Ashok
Ashok
Ashok
SCOOTAROUND
Income Statement
for the year ended 30th June 2023
ACCOUNTS AMOUNT
REVENUE
Sales Revenue 2,680,000.00
Hiring Fees 192,000.00
Award Revenue 3,000.00
2,875,000.00
Less: Cost of Goods Sold 1,430,000.00
GROSS PROFIT 1,445,000.00
It is assumed that ScootAround is liable to pay 30% corporate tax and such tax will be
paid in the next financial year.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
SCOOTAROUND
Balance Sheet
As at 30th June 2023
Non-Current Assets
Vehicle 30,000.00
Hire Equipment 20,000.00
Computing Equipment 4,500.00
Furniture and Fittings 6,400.00
Total Non-Current Assets 60,900.00 60,900.00
TOTAL ASSETS 1,484,389.00
LIABILITIES
Current Liabilities
Accounts Payable 35,472.00
Expenses Payable 1,727.00
GST Collected 216,000.00
PAYG Payable e 5,020.00
Income Tax Payable 109,539.00
Total Current Liabilities 367,758.00
Non-Current Liabilities
Loan Payable 45,500.00 45,500.00
TOTAL LIABILITIES 413,258.00
NET ASSETS 1,071,131.00
EQUITY
Share Capital 105,000.00
Less: Drawings 4,200.00
Net Share Capital 100,800.00
Retained Earnings
970,331.00
(Net Profit Transfer)
NET EQUITY 1,071,131.00
It is assumed that the provided values of non-current assets are the book value of
assets after adjusting Depreciation for the year.
It is assumed that income tax expense will be paid in the next financial year, and this
is recorded as a current liability.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
SCOOTAROUND
Statement of Owners' Equity
As at 30th June 2023
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
PART B
In Part B, as a team, you will use information from the annual reports of both ScootAround
and the company you have chosen your Business Academy organisation to answer the
questions below for both organisations.
a.What is the main source of revenue for the business and what was the $ value?
The main source of revenue for the business is revenue from its core business activities which
is the sale of a scooter called ZipZap2. In addition, it also generates revenue from hiring
activities that hire scooters to the public.
The value of revenue from the sale of the scooter was $ 2,680,000.00.
b.Calculate the gross profit margin for 2023. What is this calculation telling you?
The Gross Profit Margin has been defined as a financial metric that indicates the percentage
of revenue that the company retains after meeting all the direct expenses such as labour,
materials, etc. (Bloomenthal, 2022). It can be calculated by the following formula:
Gross Profit
Gross Profit Margin= ∗100
Revenue
1,445,000
Gross Profit Margin= ∗100
2,875,000
The Gross Profit Margin of ScootAround is 50.26% and it indicates that the company is
operating efficiently by effectively managing the direct expenses. In addition, it also indicates
that the company is in a stable position to cover all the operating expenses.
c. Did the company make a net profit or a loss in 2023 and what was the $ value?
The company made a net profit of $ 970,331.00 in 2023. It has been assumed that the
company will be paying a corporate tax of 30% on taxable income.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
d.Calculate the net profit margin for 2023.
The net profit margin can be calculated by the following formula:
Net Profit
Net Profit Margin= ∗100
Revenue
970,331
Net Profit Margin= ∗100
2,875,000
Net Profit Margin=33.75 %
e. What one (1) factor might impact demand for business and drive change in
revenue?
The most important factor that will impact the demand for ZipZap2 scooters and drive a
change in revenue is an increase in the price. The manufacturers have indicated that there will
be an increase in the price of the scooters in 2024 and it is expected to be increased by a
minimum of 7%. Such an increase would affect the affordability of the customers thereby
declining the demand which ultimately would affect the revenue of the company.
f. What % of sales revenue is the Cost of Goods Sold/Cost of Sales? What steps
might be taken to manage this expense?
The percentage of sales revenue to the Cost of Goods Sold/Cost of Sales can be calculated by
following formula:
Cost of Goods Sold
¿ ∗100
Sales Revenue
1,430,000
¿ ∗100
2,680,000
¿ 53.36 %
Negotiation with suppliers for competitive pricing, effective inventory management, and
economies of scale are some of the significant measures that can be taken by the company to
manage this expense. The company can negotiate or explore other suppliers that offer better
pricing which enables the company to manage the cost of goods sold. In addition, the
company can also ensure effective inventory management and strive for economies of scale
that will ensure effective management of this expense.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
g.Calculate the Current Ratio for the company. Is it satisfactory?
The current Ratio is one of the liquidity ratios that assess the liquidity and short-term
solvency of the company, and it measures the ability of the company to cover or pay its short-
term liabilities using short-term assets (Hasanuddin et al., 2021). It can be calculated as
follows:
Current Assets
Current Ratio=
Current Liabilities
1,423,489
Current Ratio=
367,758
Current Ratio=3.87 :1
According to Li (2023), the current ratio (< 1) indicates that the company has a high
probability of failing while the high current ratio (>1) indicates that the company can meet its
short-term obligations. However, Hasanuddin et al. (2021) asserted that the ideal current ratio
should be within 1:1 or 2:1, and anything higher than this would indicate the inability of the
company to use its short-term assets efficiently.
As such, the current ratio of ScootAround is 3.87:1 and it is satisfactory as it indicates that
the company can easily meet its short-term debt obligations. On the other hand, it also
indicates that the company was not able to use its short-term assets more efficiently and this
can be attributed to the company’s status as a newly established venture.
Long−term Liabilities
¿ ∗100
Total Liabilities
45,500
¿
413,258
¿ 11.01 %
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
i. In terms of the triple bottom line list one item of information that requires
disclosure to the public about environmental matters?
The triple bottom line has been defined as the framework that assesses the performance of the
company based on three dimensions such as economic, social, and environmental aspects
(Hammer and Pivo, 2016). Likewise, one of the items that ScootAround must disclose to the
public about environmental matters is battery recycling and disposal policies. Since the
company has received multiple complaints relating to batteries, the company must disclose
how such batteries are recycled and disposed of to minimize the impact on the environment.
k. List two (2) opportunities for growth and sustainability of the business going
forward?
Currently, ScootAround engages in the sale and hiring of ZipZap2 scooters which may
impede its growth and sustainability in the long run with the entrance of new companies. For
this, the company can expand the brand and diversify its product line beyond scooters which
can generate additional revenues. In addition, the company can also expand its markets
towards other locations and customer segmentations such as tourist destinations, universities,
etc. through partnerships with ride-sharing platforms that can not only increase the revenue
streams but also foster long-term relationships. Thus, diversification of product lines and
expansion of the market are two significant opportunities that the company can delve into to
ensure the growth and sustainability of the business.
l. In terms of corporate social responsibility list two (2) points that each company
should be undertaking to indicate that this is valued.
Corporate Social Responsibility (CSR) is a framework that integrates the social and
environmental aspects into business activities and indicates how the businesses contribute to
the development of the community in which they operate (Newman et al., 2020). As a part of
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
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corporate social responsibility, both the companies (ScootAround and The Dragon Coffee)
must minimize waste generation and promote community engagement. The companies can
minimize the waste by recycling and decomposing the wastes properly and this will not only
reduce the adverse impact on the environment but also promote a green community. In
addition, the companies can also promote community engagement by offering discounts on
products and sponsoring activities that will enhance community engagement.
a.What two (2) factors would you as a prospective investor consider about each
organisation? Would you invest in either ScootAround or your business academy
organisation? Why (give two (2) reasons for each)?
Based on the business analysis, I would prefer to invest in The Dragon Coffee Business
because of the following reasons.
Like ScootAround, the projected income statement of The Dragon Coffee indicates
that the business will generate profit in its 1 st year of operation. Though the profit
generated by ScootAround is too high compared to The Dragon Coffee, the later
seems promising returns over the years.
The Dragon Coffee has huge potential growth as compared to ScootAround. It has a
plan to expand to other universities in Brisbane by 5th year and other Universities in
Australia by the 10th year. Such a growth potential would ensure maximum and
sustainable returns to the investors.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
PART C
a) Your team has been asked to assist with embedding at least two (2) of the United
Nations Sustainable Development goals in the strategic plan for each
organisation. Besides goal 13 which is covered in the next question, what two (2)
goals do you think would be chosen by (a) ScootAround and (b) your business
academy organisation and why? Describe how you would suggest these goals be
operationalised.
According to UNDP (2024), the Sustainable Development Goals (SDGs) are those goals that
aim to address social, economic, and environmental challenges faced by people and countries
across the world. This SDG strives to balance social, economic, and environmental
sustainability. Currently, there are 17 SDGs and two SDG goals that each company must
adopt and integrate SDG goals besides SDG 13 are discussed below.
ScootAround
For ScootAround, the adoption and integration of SDG 7 and 11 would positively impact the
organization as well as the community. The SDG 7 7 aims to ensure Affordable and Clean
Energy. As a company that deals with transportation activities, this goal is significant for
ScootAround as the emission of greenhouse gas emission adversely impacts the environment.
For this goal, ScootAround must move to do business with electric scooters, and this will
help the business in promoting clean and renewable energy. In addition, the business must
also adopt SDG 11 which focuses on ensuring Sustainable Cities and Communities. The
business modality of ScootAround direlcy impacts urban mobility and integration of SDF 11
aligns with the strategic plan of the business to create sustainable cities. This SDG can be
operationalized by expanding the business and its hiring services to other areas in the
community and enhancing accessibility to all the users by closely working with the local
government authorities and other important stakeholders.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
adopt SDG 12 as the coffee industry has a significant impact on the consumer, society, and
the environment. The adoption and integration of SGD 12 strengthens the company’s
commitment to ensuring Responsible Consumption and Production practices. This goal can
be achieved by sourcing quality coffee beans from farmers, reducing waste by recycling the
cups, carefully disposing of unrecyclable materials, educating the customers, and use of eco-
friendly packaging solutions.
b) The reality of Climate Change brings with it positives and negatives in relation
to emissions, energy, risk, regulation, consumer attitude. As managers of an
organisation do you feel that climate change is an issue for ScootAround and
your business academy organisation and why? What are the main challenges (list
two (2)) that dealing with climate change may present for your company? If
these are ignored, what might the consequences be (list two (2))?
Climate change is a global issue that would adversely affect the globe directly or indirectly
and such issues must be addressed (Tosun, 2022). Likewise, climate change is an issue for
both the ScootAround and The Dragon Coffee. Firstly, ScootAround deals with the supply of
scooters, and these scooters are exclusively used as one form of transportation. The use of
scooters significantly contributes to carbon gas emissions which ultimately contributes to
climate change. Similarly, the production of coffee products requires significant energy
primarily from fossil fuels and energy-intensive processes such as roasting, drying, grinding,
etc. significantly contribute to carbon emissions thereby affecting climate change. In addition,
these businesses would generate a substantial amount of waste which would affect the
pristine environment which in turn would affect climate change. Thus, climate change is an
issue for both the business.
The main challenges that dealing with climate change may present The Dragon Coffee are
adapting to changing environmental conditions and reducing carbon footprint. It would be
extremely difficult for the coffee business to adapt to the changing business conditions such
as different weather patterns, different seasons, etc. brought by climate change. Such
conditions would adversely affect the supply of coffee beans which would affect the revenue
and profitability of the business. In addition, reducing carbon emissions from operations
would be a challenge for the coffee business as most of the production processes are
dependent on energy consumption.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
However, the business can address these challenges through the adoption of new and
advanced technologies, redesigning and adjusting operational practices, use of green energy,
etc. If such issues are ignored and not addressed, it may lead to supply chain disruptions and
reduced profitability. If challenges imposed by climate change are not addressed, it may lead
to disruptions in the supply chain thereby affecting the productivity of the business. In
addition, it will affect the profitability of the business thereby affecting the returns to the
investors.
c) What is the Modern Slavery Act (2018) and how is it relevant to business
organisations? Going forward, could it impact the way ScootAround and your
business academy company do business and how?
Modern Slavery Act (2018) is an Act that aims to address and reduce modern slavery and
human trafficking. It also aims to address issues relating to labour exploitation, human rights
abuses, etc. in business operations and supply chains (Australian Government, 2018).
ScootAround and The Dragon Coffee deal in the supply of scooters and the sale of coffee
products where the supply chain plays a crucial role in meeting the goals and targets of the
business. In such business settings, the Modern Slavery Act (2018) places legal responsibility
and obligations on the companies to ensure that slavery, human trafficking, labour
exploitation, human rights abuses, etc. are not taking place in their business operations and
supply chain settings.
The Modern Slavery Act (2018) would have several impacts on the ways ScootAround and
The Dragon Coffee operate their businesses. The two most important impacts are the supply
chain due diligence, and transparency and reporting. Going forward, the companies must
enhance the due diligence process in their business settings, and this will enable the
organizations to identify any potential modern slavery risks and accordingly implement the
measures to mitigate the associated risks. This would require the companies to conduct a risk
assessment, engage with suppliers and other relevant stakeholders, and institute dynamic
internal control and monitoring mechanisms to combat any risks that are associated with
modern slavery.
Moreover, the companies must enhance transparency and reporting on modern slavery and
associated risks in the organization. It can also report on any actions taken by the company to
address such risks. Thus, the companies must hire additional employees to handle any issues
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
relating to the Modern Slavery Act (2018) and this would have a direct impact on the
financial performance of the companies.
PART D
QUESTION ONE
Details of Minutes of first team meeting, including company allocation to individuals
and work schedule.
4. The first meeting was held on 5th April 2024 at house, 14 Cavill Place, Runcorn 4113.
The members present were Mr. Ashok Guring, Sagar Kunwar, Sangam Ranabhat and
Ayush Ghale. Following agenda were discussed in the meeting.;
The meeting started at 10:00 AM and all the members were present. Firstly, the team leader
introduced himself and comprehensively informed the members about the objectives of the
meeting. The team leader also solicited unconditional support from each member for
completing this assignment on time. Following his introduction, each member briefly
introduced themselves and all the members agreed to render full support to the leader in
completing the assignment on time.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
decided to name the business as “The Dragon Coffee” which was generated based on the
name of the country (Bhutan-Druk- Dragon) where most of the members are from.
3. Allocation of company
The group must have detailed knowledge of the companies (Scoot Around and The Dragon
Coffee) to complete this assignment. For this, the team after discussion decided to allocate
the companies as follows:
However, the team leader informed the team members that each member must have a
thorough understanding of both companies to complete the assignment more productively.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
The team discussed this specific agenda and all the members agreed to work as per the given
deadline. The meeting adjourned at 1:00 PM.
QUESTION TWO
The team met 6 times and discussed extensively various aspects that are necessary to
complete the assignment. The notes from the minutes of the meeting are:
Company Analysis
The team members presented the analysis of the company they were allocated and shared
their findings with the group. The members also presented the formula used to calculate
certain financial metrics given in the question. Besides this, the team also presented other
analyses that are required to answer in the assignment.
Report Structuring
The team decided to answer the questions as per the given format. All the team members also
presented individual work and answers to all the questions of Part A, B, and C to ensure that
all the members were on the same page and had a thorough understanding of the companies.
Report Compilation
After a thorough discussion, the team leader started compiling the answers to the questions.
All the members were given the opportunity to present their findings and finally decided to
take the best answers. However, it has been observed that all the answers are similar and
common which made it easier for the team leader to compile.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
QUESTION THREE
Personal reflection on the process of collaboration to complete this assignment.
Through this teamwork, I have realized that working in teams entails effective
communication, teamwork, shared roles and responsibilities, patience, and understanding of
diverse cultures.
Effective communication plays a vital role in passing true and intended messages or
information to the members. This will enhance effective collaboration among the team
members. Though English is not my first language, most of the subjects back in my country
are taught in English and this has made it much easier for me to communicate to my team
members. However, the different accents posed some challenges in transmitting the required
information. As the meeting continued, I learned a lot and I realized that communicating
calmly will enable me to pass the intended message which I will be doing in the next group
assignments.
One of the critical elements is teamwork. By working as a team, I realized that every member
must share equal roles and responsibilities. Despite agreeing to terms and conditions, some of
the members turned late for meetings. However, as we progressed, all the members worked a
lot, and just needed to explain to them the clear expectations from them. Such a strategy not
only ensured a good working culture but also minimized misunderstandings between the
members and could complete all the tasks on time.
Working in a team with diverse cultural backgrounds requires every member to have a deeper
understanding and respect for different cultures. This not only fosters innovation and
effective team collaboration but also broadens my horizon on different cultural values. Such
learnings enabled me to respect every culture and work toward the common goal of the
group.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
Therefore, from this teamwork, I learned that communication skills play a critical role in
passing true information. In addition, I learned that every individual must have patience and
take equal roles and responsibilities in completing the assignment. Moreover, I learned that
respecting different cultural values significantly enhances teamwork and collaboration. Such
learning has developed me personally and professionally and it would help me to implement
this learning effectively and significantly contribute to the teamwork in the next group
assignments or any other group work.
REFERENCES
Hammer, J. and Pivo, G. (2016). The Triple Bottom Line and Sustainable Economic
Development Theory and Practice. Economic Development Quarterly, [online] 31(1),
pp.25–36. doi:https://doi.org/10.1177/0891242416674808.
Hasanuddin, R., Darman, D., Taufan, M.Y., Salim, A., Muslim, M. and Putra, A.H.P.K.
(2021). The Effect of Firm Size, Debt, Current Ratio, and Investment Opportunity Set on
Earnings Quality: An Empirical Study in Indonesia. The Journal of Asian Finance,
Economics and Business, [online] 8(6), pp.179–188.
doi:https://doi.org/10.13106/jafeb.2021.vol8.no6.0179.
Li, K. (2023). Liquidity ratios and corporate failures. Accounting and finance, [online] 64(1),
pp.1111–1134. doi:https://doi.org/10.1111/acfi.13174.
Manyanga, W., Kanyepe, J., Chikazhe, L. and Manyanga, T. (2023). The effect of debt
financing on the financial performance of SMEs in Zimbabwe. Cogent Social Sciences,
9(2), pp.1–19. doi:https://doi.org/10.1080/23311886.2023.2282724.
Newman, C., Rand, J., Tarp, F. and Trifkovic, N. (2020). Corporate Social Responsibility in a
Competitive Business Environment. The Journal of Development Studies, 56(8),
pp.1455–1472. doi:https://doi.org/10.1080/00220388.2019.1694144.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567
Tosun, J. (2022). Addressing climate change through climate action. Climate Action, 1(1).
doi:https://doi.org/10.1007/s44168-022-00003-8.
ACC 1201- Data Insights and Financial Performance, Semester I 2024, Case Study 2
Ashok Gurung, 1234567