Referencing Styles : Harvard 1. VERTICAL ANALYSIS 8 Marks For both companies, prepare a Vertical Analysis of the following reports covering the years 2013, 2014 and 2015 (Refer to the Birt Text page 341 for guidance on how to prepare a Vertical Analysis). (a) Balance Sheet (b) Income Statement 2. TREND ANALYSIS 8 marks For both companies, prepare a Trend Analysis of the following reports covering the years 2013, 2014 and 2015 (Refer to the Birt Text page 340 for guidance on ho … View More 1. VERTICAL ANALYSIS 8 Marks For both companies, prepare a Vertical Analysis of the following reports covering the years 2013, 2014 and 2015 (Refer to the Birt Text page 341 for guidance on how to prepare a Vertical Analysis). (a) Balance Sheet (b) Income Statement 2. TREND ANALYSIS 8 marks For both companies, prepare a Trend Analysis of the following reports covering the years 2013, 2014 and 2015 (Refer to the Birt Text page 340 for guidance on how to prepare a Trend Analysis). (a) Statement of Cash Flows (b) Income Statement 3. RATIO ANALYSIS* Identify ONE key financial ratio in each of the areas of (a) Profitability, (b) Liquidity, and (c) Capital Structure (ie 3 ratios in total) to be calculated and analysed for both companies, and show: • The name of the ratio (eg Current ratio) • The mathematical formula for the ratio (eg Current Assets/Current Liabilities) • A definition of the ratio (ie. This ratio represents…………) 3 Marks Now calculate the ratios you selected above for each company for the years 2013, 2014 and 2015 (remember – use the same three key ratios in each area for both companies). Show details of your calculations. 9 Marks Summary of Important issues from your data analysis VERTICAL ANALYSIS 12 Marks From your Vertical Analysis; identify and comment on any significant trends you can identify between 2013 and 2015 for EACH COMPANY SEPARATELY. For example – in your opinion, has any item in the Balance Sheet or Income Statement changed significantly over the period or is maybe inconsistent with other trends? If so: o Describe the change; o Explain why you think this has happened, and/or describe what you think is happening to the company? o Do you think this trend is good or bad? Say why. Based on the vertical information – comment on which company is better and why. TREND ANALYSIS 12 Marks From your Trend Analysis; identify and comment on any significant trends you can identify between 2013 and 2015 for EACH COMPANY SEPARATELY. (For example – has any item in the Income Statement of a company shown an upward or downward trend? Why have balances or certain types of inflows or outflows in the Cash Flow Statement been increasing or decreasing?). For the changes you identify: o Describe the change; o Explain why you think this has happened, and/or describe what you think is happening to the company? o Do you think this trend is good or bad? Say why. RATIO ANALYSIS 11 Marks Based on your calculations of the ratios above for both companies: Comment on the trends between 2013 and 2015 for EACH Ratio for: • VIRGIN AUSTRALIA, and then • QANTAS Based on the trends – comment on which company is better and why. For this part you are required to examine the financial reports and any other financial information relevant to Virgin Australia and Qantas for the time period since their 2015 annual reports were prepared (ie since September 2015). You will need to use your research skills to find information that represents the financial performance of both companies since 2015 (eg Share price movements; business press reports, information available from share analysts; performance graphs etc), and answer the following question: In no more than 500 words for this part, comment on which company you believe has performed better since 2015, stating clearly why you have formed that conclusion.** **PLEASE NOTE: You must use Internet research to support and supplement your conclusions. In-text referencing is critical to the assignmen