Essay on Accounting 500 Part 2 Assignment Group Final Answers

Submitted By Helal-Alhelal
Words: 2679
Pages: 11
Open Document
ACCT 500
FINANCIAL & MANAGERIAL ACCOUNTING
Assignment – Part 2

:

Dr. Hellal Abdulwahab AlHellall -

Gulf University
For Science & Technology

1. Draw up a Common Size Consolidated Income Statement for Vodafone for 2012, 2013 and 2014. You should base your work on the Smith and Nephew class example. The Consolidated Income Statement itself is on page 96 of the Vodafone report.

2014 (£m)

2013 Restated (£m)
2012 Restated (£m)
2014 (£m) %

2013 Restated (£m) %
2012 Restated (£m) %
Revenue
38,346
38,041
38,821
100.00
100.00
100.00
Cost of sales
-27,942
-26,567
-27,201
-72.87
-69.84
-70.07
Gross profit
10,404
11,474
11,620
27.13
30.16
29.93
Selling and distribution expense
-3,033
-2,860
-2,755
-7.91
-7.52
-7.10
Administrative expenses
-4,245
-4,159
-4,031
-11.07
-10.93
-10.38
Share of results of equity accounted associates and joint ventures
278
575
1,129
0.72
1.51
2.91
Impairment losses
-6,600
-7,700
-4,050
-17.21
-20.24
-10.43
Other income and expense
-717
468
3,705
-1.87
1.23
9.54
Operating (loss)/profit
-3,913
-2,202
5,618
-10.20
-5.79
14.47
Non-operating income and expense
-149
10
-162
-0.39
0.03
-0.42
Investment income
346
305
456
0.90
0.80
1.17
Financing costs
-1,554
-1,596
-1,768
-4.05
-4.20
-4.55
(Loss)/profit before taxation
-5,270
-3,483
-4,144
-13.74
-9.16
-10.67
Income tax credit/(expense)
16,582
476
705
43.24
1.25
1.82
Profit/(loss) for the financial year from continuing operations
11,312
3,959
3,439
29.50
10.41
8.86
Profit for the financial year from discontinued operations
48,108
4,616
3,555
125.46
12.13
9.16
Profit for the financial year
59,420
657
6,994
154.96
1.73
18.02

2. Outline the three most important points – in your opinion – to emerge from your Common Size Consolidated Income Statements. You should write about 3-5 sentences per individual point (5 sentences is the absolute maximum).
Common size consolidated income statement analysis:
1. Vodafone should take necessary actions to manage the negative values regarding profits before interest and tax figures through 2013 ~ 2014, also working more on their net profit is very important since the big improvement happened in 2014 was a result of selling assets in united states, so they need to work harder on their operating profits.

2. Vodafone should take necessary actions to reduce the overall cost of goods sold as one of main elements to increase the net profit and this can be done by finding more suppliers who could provide Vodafone with better prices or at least variety of products with different prices based on the service nature. 3. Vodafone has clear issue due to impairment loss percentage starting from 2012 then big change by almost the double in 2013 then smaller percentage through 2014 which is raising a big question regarding the long term investment strategy for Vodafone.

3. Draw up a Common Size Consolidated Statement of Financial Position for Vodafone for 2012, 2013 and 2014. You should base your work on the Smith and Nephew class example. The Consolidated Statement of Financial Position itself is on page 98 of the Vodafone report. You do not need to look at prior year annual reports – the comparative figures given on that page are sufficient.
Common size SOFP assets

Common Size

2014 (£m)
2013 Restated (£m)
2012 Restated (£m)

2014 (£m) %
2013 Restated (£m) %
2012 Restated (£m) %
Non-Current assets

Goodwill
23,315
24,390
27,816

19.14
17.63
20.54
Other intangible assets
23,373
19,749
18,762

19.18
14.28
13.85
Property, plant and equipment
22,851
17,584
16,008

18.75
12.71
11.82
Investments in associates and joint ventures
114
46,447
47,682

0.09
33.58
35.20
Other investments
3,553
773
790

2.92
0.56
0.58
Deferred tax assets
20,607
2,848
1,894

16.91
2.06
1.40
Post-employment benefits
35
52
31

0.03
0.04
0.02
Trade and other receivables
3,270
4,832
3,436

2.68
3.49
2.54
Total Non-Current assets
97,118
116,675
116,419

79.71
84.35
85.95

Current assets
Show More

Related Documents: Essay on Accounting 500 Part 2 Assignment Group Final Answers

ACCT252 14S2c Essay

252 S2 College of Business and Law COURSE OUTLINE Law of Business Contracts Semester 2 Department of Accounting & Information Systems Course Supervisor: Associate Professor Maree Chetwin Email: maree.chetwin@canterbury.ac.nz 14 ACCT252-14 S2 Course Outline PLEASE NOTE It is the student’s responsibility to retain all course outlines for any future assessment by professional bodies or other institutions 2 ACCT252-14 S2 1. Course Outline 3 COURSE OBJECTIVES If a person has agreed to purchase…

Words 2098 - Pages 9

Essay on Syllabus: Management and Outline Form Response

more than 500 employees; and only 4% of the 21 million US enterprises that filed tax returns in 1992 reported gross revenues greater than $1 million. Obviously, there is a lot more to entrepreneurship than just starting a company. This course is about how to build an entrepreneurial company – the challenges and hurdles that must be overcome in order to make the transition from an entrepreneurial startup to an organization capable of sustained and profitable growth…on the way to $50 or $500 million…within…

Words 4509 - Pages 19

Adjusting Entries Essay

ISSUES IN ACCOUNTING EDUCATION Vol. 27, No. 2 2012 pp. 493–524 American Accounting Association DOI: 10.2308/iace-50124 How Adjusting Entries Affect the Quality of Financial Reporting: The Case of Frosty Co. Jason C. Porter ABSTRACT: Recent accounting scandals have emphasized the need to think beyond debits and credits. Accounting students must understand the effects of transactions on a company’s financial position, as well as the pressures and incentives they will someday face to misrepresent…

Words 14057 - Pages 57

Study Guide Essay

BAM 411 Human Resource Management Text: A Framework for Human Resource Management ISBN-13: 978-0-13-257614-7 Author(s): Gary Dessler Publisher: Pearson 925 North Spurgeon Street, Santa Ana, CA 92701 Phone: 714-547-9625 Fax: 714-547-5777 www.calcoast.edu 10/14 Study Guide Seventh Edition, 2013 BAM 411 Human Resource Management Message From the President W elcome to California Coast University. I hope you will find this course interesting and useful throughout your career. This course…

Words 25132 - Pages 101

Tasteless Tea Company Essay

ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 1 2011 pp. 163–179 American Accounting Association DOI: 10.2308/iace.2011.26.1.163 Tasteless Tea Company: A Comprehensive Revenue Transaction Cycle Case Study Ronald F. Premuroso, William S. Hopwood, and Somnath Bhattacharya ABSTRACT: It is challenging for students taking the introductory accounting information systems AIS course to envision how to apply the topics and concepts learned during the course in real-world situations. The motivation for…

Words 8228 - Pages 33

Acca Per Questions Essay

answering challenge questions answering challenge questions [SECTION TITLE] 1 2 contents Practical exPerience requirements (Per) challenge questions samPle answers 01 03 04 05 08 10 13 15 17 19 Demonstrate the application of professional ethics, values and judgement Raise awareness of non-financial risk Manage self Communicate effectively Improve departmental performance Prepare financial statements for external purposes Contribute to budget planning and production Evaluate potential…

Words 5195 - Pages 21

Essay on Accounting Information System 12

CHAPTER 2 * Overview of Business Processes SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 2.1 Table 2-1 lists some of the documents used in the revenue, expenditure, and human resources cycle. What kinds of input or output documents or forms would you find in the production (or conversion) cycle? Students will not know the names of the documents but they should be able to identify the tasks about which information needs to be gathered. Here are some of those tasks:…

Words 4106 - Pages 17

Jack: Case Study and Emerging Enterprise Essay

MANAGING THE EMERGING ENTERPRISE ENTP 6378.501 Class Meeting: Mondays 7:00 – 9:45 PM, SOM 2.107 Final Exam: Final Exam case due on 5:00 PM December 15th Office Hours: Mon/Wed 3:00 – 3:45 PM or by appointment FALL 2014 Dr. Joseph C. Picken SOM 4.212 Email: jpicken@utdallas.edu Phone: (972) 883-4986 COURSE OBJECTIVES: Management guru Peter Drucker once observed that: “Unless a new venture develops into a business and makes sure of being ‘managed’, it will not survive no matter how…

Words 8292 - Pages 34

Activity-Based Costing and Other Cost Management Tools Essay examples

and products and services that generate revenue. After reading this chapter you should be able to: I. Describe the purposes of cost management systems. II. Explain the relationship among cost, cost object, cost accumulation, and cost assignment. III. Distinguish among direct and indirect costs. IV. Explain the major reasons for allocating costs. V. Identify the main types of manufacturing costs: direst materials, direct labor, and indirect production costs. VI. Explain…

Words 4936 - Pages 20

Essay on Example: Management Accounting and Costs

ACCT7107 ACCT7107 MANAGEMENT ACCOUNTING AND CONTROL DISCUSS BRIDGETON INDUSTRIES ACF AND THE CASE APPROACH Background Identify/define the problems and issues  Analysis to support the problems and issues you have identified   Lecture 4: Cost system refinement II: Activity-based costing; Process Costing Quantitative? Qualitative?    Recommendations: Alternative actions/recommendations that come out of your analysis and what is your preferred action plan?…

Words 4635 - Pages 19