8/10/2019 Assignment 3 - Financial Case Study

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HES5380 Engineering Management 2

Case Study: Financial Analysis and InterpretationInstruction: On the basis of the three financial reports presented for the years 2003 and 2004 forthe Qantas Group, provide an assessment of Qantas in relation to the followins:!

Part I: Analysis of Qantas Group Statement of Financial Performance1. What should the statement of financial performance be called more commonly?2. Earnings before interest and taxes increased significantly for the year while overall

revenues fell. ow this was made possible?!. What is the difference between "depreciation# and #amorti$ation#?%. &orrowing costs are shown separately from the other expenses. Why do you thin' this

separation is made?Part II: Analysis of Qantas Group Statements of Financial Position

1. While the statement is labeled (tatements of )inancial *osition+ what should it becalled more commonly?

2. )igures are provided for both #,antas# and the #,antas -roup#. What is the differencebetween these two entities?

!. he assets are classified as #current and non/current#.a0 What is the difference between these two categories?b0 ow else could the assets be categori$ed?

%. What would the liability account eferred lease benefitsincome represent?

3. Why would an airline have such a high balance in the current liability labeled 4evenuereceived in advance?

5. Why would property+ plant and e6uipment of the ,antas -roup#be greater than property+plant and e6uipment of #,antas#?

Part III: Analysis of Qantas Group Statement of Cash Flows1. 7nterest received and ividend received are both classified as operating activities in this

statement of cash flow for financial year 288%. ow should the classification of thesecash flows change from 2883? 94efer to your lecture notes in the class0.

2. What will the (tatement of :ash )lows be labeled from 2883?!. :hoose the correct cash flow activity section 9operating+ investing ; financing0 to the

followings