Page 1 of 3 FIT5159 IT for Financial Decisions Assignment 1 Financial Analysis Due Date: 4 p.m. Friday 18th September 2020 Value: 15% of the marks available for FIT5159 Type of Assignment: Individual...

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Page 1 of 3 FIT5159 IT for Financial Decisions Assignment 1 Financial Analysis Due Date: 4 p.m. Friday 18th September 2020 Value: 15% of the marks available for FIT5159 Type of Assignment: Individual Assignment Overview: You have recently joined a consulting firm and as part of your initial assignment, you are given 3 mini cases to work on. Case 1: Tele KS Solutions – An analysis of their financial statement, cash flow and taxes; Case 2: H. E. Service Group – Ratio Analysis; Case 3: Inv. Property – Capital Budgeting. Data and requirements for the three cases are provided in the accompanying spreadsheet, FIT5159 Assignment 1.xlsx. Your first step is to examine the three cases and develop a spreadsheet model that will facilitate the analysis required for each of these companies. Your boss has indicated that although this may be the initial list of companies, your spreadsheet model should be developed in such a way that it can easily be utilised for other companies should the need arise. As your boss has had nasty experiences when making decisions using spreadsheet models, she would also like to be able to understand the assumptions built into the model. The Deliverables, Assessment Weight and Criteria:  A spreadsheet model for each of the cases that satisfies the above requirements. (30%)  Flexibility and ease of use of spreadsheet model for decision making. (20%)  A short report addressing all the questions posed in each of the case and your recommendation where necessary. (50%) Required: o A short memorandum or cover letter to your boss briefly stating the 3 cases you are addressing in your report. You should also state any assumptions you made in the financial model. (NO executive summary is required.) o The report should be in 3 sections corresponding to the 3 cases. o The report should be in essay format and not a ‘Q&A’ write-up. o Your report should be a maximum of up to 8 A4 pages (Including the memorandum) with 1.5 spacing of 12 point Arial or Time New Roman font size. Submission Instructions: FIT5159 Assignment One – Financial Analysis Page 2 of 3 The assignment must be submitted electronically. The report and spreadsheet model are to be submitted for assessment via the assignment submission tool1 on Moodle. Your report file should be in Word document format, your spreadsheet models in the form of Excel file, and named without spaces, brackets etc. The filename should contain the unit code, assignment number, your tutorial activity code [02 / 03/ 04 / 05 / 06 / Online01 / Online02], and your student ID number, similar to the following example: FIT5159_Assignment1_Activity code_12345678.doc(x) AND FIT5159_Assignment1_Activity code_12345678.xlsx Your submission is considered complete after accepting the submission statements for both the Excel file and Word document. Late submission (of either the report, or the spreadsheet, or both) will result in the reduction of marks according to the section “Extensions / Special Considerations” below. Extensions /Special Considerations: If you believe that your assignment will be delayed because of circumstances beyond your control such as illness, you should apply for an extension no later than two University working days after the due date. All applications for special consideration must be made using the Special Consideration Application form available via the Monash Special Consideration website (https://www.monash.edu/exams/changes/special-consideration). You must read the associated Special Consideration policy outlining the grounds for granting special consideration, and attach the appropriate documentation to your form. Submit your form online. More information about the Faculty of Information Technology’s special consideration policy and procedures is available here: https://www.monash.edu/exams/changes/special-consideration Do not assume that submission of a Special Consideration application guarantees that it will be granted – you must receive confirmation that it has been granted from your lecturer. Late assignments submitted without an approved extension may be accepted (up to two weeks late) at the discretion of the lecturer but will be penalised at the rate of 5% of total assignment marks per day (including weekends)2. Assignments received later than two weeks after the due date will not normally be accepted. Please Note: 1. Your inability to manage your time or computing resources will not be accepted as a valid excuse. (Several assignments falling due at the same time are a fact of university life.) 2. Hardware failures, whether of personal or University equipment, are not normally recognised as valid excuses. Failure to back-up assignment files is also not recognised as a valid excuse. 1 Please note, Turnitin, a text-matching software, has been integrated with the Moodle assignment submission tool. Submitting an assignment to Turnitin happens automatically once the assignment is uploaded/submitted to Moodle. For more information, please refer to the following webpages:  https://guides.lib.monash.edu/turnitin  https://www.intranet.monash/vle/educational-technologies/turnitin 2 For example, this assignment will be marked out of 100 marks and due by 4:00 p.m. Friday the 18th of September, 2020; if the student submits the assignment by 4:00 p.m. Monday the 21st of September, 2020, a 15% (3 days late) penalty of 100 marks will be applied (that is, 15 marks will be deducted from the marks that the student deserves). https://www.intranet.monash/vle/educational-technologies/turnitin FIT5159 Assignment One – Financial Analysis Page 3 of 3 Monash University has a range of support services for students including Counselling and Language & Learning. If you are experiencing difficulties in your studies these services may be of great assistance. Plagiarism and Collusion: Note that this is an individual assignment. While general collaboration between students in terms of understanding of concepts is acceptable, the assignment and the solution contained in it must be entirely your own work. There are no specific requirements for referencing. However, if any references are used, proper citation and paraphrasing is required. You must NOT: • Use another student’s work as the basis for your own. • Use another student’s work to help ‘give you ideas’. • Steal, appropriate or make use of the work of another student without their knowledge. • Lend your work to another student for any reason. • Use the ideas, words or other intellectual property of anyone without proper attribution. • Leave your work unattended on the student laboratory computers or give your authCate details to anyone. Penalties for plagiarism and/or collusion can include formal reprimands, notes being attached to your student file, failure in the assignment, failure in the unit or even suspension or exclusion from the university. See the Unit Moodle (under “Assessment” tab) for more information on plagiarism and cheating, and for links to Faculty and University policies on this topic. Good Luck! Dr Abdullah Alghamdi 24 August 2020
Answered Same DaySep 13, 2021FIT5159Monash University

Answer To: Page 1 of 3 FIT5159 IT for Financial Decisions Assignment 1 Financial Analysis Due Date: 4 p.m....

Sweety answered on Sep 16 2021
133 Votes
CASE 1 Tele KS Solutions
    CASE 1
        Tele KS Solutions's 2018 and 2019 December 31 Balance Sheets
        PARTICULARS    2019    2018
        Assets
        Cash    $ 2,567,044    $ 3,613,202
        Accounts receivable    $ 25,549,424    $ 19,768,149
        Inventories    $ 614,402    $ 466,766
    
     Total current assets    $ 28,730,870    $ 23,848,117
        Net fixed assets    $ 48,940,616    $ 39,418,554
        Total assets    $ 77,671,486    $ 63,266,671
        Liabilities and equity
        Accounts payable    $ 13,827,806    $ 13,885,561
        Accruals    $ 7,633,984    $ 5,682,808
        Notes payable    $ 647,763    $ 1,867,220
         Total current liabilities    $ 22,109,553    $ 21,435,589
        Long-term debt    $ 17,781,696    $ 10,689,860
         Total liabilities    $ 39,891,249    $ 32,125,449
        Common stock    $ 10,965,000    $ 10,000,000
        Retained earnings    $ 26,815,237    $ 21,141,222
         Total common equity    $ 37,780,237    $ 31,141,222
        Total liabilities and equity    $ 77,671,486    $ 63,266,671
         The Requirements as specified in the question is solved as under;
    a)    Tele KS Solutions
        INCOME STATEMENT
        PARTICULARS    2019
        Sales    $ 150,764,675.00
        EBITDA    $ 24,122,348.00
        Depreciation    $ 5,383,467.76
        Interest    $ 952,000.00
        Profit Before tax (PBT)    $ 17,786,880.24
        Tax    $ 7,470,489.70
        Profit After Tax (PAT)/ Net Income    $ 10,316,390.54
        Dividend    $ 4,642,375.74
    b)    Tele KS Solutions
        Statement Of Stakeholders' Equity for the year ending 31st December 2019
        Particulars    Common Stock    Retained Earning    Total Stockholder Equity
        Balance on January 1 2018    $ 1,000,000.00    $ 21,141,222    $ 22,141,222.00
        Issue of share    $ 9,965,000.00        $ 9,965,000.00
        Net Income        $ 10,316,390.54    $ 10,316,390.54
        Dividend paid        $ 4,642,375.74    $ 4,642,375.74
        Balance on December 31    $ 10,965,000.00    $ 26,815,236.80    $ 37,780,236.80
        Tele KS Solutions
        Statement Of Cash Flows for the year ending 31st December 2019
        PARTICULARS    AMOUNT    AMOUNT
        CAH FLOW FROM OPERATION
        Tax paid    $ (7,470,489.70)
        Net Increase/ decrease from current Asset    2053707.44344
        CAH FLOW FROM OPERATION        $ (5,416,782.26)
        CAH FLOW FROM INVESTING ACTIVITIES        0
        Interest paid        $ (952,000.00)
        CAH FLOW FROM FINANCING ACTIVITIES
        Dividend paid    $ (4,642,375.74)
        Issue of shares    $ 9,965,000.00
        CAH FLOW FROM FINANCING ACTIVITIES        $ 5,322,624.26
        Total Cash flow        $ (1,046,158.00)
        Opening cash & cash equivalent         $ 3,613,202.00
        Closing cash & cash equivalent        $ 2,567,044.00
    c)    Tele KS Solutions
        Statement showing Net Operating Working Capital
        Particulars    2019    2018
        Cash    $ 2,567,044    $ ...
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