Ethical Behaviour - Environmental Protection Authority - Accounting and Finance Assessment Answer

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Assignment
Each question provides a guide as to the approximate word length of each answer. It is recommended you are close to these limits, but you do not need to achieve them exactly.

Question 1 
You run a company that provides recycling services to local councils. You are finding that it is a very competitive industry in which to work due to the high costs of separating goods and then processing them in each of your plants.
One of your plants has been accused of polluting a local water way with waste run off from your factory. The EPA (Environmental Protection Authority) conducted an audit of the area and you were found to be non-compliant.
A portion of your waste is particularly dangerous and you have not been able to dispose of it legally for some time due to the high costs you would incur. Whilst you know you need to dispose of the backlog if you pay for the correct disposal method the cost will be significant and will run the business very short of cash. Additionally, you will not be able to achieve the desired profit expected by your
shareholders.
Unfortunately, where your run-off has entered the water way flows into a local swimming spot and many swimmers have suffered serious health consequences that have been traced to your waste.
There is a possibility that some people may have ongoing health issues. The potential legal consequences and compensation to those parties injured by your company’s actions are currently unknown, however you are likely to be liable for a substantial amount given the type of chemical and
its potential consequences.
Given the resulting consequences, do you think reducing nature to a number is beneficial to the environment and accounting? Discuss giving consideration to at least 2 cases and relate them to your business. Your answer needs to be in your own words and correctly referenced to receive full marks.

Question 2
You need to follow the “Assignment Presentation Guide – Company Analysis Guide” available under the “Assignment” tab.
Select a company that is not a Bank/Financial institution from the Library database and download the required financial information.
Please note: do not select a Bank or Financial institution as these companies have minimum liquidity ratios under law and are not as suitable for this activity.

a) Briefly explain the industry the company operates within and any key regulations to which they must adhere.
b) Using the downloaded data, complete a Horizontal Analysis of the Profit and Loss, Balance Sheet,
Cash Flow and Ratios for 2017 and 2018 (if 2019 data is available then use 2018 and 2019 years, do not include 2017, only 2 years are required). Set the $ movement to “no decimal places” and the % movement to “2 decimal places” for the statements. When analysing the ratios please use
2 decimal places for both the $ and % movements.
c) Write a brief report, using the horizontal analysis data, individually analysing the Profit and Loss,
Balance Sheet and Cash Flow Statement. This is to be in your own words and not a report copied from a financial advisor on the internet. Marks will be significantly deducted if it is not in your own words and work. It is not acceptable to simply state one number is bigger than the other and
therefore it is better. You need to explain the importance of the number and why it is better/worse. 
d) Select a minimum of ten ratios, ensuring you include a range of liquidity, profitability and solvency ratios and analyse the company. Where possible use the ratios we have covered in class. As in part c above it is not acceptable to simply state one number is bigger than the other and therefore
it is better. You need to explain the importance of the number and why it is better/worse.

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