BSD110: ACCOUNTING TP2, 2020 ASSESSMENT ITEM NUMBER 1: DECISION MAKING IN ACCOUNTING Weighting total: 25% Due date and time: 11.59pm - Thursday 23 July, 2020 Assessment submitted after the due date without an approved extension will not be marked and will receive 0. If special circumstances prevent you from meeting the assessment due date, you can apply for an extension by the due date. If you don’t have an approved extension you should submit the work you have completed by the due date and it will be marked against the assessment criteria. Submission requirements: Submit your assignment via Turnitin through the BSD110 Blackboard site. You will need to submit each of the following items at two separate Turnitin submission points under Assessment 1. Excel workbook (with two worksheets - must be the .xls or .xlsx file not pdf format) Please note that we download your entire Excel file from Turnitin so it doesn’t matter if you can’t see the last few ratios on your screen view in Turnitin as long as they are in your file. 2. Your report (700 words +/-10%. Words exceeding +10% will not be marked) It is each student’s responsibility to check online submissions have been uploaded correctly (i.e. you should open the file from Turnitin to check this, once your files have been uploaded).
Check that you have submitted Excel into the Excel submission point AND your report into the report submission point as several students in past semesters submitted only one file. (As an example, students submitted a report into the Report submission point and then submitted their Excel also into the Report submission point which overwrites the original Excel file). We can only mark what you provide so it is vital to check that you have definitely submitted 2 files (Excel and report) into the 2 different submission points. Group or Individual: Individual This assessment item assesses the following learning outcomes: Knowledge and Technological Skills (KS) 1.1 Demonstrate and apply theoretical and technical knowledge across the broad field of business. Social, Ethical and Global Understanding (SE) 5.1 Apply knowledge of ethical and social responsibility perspectives in analysing and addressing business issues.
Background and information for Coca-Cola Amatil and Pepsico Inc. PepsiCo is a leading global food and beverage company who make, market and distribute a wide range of products in more than 200 countries and territories. Coca-Cola Amatil is one of the largest bottlers and distributors of non-alcoholic beverages in the Asia-Pacific region. Information provided: 1. An Excel file with both Coca-Cola Amatil and PepsiCo’s financial information for the year ended 2019. Use only the financial information provided and DO NOT refer to other information in the financial statements. The currency used in the financial statements is the Australian dollar (AUD $) for Coca-Cola Amatil and US dollars for PepsiCo (US $). 2. Coca-Cola’s 2019 Annual report and Sustainable Development information. (You can use the Ctrl and F buttons together on your keyboard to help you search for the Corporate Social Responsibility information). Selected Financial Information for PepsiCo
Note there are no preference dividends, short term investments or any other information which is not listed. You do not need any financial information other than what is provided above.
Required: 1. Excel worksheet (20 marks - 10%): You need to use the Excel file provided and calculate the following ratios for both companies (PepsiCo and Coca-Cola Amatil making sure you use Excel formulas: a. 2 ratios in relation to the liquidity of the company for the year ended 2019 b. 2 ratios in relation to the solvency of the company for the year ended 2019 c. 2 ratios in relation to the profitability of the company for the year ended 2019 d. 2 ratios in relation to the evaluation of share investments for the year ended 2019 In selecting your ratios, only use ratios from the current set textbook. Calculate each ratio to 2 decimal places. No ratios discussion is required in Excel but is in the report. HINT: Refer to Week 3 – Financial ratios. Note: marks are allocated for the correct use of Excel formulas. You cannot simply type in your answers – you must use an Excel formula (eg B18/B9). • Calculate the ratios first with a calculator and then check the answers against Excel to ensure correct use of brackets in your Excel formulas. If you are calculating averages, you may prefer to use the Average function in Excel for example = AVERAGE(B8:C8) • Format the worksheet appropriately – for percentages and currency. Round all figures to 2 decimal places (see instructions and lecture recordings in Blackboard). Save your Excel file – you will need to upload this later into Turnitin. 2. Your report (30 marks - 15%): PepsiCo and Coca-Cola’s Annual Reports contain extra disclosure
2. Your report (30 marks - 15%): PepsiCo and Coca-Cola’s Annual Reports contain extra disclosures in relation to voluntary social and environmental information. Prepare a report (maximum of 700 words) to address the following points. It is recommended that your report is structured with the headings (a) (b) (c) (d). a. If you were intending to buy shares to provide you with an extra income from the dividends, would you buy shares in PepsiCo or Coca-Cola Amatil? Explain your reason why and include figures where necessary. Which two ratios would be useful in making this decision? Explain what each ratio measures and how that is relevant to providing extra income. (10 marks) b. If you were intending to buy shares in a company that was profitable and had long-term stability, would you buy shares in PepsiCo or Coca-Cola Amatil? Explain your reason why and include figures where necessary. Which two ratios would be useful in making this decision? Explain what each ratio measures and how that is relevant to providing long term stability. (10 marks) c. From the Annual Reports provided, identify three (3) specific sustainability areas that PepsiCo and CocaCola focus on to run a safe, responsible, and profitable business. Explain each item briefly in your own words and indicate the page numbers in the annual report where the disclosures were made. (An example of a specific sustainability development area could be banning product testing on animals but this is not relevant in this assignment). For more information on Pepsico visit pepsico.com/sustainability. (6 marks) d. What would be one recommendation that you would provide to both Coca-Cola Amatil and PepsiCo in relation to Corporate Social Responsibility (CSR). What would be one thing that you would recommend they implement or concentrate on. You might recommend different things to each company. Justify your decision. Hint: you might need to do some online research about current issues in the media and identify if these companies are already doing this. (4 marks) Save your Report file – you will need to upload this later into Turnitin. Total 50 marks (25% weighting)’
Answers to common questions: 1. What format is required for the report? No Executive Summary, introduction or conclusion are required. Simple headings (a), (b), (c), (d) followed by the discussion are all that is needed - see example headings below but please create your own. You do not need to restate the questions. a. Buying shares providing extra income from dividends b. Buying shares in a profitable company and long-term stability c. 4 priorities regarding Sustainable Development d. Decision 2. How strict is the report word count? 700 words +/-10% to word limit. Words exceeding +10% will not be marked. The References list and headings do not form part of the word count for this assignment. 3. Is it necessary to reference? What referencing style can be used? It is not necessary to reference the textbook, the Annual Reports, allocated QUT Readings or the online materials however if you use any other sources they should be appropriately referenced. You may use any referencing style that you prefer and any in-text references will form part of the word count. 4. How to search CSR for specific activities in the Annual report PDF provided? Use Ctrl key on the keyboard and letter f together and type in key words that you are looking for. 5. I do not know how to use Excel formulas, what do I do? If you do not know how to use Excel formulas, use Google to assist you and there are videos on Blackboard showing you some examples.
Tips on addressing the Marking Criteria Knowledge and Technological Skills – Excel component (20 marks) Marks will be allocated for: • Providing evidence that you have correctly used the formula function in Excel to calculate the ratios (must be .xls or .xlsx format – not a pdf, jpg or Mac numbers format) • Identifying 2 appropriate ratios for each of the 4 categories – liquidity, solvency, profitability, evaluation as an investment • Correctly calculating the ratios and correctly formatting the results (e.g. as a %) Your report - Social and Global Understanding – Report (30 marks) Marks will be allocated for: • Identifying whether you would buy shares and in which company for the stated reason. • A discussion on why you came to the decision and identify which ratios were useful from your calculations to make that decision (demonstrating understanding of what the ratios measure). • In order to decide which shares you would purchase you need to identify the reason that you are purchasing the shares – is it for extra income (dividends), profitability or long term survival (stability). Your report must include the reason that you are purchasing the shares, clearly identify the decision and provide the relevant information to support that decision. Please note that you may not need to use all the ratios that you have calculated. • Identifying 3 sustainability areas both PepsiCo and Coca-Cola Amatil focus on to run a safe, responsible and profitable business • Outline and justify your recommendations to both companies.