Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Armstrong Scenic Adventures and Blair's Tropical Discoveries are tour operators based in Cairns in far north Queensland. They both run land and sea adventure tours

image text in transcribed

Armstrong Scenic Adventures and Blair's Tropical Discoveries are tour operators based in Cairns in far north Queensland. They both run land and sea adventure tours and passenger services. You are an analyst employed by the Bank of Palm Cove. Both businesses are seeking additional funds from the Bank of Palm Cove to finance a business expansion. Both Armstrong and Blair are direct competitors and the Bank of Palm Cove is only in a financial position to fund one but not both of the businesses. Your analysis will be a cornerstone in the decision made by the Bank of Palm Cove. Apart from the financial information provided, additional information needs to be considered. 1.The cost of debt (interest rates) at the moment is 2.5% 2.Blair's PPE is relatively new and Blair is also investigating the purchase of a new all-terrain vehicle that has the capacity of 50 passengers which will accommodate them in total comfort especially for the over 50 year age group. 3. The Australian dollar (AUD) to the US dollar (\$US) is 0.70. This is very favourable for international tourists. 4. A new hotel is being built on Green Island and another island is being commercially redeveloped for tourism. 5. The cost of fuel is at its lowest level in seven (7) years. 6. Armstrong's is in a pay dispute with its drivers which has lasted three weeks with a threat of strike action. 7. There has been an increase in Australians travelling to far north Queensland instead of overseas due to the unfavourable exchange rate. 1. Calculate the following ratios that will form part of the basis of your report

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information For Decision Making Readings In Cost And Managerial Accounting

Authors: Alfred Rappaport

3rd Edition

0134643542, 978-0134643540

More Books

Students also viewed these Accounting questions

Question

Is the NSU achieved in its entirety without error?

Answered: 1 week ago