Apply relevant accounting concepts to simple business scenarios. c) Interpret and analyse the information contained in general purpose financial statements, to evaluate the overall financial position and performance of a business1. Vertical analysis of financial statements: a. Conduct Vertical Analysis of the Crystal Hotel Balance Sheet using the Case Study Excel Workbook. The workbook is attached under Assessment Information section (AU - Crystal Hotel Case Study Workbook Part A student.xlsx). Open the Vertical Analysis Balance Sheet worksheet. b. Conduct Vertical Analysis of the Crystal Hotel Income Statement for the year ending 30 June 2015 using – Vertical Analysis Income Statement worksheet of the same workbook (AU - Crystal Hotel Case Study Workbook Part A student.xlsx). 2. Conduct Ratio Analysis using Ratio Analysis worksheet of the same workbook (AU - Crystal Hotel Case Study Workbook Part A student.xlsx). PART 2 – to be included in the Business report 3. Using the Income Statement Vertical Analysis prepared in Excel, 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. Based on the results of your comparative analysis make recommendations on areas needing an improvement or further investigation. 4. Using the results of the Ratio Analysis in Excel, comment on Profitability, Efficiency, Liquidity and Solvency of the business. With reference to the industry data provided, make recommendations when 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 brief explanation of each benchmark you are recommending including formulas when appropriate.
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