPS [(21.1/13.9)^1/5] – 1 = 8.71% b. The Asset Turnover Ratio, Net Profit Margin, Net Debt to Equity Ratio, Leverage Ratio and Return on Equity for the company for both financial years 2009/10: AUD$’000 2014/15: AUD$’000 The Net Profit Margin = Net Profit/ Revenue x 100 2009/10: (11511/96365) x 100% = 11.95% 2014/15: (17408/155743) x 100% = 11.18% Leverage Ratio = Average Assets/ Average Equity x 100 2009/10: {[(41075 + 32171)/2]/ [(21430 + 18424)/2]} x 100 = 183.79% 2014/15: {[(96337 + 80426)/2]/ [(46226 + 40130)/2]} x 100 = 204.69% Return on Equity = Net Profit/ Average Equity x 100 2009/10: 11511/ [(21430 + 18424)/2] x 100% = 57.77% 2014/15: 17408/ [(46226 + 40130)/2] x 100% = 40.32% Net Debt to Equity Ratio = Total Debt – Cash/ Equity x 100 2009/10: [(0 – 17312)/ 21430] x 100 = -80.73% 2014/15: [(12062 – 33680)/ 46226] x 100 = -46.77% Asset Turnover Ratio = Revenue/ Average Assets 2009/10: 96365/ [(41075 + 32171)/ 2] = 2.63x 2014/15: 155743/ [(96337 + 80426)/ 2] =1.76x 2. For the purpose of purchasing plant and equipment if Nick had raised $50 million, ROE will not change. However the Debt to Equity ratio of the organization will undergo a change. Assets: Increase Liabilities: Increase Equity: No change 2014/15: Return on Equity = Net Profit/ Average Equity x 100 17408/ [(46226 + 40130)/2] x 100% = 40.32% 2014/15: The Net Debt to Equity = Total Debt + 50000 – Cash/ Equity x 100 {[(12062 + 50000) – 33680]/ 46226} x 100 = 61.40% For the purpose of purchasing plant and equipment if Nick had raised $50 million, ROE will not change. However the Debt to Equity ratio of the organization will undergo a change. Assets: Increase Liabilities: No change Equity: Increase 2014/15 Return on Equity = [Net Profit/ (Average Equity + 50000)] x 100 17408/ {[(46226 + 40130)/2] + 50000} = 18.68% 2014/15 The Net Debt on Equity Ratio = [(Total Debt – Cash)/ (Equity + 50000)] x 100 [(12062 – 33680)/ (46226 + 50000)] x 100 = (22.46%) Kathmandu Holdings Limited 1. a. Growth of EPS for KHL over the five years to 30th June 2015 Basic EPS in 2010: 0.3 Basic EPS in 2015: 10.1 Growth of EPS [(10.1/0.3)^1/5] – 1 = 102.04% b. The company KMD for both financial years 2009: NZ$’000 2010: NZ$’000 Leverage Ratio = Average Assets/ Average Equity x 100 2009/10: {[(319414 + 349385)/2]/ [(239127 + 132686)/2]} x 100 = 179.88% 2014/15: {[(430451 + 408297)/2]/ [(313314 + 302146)/2]} x 100 = 136.28% Asset Turnover Ratio = Revenue/ Average Assets 2009/10: 245812/ [(319414 + 349385)/2] = 0.73x 2014/15: 409372/ [(430451 + 408297)/2] = 0.98x The Net Profit Margin = Net Profit/ Revenue x 100 2009/10: (5292/245812) x 100 = 2.15% 2014/15: (33868/409372) x 100 = 8.27% Return on Equity = Net Profit/ Average Equity x 100 2009/10: [5292/ (239127 + 132686)/2] x 100 = 2.85% 2014/15: [33868/ (313314 + 302146)/2] x 100 = 11.01% Net Debt to Equity Ratio = Total Debt – Cash/ Equity x 100 2009/10: [(53965 – 4736)/ 239127] x 100 = 20.59% 2014/15: {[(39 + 70976) – 1700]/ 313314} x 100 = 22.12% 2. For the purpose of purchasing plant and equipment if KHL had raised $50 million, ROE will not change. However the Debt to Equity ratio of the organization will undergo a change. Assets: Increase Liabilities: Increase Equity: No change 2014/15: Return on Equity = Net Profit/ Average Equity x 100 [33868/ (313314 + 302146)/2] x 100 = 11.01% 2014/15: The Net Debt to Equity = {[(Total Debt + 50000) – Cash]/ Equity} x 100 {[(39 + 70976 + 50000) – 1700]/ 313314} x 100 = 38.08% 1. For the purpose of purchasing plant and equipment if KHL had raised $50 million, ROE will not change. However the Debt to Equity ratio of the organization will undergo a change. Assets: Increase Liabilities: No change Equity: Increase 2014/15 Return on Equity = [Net Profit/ (Average Equity + 50000)] x 100 [33868/ (313314 + 302146)/2 + 50000] = 9.47% 2014/15 The Net Debt on Equity Ratio = [(Total Debt – Cash)/ (Equity + 50000)] x 100 [(39 + 70976) – 1700)/ (313314 + 50000)] x 100 = 19.08% Joyce Corp Ltd 1. Growth of EPS for JCL over the five years to 30th June 2015 Basic EPS 2010: -39.4 Basic EPS 2015: 16.2 EPS Growth [(16.2/ (-39.4))^1/5] – 1 = -183.7% b. The Asset Turnover Ratio, Net Profit Margin, Net Debt to Equity Ratio, Leverage Ratio and Return on Equity for the company for both financial years 2009/10: AUD$’000 2014/15: AUD$’000 The Net Profit Margin = Net Profit/ Revenue x 100 2009/10: (-8147/21990) x 100 = (37.05%) 2014/15: (5221/34737) x 100 = 15.03% Leverage Ratio = Average Assets/ Average Equity x 100 2009/10: {[(44440 + 45407)/2]/ [(15691 + 24243)/2]} x 100 = 224.99% 2014/15: {[(45814 + 36618)/2]/ [(26450 + 22730)/2]} x 100 = 167.61% Asset Turnover Ratio = Revenue/ Average Assets 2009/10: 21990/ [(44440 + 45407)/ 2] = 0.49x 2014/15: 34737/ [(45814 + 36618)/ 2] = 0.84x Return on Equity = Net Profit/ Average Equity x 100 2009/10: {(-8147)/ [(15691 + 24243)/2]} x 100 = (40.78%) 2014/15: 5221/ [(26450 + 22730)/2] x 100 = 21.23% Net Debt to Equity Ratio = Total Debt – Cash/ Equity x 100 2009/10: [(12602 + 286) – 4180)/ 15691] x 100 = 55.5% 2014/15: [(22 + 5300) – 5962)/ 26450] x 100 = (2.42%) 2. For the purpose of purchasing plant and equipment if JCL had raised $50 million, ROE will not change. However the Debt to Equity ratio of the organization will undergo a change. Assets: Increase Liabilities: Increase Equity: No change 2014/15: Return on Equity = Net Profit/ Average Equity x 100 5221/ [(26450 + 22730)/2] x 100% = 21.23% 2014/15: The Net Debt to Equity = Total Debt + 50000 – Cash/ Equity x 100 {[(22 + 5300 + 50000) – 5962]/ 26450} x 100 = 186.62% 3. For the purpose of purchasing plant and equipment if JCL had raised $50 million, ROE will not change. However the Debt to Equity ratio of the organization will undergo a change. Assets: Increase Liabilities: No change Equity: Increase 2014/15 Return on Equity = [Net Profit/ (Average Equity + 50000)] x 100 5221/ {[(26450 + 22730)/2] + 50000} = 6.99% 2014/15 The Net Debt on Equity Ratio = [(Total Debt – Cash)/ (Equity + 50000)] x 100 [(22 + 5300) – 5962]/ (26450 + 50000)] x 100 = (0.84%) Super Retail Group Ltd 1. EPS growth of SRGL five years to 30th June 2015 Basic EPS 2010: 34 Basic EPS 2015: 49.4 EPS growth [(49.4/34)^1/5] – 1 = 7.76% b. The Net Profit Margin, Asset Turnover Ratio, Leverage Ratio, Net Debt to Equity Ratio and Return on Equity for the company for both financial years 2009/10: AUD’000 2014/15: AUD $m Net Debt to Equity Ratio = Total Debt – Cash/ Equity x 100 2009/10: [(9008 + 100000) – 30220)/ 270557] x 100 = 29.12% 2014/15: [(389.8 + 2.2) – 13.1)/ 765.3] x 100 = 49.51% Asset Turnover Ratio = Revenue/ Average Assets 2009/10: 938765/ [(522246 + 437771)/ 2] = 1.95x 2014/15: 2241.2/ [(557.7 + 555.4)/ 2] = 4.03x Leverage Ratio = Average Assets/ Average Equity x 100 2009/10: {[(522246 + 437771)/2]/ [(270557 + 156354)/2]} x 100 = 224.88% 2014/15: {[(557.7 + 555.4)/2]/ [(765.3 + 760.4)/2]} x 100 = 72.96% Return on Equity = Net Profit/ Average Equity x 100 2009/10: 37305/ [(270557 + 156354)/2]} x 100 = 17.48% 2014/15: 82.6/ [(765.3 + 760.4)/2] x 100 = 10.83% The Net Profit Margin = Net Profit/ Revenue x 100 2009/10: (37305/938765) x 100 = 3.97% 2014/15: (82.6/2241.2) x 100 = 3.69% 2. For the purpose of purchasing plant and equipment if SRGL had raised $50 million, ROE will not change. However the Debt to Equity ratio of the organization will undergo a change. Assets: Increase Liabilities: Increase Equity: No change 2014/15: Return on Equity = Net Profit/ Average Equity x 100 2014/15: 82.6/ [(765.3 + 760.4)/2] x 100 = 10.83% 2014/15: The Net Debt to Equity = Total Debt + 50 – Cash/ Equity x 100 {[(2.2 + 389.8 + 50) – 13.1]/ 765.3} x 100 = 56.04% 3. For the purpose of purchasing plant and equipment if SRGL had raised $50 million, ROE will not change. However the Debt to Equity ratio of the organization will undergo a change. Assets: Increase Liabilities: No change Equity: Increase 2014/15 Return on Equity = [Net Profit/ (Average Equity + 50)] x 100 {82.6/ [(765.3 + 760.4)/2] + 50} x 100 = 10.16% 2014/15 The Net Debt on Equity Ratio = [(Total Debt – Cash)/ (Equity + 50)] x 100 [(2.2 + 389.8) – 13.1]/ (765.3 + 50)] x 100 = 46.47%

Find Solution for Accounting assignment by dropping us a mail at help@gradesaviours.com along with the question’s URL. Get in Contact with our experts at Grade Saviours and get the solution as per your specification & University requirement.

Hey MAS, I need Assignment Sample of

Looking For Complete Assignment Sample

Get It On WhatsApp