Separation of Data and Report Areas
The particular requirement of this question is naming the cells in the spreadsheets. The reference address of the cells is replaced by names so that it can be understood and correlated with the statements that are provided in the case calculations (Cumming, 2016). The following example shows the particular process to name cells in the spreadsheet along with the proper justification:
|
Calculation of Net Profit:- |
|
|
Particulars |
Amount |
|
Sales Revenue |
$15,000 |
|
Less: Cost of Goods Sold |
$2,000 |
|
GROSS PROFIT |
$13,000 |
|
Less: Operating Expenses |
$1,000 |
|
EBIT |
$12,000 |
|
Less: Interest expenses |
$1,500 |
|
EBT |
$10,500 |
|
Less: Tax Expenses |
$700 |
|
NET PROFIT |
$9,800 |
The particular requirement in this question is that the particular way in which the negative numbers are represented in a spreadsheet has been asked to clarify. The negative numbers are represented in brackets as they signify the amount that has to be deducted from a positive figure (Cumming, 2016). This can be justified with the following example; the negative numbers have been shown in red brackets:
It is much important for an accountant for designing spreadsheets in such a format that the data entry area is different from the report area for the purpose of mitigating the occurrence of errors in the financial computations. The designing of the spreadsheet is a key measure for the successful execution of the task being carried out both in terms of short-term and long-term. The particular advantage provided by the spreadsheet is that it forms an effective tool in the hands of the user for enhancing, analyzing and obtaining the desired quality of performance and the decision-making procedure within the business firm. Improper information that is if generated by the spreadsheet may lead to financial decision making depending on that faulty information that may affect the business drastically. Thus, such a risk can be mitigated by the proper formatting of the spreadsheet that starts with the proper separation of the data and report areas (Cumming, 2016).
The particular requirement that has been stated in this question is that the understanding of the IF statement has been aimed at. The advantages of this particular logical function is that the user can utilize the if function for setting the command, which will in turn help in identifying the fact that all the conditions have been properly adhered to. In such a case, the matching of the particular conditional statement with the command would result in the outcome as per the logical value. If the case is such that the condition does not match then the outcome would be somewhat different from the logical value.
The management of the inventory of a particular organization can be handled by two major procedures that is the perpetual inventory system and the periodic inventory system (Patil & Singh, 2016). The essential differences between the perpetual inventory system and the periodic inventory system can be listed down as follows:
|
Perpetual Inventory System |
Periodic Inventory System |
|
1. The perpetual inventory systems involves updating the general ledger regularly with the occurrence of inventory related transactions 2. The perpetual inventory system has to be mandatorily computerized due to the complex nature of book keeping involved in the particular system 3. The perpetual inventory system involves both raw materials inventory account and the merchandise account |
1. The periodic inventory system involves formation of no cost of goods sold account until there is a physical count which is utilized for deriving the cost of goods sold 2. The simplicity of the periodic inventory system allows the manual usage of this particular inventory system 3. Under a periodic inventory system all he purchases are recorded in the purchases asset account |
IF Functions
One of the well-known and globally used tools for the purpose of carrying out the accounting computations and other related calculations is the spreadsheet. A spreadsheet facilitates the utilization of relevant formula and appropriate data for generating a report of the desired quality. The cells also can be made hidden or visible depending upon the requirements of the user. The facilities like the providence of the data formatting in terms of font size, texts and numbers ease the user in forming a quality report. Graphs and charts can also be used for designing the required report.
The online retail business has increasingly come to depend on the ability of the computers. eBay being a leading e -commerce firm has established business through the force of internet supported by computers. eBay has been a successful online retailer firm and the success of the firm has been strongly founded on the facility provided by the computers. The entire computerized market that provides the customer to go through the vast range of products that has been showcased in the website owned by the retailer firm. The providence of a computer also has enabled retailer firms like eBay to carry their business to the customers placed in different parts of the world. However, the availability of internet is also necessary for successful online retailing (Davari, Iyer & Rokonuzzaman, 2016).
Introduction
Qantas Airways Limited has been a domestic and international service provider that has been operating in the global boundaries. Qantas Airways is based in Australia. It had been identified as one of the major airline companies that facilitate the providence of economical and elite airline services. The particular airline company has also been dealing in airline courier services. The particular company has also been undertaking programs like airhostess training and development programs so that the newcomers can join the industry. In order to assess whether the company is suitable for shareholder investment the financial statements of the company has been analyzed. The financial statements explain the financial position of the company and the performance delivered by it (Chandra 2014).
Analyzing the financial statements of the company
The financial year of 2012, has been a difficult year for Qantas Airways as it has incurred a profit after tax of $95 million. This was the year when the company had incurred its highest bill of $4329 million. The amount was as high as 18% greater than the fuel bill that had been realized in the financial year of 2022.
Perpetual versus Periodic Systems
The financial year of 2013 had been featured by a turnaround, as the company did incur a profit before tax of $192 million and the profit after tax amounted to $6 million. The major event undertake in the financial year of 2013 is that the company went into partnership with Emirates.
The financial year of 2014, observed a loss of $2.8 billion. This was majorly due to the Qantas Transformation program. Though the figures look bad, the financial year of 2014 marked the revival phase of the company.
The financial year of 2015, marked the successful business by company as the profit before tax amounted to $975 million and the profit after tax amounted to $894 million.
Starting from the financial year of 2016, the performance curve of the company signified a rising trend and the financial year of 2017 followed the same trend.
Significant ratios – An overview into the company performance
|
Qantas Airways Limited |
||||
|
Financial Year |
Net Profit/Loss ($M) |
Total Assets ($M) |
Average Shareholder’s Equity ($M) |
Net Sales ($M) |
|
2012 |
-244 |
21,178 |
6,020 |
15,724 |
|
2013 |
6 |
20,200 |
5,921.50 |
15,902 |
|
2014 |
-2922 |
17,318 |
4,377.50 |
15,352 |
|
2015 |
558 |
17,530 |
3,166.50 |
15,816 |
|
2016 |
1029 |
16,705 |
3,353.50 |
16,200 |
|
2017 |
853 |
17,221 |
3,396.00 |
16,057 |
|
Significant Ratios |
||||||
|
Financial Year |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
|
Return on Investment |
-0.01 |
0.00030 |
-0.17 |
0.03 |
0.06 |
0.050 |
|
Return on Equity |
-0.041 |
0.00101 |
-0.67 |
0.18 |
0.31 |
0.251 |
|
Net Profit Margin |
-0.016 |
0.00038 |
-0.19 |
0.04 |
0.06 |
0.053 |
The return on investment component that has been calculated in the above table reflect the fact that the return on investment that has been obtained by the company has gradually become stable especially from the year of 2015. This further indicates that the management of the company has been managing stable returns from the investment projects.
The return on equity component also has been following a rising trend indicating that the company has been ensuring the optimum utilization of the equity funds. However, the financial year of 2017, marks a drop in the return on equity.
The Net profit margin further reveals that the company has been following an uprising trend from the financial year of 2015, which signifies that the company is obtaining desired amount of profit. However, the financial year of 2017 again marks a drop in the net profit margin (Chandra 2014).
|
Financial Year |
Net Profit/Loss ($M) |
|
2012 |
-244 |
|
2013 |
6 |
|
2014 |
-2922 |
|
2015 |
558 |
|
2016 |
1029 |
|
2017 |
853 |
Conclusion
The Qantas Airways Limited is in the revival phase. The company is turning around from the disaster that it has recently been through. Moreover, the financial ratios reflect that the company has been reviving since the financial year of 2015, but the year of 2017 mark an unusual drop that should be further investigated.
Thus, the particular recommendation in regards to the shareholder investment is that investment consideration in Qantas Airways Limited should be postponed. The profit trend of the company should be further monitored and analyzed for a few more financial years and then the investment decision should be taken.
Reference
Chandra, S., Chitgopeker, C. K., Crawford, B., Dwyer, J., & Gao, Y. (2014). Establishing a benchmark of fuel efficiency for commercial airline operations. Journal of Aviation Technology and Engineering, 4(1), 6.
Cumming, W. (2016). Resource Capacity Estimation Using Lognormal Power Density from Producing Fields and Area from Resource Conceptual Models; Advantages, Pitfalls and Remedies. In 41st Workshop on Geothermal Reservoir Engineering, Stanford University, Stanford, CA, Feb (pp. 22-24).
Davari, A., Iyer, P., & Rokonuzzaman, M. (2016). Identifying the determinants of online retail patronage: A perceived-risk perspective. Journal of Retailing and Consumer Services, 33, 186-193.
Patil, R., & Singh, G. (2016, December). Inventory management and analysis in an orthodontic practice. In Seminars in Orthodontics
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