Comments on: AMCOR Assignment Questions: Post here

By: scholsbiz

scholsbiz — Sun, 25 May 2008 22:31:18 +0000

“Ok, for question 3 when it says “identify what changes Amcor has made to Liquidity, solve… etc” does that mean that we give the ratios (liquidity, solvency, profitability and efficiency) and write a comment? OR does it also mean that we have to write WHY there’s a change in the ratios? how do we find out what changes have been made at Amcor in relation to liquidity, sol etc. ? Most changes dont apply to Liquidity or solvency, just profitability and some on efficiency.
HELP, i’m working up a sweat trying to do this!!!”

Helga … stop sweating …

You have to make a comment and write about why you think those changes might have occurred. You may be able to get some help by reading through Amcor’s Annual Report to assist you. In addition using your existing knowledge might help identify in which areas of the financial statements changes have occurred.

For eg. an increase in Net Profitability could be due to increased sales or decreased cogs or decreased expenses or, even a combination of these.

By: scholsbiz

scholsbiz — Sun, 25 May 2008 22:26:55 +0000

“Hey, how come on the hand-out u gave us (the 1999 balance sheet etc) why did u lable ‘Total assets’ ? Do we need to use it for something?… a ratio?”

You only need to use it if you have a ratio that requires Total Assets.

By: scholsbiz

scholsbiz — Sun, 25 May 2008 22:25:40 +0000

“this expense ratio thing doesnt make any sense! i got 93% using the 1999 report, using the formula suggested by you
so do we need to write a comment on it? how about just writing a sentence on what it means… is that enough? because the gross profit i used is the same as the sales… its sooo weird”

The figure seems to be consistent with what others are getting … remembering that in the real world we would be looking at detailed revenue statements with multiple areas of expense and working out a particular expense ratio (eg. Wages Expense Ratio). In any case you do need to write a comment about what such an expense ratio might mean … you also need to state how such expenses might have changed when you do the 2006 comparison. Note you might find more information if you read through the rest of the financial report that could assist with your answer.

Gross profit and sales figures being the same is indeed a bit weird but Amcor have chosen in their 1999 consolidate reports to combine those. In their detailed reports those figures will not be combined.

By: Helga

Helga — Sun, 25 May 2008 11:17:14 +0000

Ok, for question 3 when it says “identify what changes Amcor has made to Liquidity, solve… etc” does that mean that we give the ratios (liquidity, solvency, profitability and efficiency) and write a comment? OR does it also mean that we have to write WHY there’s a change in the ratios? how do we find out what changes have been made at Amcor in relation to liquidity, sol etc. ? Most changes dont apply to Liquidity or solvency, just profitability and some on efficiency.
HELP, i’m working up a sweat trying to do this!!!

By: Beatrice

Beatrice — Sun, 25 May 2008 10:58:05 +0000

Hey, how come on the hand-out u gave us (the 1999 balance sheet etc) why did u lable ‘Total assets’ ? Do we need to use it for something?… a ratio?

By: Helga

Helga — Sun, 25 May 2008 09:03:58 +0000

By: what the?!

what the?! — Sun, 25 May 2008 07:42:48 +0000

this expense ratio thing doesnt make any sense! i got 93% using the 1999 report, using the formula suggested by you
so do we need to write a comment on it? how about just writing a sentence on what it means… is that enough? because the gross profit i used is the same as the sales… its sooo weird

By: scholsbiz

scholsbiz — Tue, 20 May 2008 21:16:03 +0000

?? there is no recommendation for how long each answer should be aside from those that have been given in the assignment.
As a rough idea you can assume a decent sized paragraph or two for each ratio that you calculate. Obvioulsy more information is required in the $10,000 question and in the questions that require you to make suggestions for improvement.

By: ??

?? — Tue, 20 May 2008 10:45:18 +0000

Hey, how long do you recommend the answer be for each question?
Thanks!