Description

For this assessment, students are to utilise the information given to complete the comparative balance sheet for TMH Ltd located in Appendix 1. The relevant information needed is also included. Once completed, students are to analyse the performance of TMH Ltd. By undertaking the following tasks:

1. Prepare a statement of Financial Position

• Include appropriate diagrams and graphs to highlight relevant information

• Ensure compliance with AASB standards

2. Prepare a statement of Financial Performance

• As above, include relevant diagrams and graphs and ensure compliance with relevant legislation and statutory compliance guidelines

3. Once the above statements are completed, students should further analyse the company’s performance by comparing the above data with company goals as stated in Appendix 2.

• State how the company goals have varied from the actual data

• Prepare relevant graphs and diagrams to further highlight these differences

Appendix 1:

TMH Ltd. Comparative Balance Sheets for years ending 30 June 2008 and 2009

Additional Information:

• Profit for year ended 31 June 2009 was $94,000

• Cash received from customers totalled $330,000

• Cash paid for inventory totalled $170,000

• Cash paid for expenses totalled $20,000

• Dividends paid during the year were: $67,000

• During the year, accounts receivable decreased by $10,000

• Cost of new buildings acquired during the year $125,000

• No buildings were deposed of

• Land account was not affected by any transactions, but the fair market value of the land as of 31 June 2008 was $178,000

• Note that expenses included Entertainment Expense of 6,000

Appendix 2

TMH Management had the following aims for 2009:

• To reduce liabilities by 5%

• To increase profits by 8%

• To increase sales by at least 5%