Jasmine Beauty Enterprise Cases

Accounting Assignment

Name : Teodorus R A
ID No : 29119164
Class : BLEMBA 61

1 a Financial Performance Comparasion JBE vs CNI

2010 2011
Indicators
JBE CNI JBE
Current Asset Ratio 1411% 4376% 3956%
Gross Profit Margin 59% 99% 58%
Debt to Equity 73% 12% 77%
Return on Asset 47% 2% 68%
Return on Equity 84% 2% 69%
Inventory Turn Over 1

b Value JBE for Promotional Activities

2009 2010 2011
Advertising Expense 42,500 171,650 202,946
Sales 545,900 887,566 1,129,538
Gross Profit 260,855 523,884 659,622
Advertising Efficiency 0.16 0.33 0.31
Advertising to Sales 0.08 0.19 0.18
From my opinion the advertising that do by JBE is not effective and efficient because the advertising cannot had a
But the advertising that do by JBE are usefull because the advertising generate the total amount of sales period to
JBE must do the attractive and effective advertising that will attract customer to buy JBE's product

2 a Analysis Horizontal
Jasmine Beauty Enterprise
Balance Sheet as at 31 December 2009 – 2011
2009 2010
% Change
RM RM
Fixed Assets 38,200.00 30,400.00 -20%
Current Assets
Deposits 3,500.00 3,500.00 0%
Accounts receivable 5,573.00 15,480.00 178%
Stock 15,200.00 24,500.00 61%
Cash 13,969.45 27,061.12 94%
38,242.45 70,541.12 84%
Less: Current Liabilities
Accounts payable 0 0
Other current liabilities and accruals 20,000.00 5,000.00 -75%
Working capital 18,242.45 65,541.12 259%
56,442.45 95,941.12
Equity
Initial investment 48,000.00 48,000.00 0%
Retained earnings (beginning) 0 8,442.45
(+) Net profit for the year 8,442.45 47,498.67
0 -8,000.00
Retained earnings (ending) 8,442.45 47,941.12 468%
56,442.45 95,941.12

Jasmine Beauty Enterprise

Profit and Loss Account for the year ended 31 December 2009 – 2011

2009 2010
% Change
RM RM
Sales 545,900.00 887,566.00 63%
Less:
Cost of Goods Sold
Beginning Stock 0 15,200.00
Purchase 300,245.00 372,981.86 24%
Ending Stock -15,200.00 -24,500.00 61%
Cost of Goods Sold: 285,045.00 363,681.86 28%
Gross Profit 260,855.00 523,884.14 101%
Dividend 8.29 78.68 849%
260,893.29 523,962.82 101%
Less:
Operating Expenses
Salary and allowances 92,550.00 152,659.50 65%
Advertising and promotion 42,500.00 171,650.00 304%
Employee Provident Fund 34,980.00 27,606.50 -21%
Petrol, toll and parking 34,550.00 40,260.00 17%
Rental 16,200.00 16,200.00 0%
Depreciation 7,800.00 7,800.00 0%
Telephone, fax and internet 6,561.00 9,517.15 45%
Vehicle maintenance 3,650.00 2,900.00 -21%
Water and electricity 3,330.20 6,015.43 81%
Accommodation 2,588.00 2,929.00 13%
Stamp, post and courier 2,528.64 6,218.27 146%
Premise and office maintenance 1,755.00 440 -75%
Stationary and printing 1,492.50 1,851.30 24%
Medical expenses 925 0 -100%
Accounting fees 500 500 0%
CSR contribution 320 200 -38%
Licensing 150 150 0%
Bank charges 70.5 67 -5%
Operating Expenses: 252,450.84 476,464.15 89%
Net profit 8,442.45 47,498.67 463%

Analysis Vertikal
Jasmine Beauty Enterprise
Balance Sheet as at 31 December 2009 – 2011
2009 2010
% Portion
RM RM
Fixed Assets 38,200.00 50% 30,400.00
Current Assets
Deposits 3,500.00 5% 3,500.00
Accounts receivable 5,573.00 7% 15,480.00
Stock 15,200.00 20% 24,500.00
Cash 13,969.45 18% 27,061.12
38,242.45 70,541.12
Less: Current Liabilities
Accounts payable 0 0% 0
Other current liabilities and accruals 20,000.00 26% 5,000.00
Working capital 18,242.45 65,541.12
56,442.45 95,941.12
Equity
Initial investment 48,000.00 63% 48,000.00
Retained earnings (beginning) 0 0% 8,442.45
(+) Net profit for the year 8,442.45 11% 47,498.67
0 0% -8,000.00
Retained earnings (ending) 8,442.45 47,941.12
56,442.45 95,941.12

Jasmine Beauty Enterprise

Profit and Loss Account for the year ended 31 December 2009 – 2011

2009 2010
% Portion
RM RM
Sales 545,900.00 100% 887,566.00
Less:
Cost of Goods Sold
Beginning Stock 0 15,200.00
Purchase 300,245.00 372,981.86
Ending Stock -15,200.00 -24,500.00
Cost of Goods Sold: 285,045.00 52% 363,681.86
Gross Profit 260,855.00 48% 523,884.14
Dividend 8.29 0% 78.68
260,893.29 48% 523,962.82
 Less:
Operating Expenses
Salary and allowances 92,550.00 17% 152,659.50
Advertising and promotion 42,500.00 8% 171,650.00
Employee Provident Fund 34,980.00 6% 27,606.50
Petrol, toll and parking 34,550.00 6% 40,260.00
Rental 16,200.00 3% 16,200.00
Depreciation 7,800.00 1% 7,800.00
Telephone, fax and internet 6,561.00 1% 9,517.15
Vehicle maintenance 3,650.00 1% 2,900.00
Water and electricity 3,330.20 1% 6,015.43
Accommodation 2,588.00 0% 2,929.00
Stamp, post and courier 2,528.64 0% 6,218.27
Premise and office maintenance 1,755.00 0% 440
Stationary and printing 1,492.50 0% 1,851.30
Medical expenses 925 0% 0
Accounting fees 500 0% 500
CSR contribution 320 0% 200
Licensing 150 0% 150
Bank charges 70.5 0% 67
Operating Expenses: 252,450.84 46% 476,464.15
Net profit 8,442.45 2% 47,498.67

b I think the Company shouldn't spend highly on marketing and promotional because the proportion of advertising
doesn't make the significane increase in sales. The promotion and marketing cost should be spen to retain the cus
value for the company from it. JBE must find the efficient budget of marketing to meet their target so the cost of a
highly revenue for the company. Beside the marketing to expand the business JBE must find the right strategy tha
the product, maybe from the research based on customer need and then JBE can develop it.

The stregth for the JBE is the continously JBE Sales higher from period to period, and JBE performance from perio
movement that showtheir net profit always grow. JBE had a good Debt to Equty ratio that means the source of th
debt. The weakness from JBE is the low capital expenditure they had than the other company in the same busine
growth performance of JBE do not soft, their growth was volatile that make any worry to see the JBE can get the p
must have their best way to make their gross profit higher like reducing their cost like other company in the same
profit JBE can get it can highly uo the profit.

3 a I Think JBE will Success in the loan application because JBE have a good debt to equity ratio and liquid to. JBE perf
very good the make a contionous movement to increase their profit and manage to make their cost very efficient.
had a going concern performance from their financial statement and had a chance to become the big company in
analysis in number 1 & 2 we can see that JBE had a very good performance
b JBE must borrow so much money because to develop their business and JBE was a new born company so it fair if
Loan they get they must think to improve the revenue, manage the cash flow, and efficiently manage their workin
bring back the creditor fund with the interest to. That imply that they must develop their company focus on their
spend can use to develop the marketing and customer retaintion, that imply to increase their revenue. They must
strategy and research to compete and win the customer. Beside of that they must have the competitive adventag
produce and reduce the cost.
 2011
CNI
4150%
99%
12%
3%
4%
302

e the advertising cannot had a big impact to generate Gross profit and sales.
total amount of sales period to period
y JBE's product

2010 2011
% Change
RM RM
30,400.00 29,400.00 -3%

3,500.00 3,500.00 0%
15,480.00 19,700.22 27%
24,500.00 29,250.00 19%
27,061.12 36,764.40 36%
70,541.12 89,214.62 26%

- -
5,000.00 2,255.20 -55%
65,541.12 86,959.42 33%
95,941.12 116,359.42
48,000.00 48,000.00 0%
8,442.45 47,941.12
47,498.67 80,418.30
-8,000.00 -60,000.00
47,941.12 68,359.42 43%
95,941.12 116,359.42

2010 2011
% Change
RM RM
887,566.00 1,129,537.60 27%

15,200.00 24,500.00 61%

372,981.86 474,665.59 27%
-24,500.00 -29,250.00 19%
363,681.86 469,915.59 29%
523,884.14 659,622.01 26%
78.68 100.13 27%
523,962.82 659,722.14 26%

152,659.50 189,323.11 24%

171,650.00 202,945.87 18%
27,606.50 35,149.90 27%
40,260.00 51,235.75 27%
16,200.00 16,200.00 0%
7,800.00 7,800.00 0%
9,517.15 12,111.75 27%
2,900.00 3,690.30 27%
6,015.43 7,255.39 21%
2,929.00 3,727.50 27%
6,218.27 7,913.52 27%
440 559.95 27%
1,851.30 2,355.80 27%
0 0 0%
500 1,000.00 100%
200 300 50%
150 150 0%
67 85 27%
476,464.15 579,303.84 22%
47,498.67 80,418.30 69%

2011
% Portion % Portion
RM
30% 29,400.00 25%

3% 3,500.00 3%
15% 19,700.22 17%
24% 29,250.00 25%
27% 36,764.40 31%
89,214.62

0% 0 0%
5% 2,255.20 2%
86,959.42
116,359.42

48% 48,000.00 40%

8% 47,941.12 40%
47% 80,418.30 68%
-8% -60,000.00 -51%
68,359.42
116,359.42

2011
% Portion % Portion
RM
100% 1,129,537.60 100%

24,500.00
474,665.59
-29,250.00
41% 469,915.59 42%
59% 659,622.01 58%
0% 100.13 0%
59% 659,722.14 58%
 17% 189,323.11 17%
19% 202,945.87 18%
3% 35,149.90 3%
5% 51,235.75 5%
2% 16,200.00 1%
1% 7,800.00 1%
1% 12,111.75 1%
0% 3,690.30 0%
1% 7,255.39 1%
0% 3,727.50 0%
1% 7,913.52 1%
0% 559.95 0%
0% 2,355.80 0%
0% 0 0%
0% 1,000.00 0%
0% 300 0%
0% 150 0%
0% 85 0%
54% 579,303.84 51%
5% 80,418.30 7%

e the proportion of advertising cost and the revenue they get

hould be spen to retain the customer and get the long term
eet their target so the cost of advertising can generate the
must find the right strategy that make the customer want buy
evelop it.

nd JBE performance from period to period show forward

tio that means the source of their fund doesn't dominant from
er company in the same business, CNI for example. The
rry to see the JBE can get the profit or not in the period. JBE
ke other company in the same line business. The more gross

uity ratio and liquid to. JBE performance period to period are
o make their cost very efficient. I think the creditor will see JBE
to become the big company in the beauty industry. From the
 new born company so it fair if JBE need some loan. But From
efficiently manage their working capital. They must firm to
p their company focus on their liquidity. The money they
ease their revenue. They must have the efficient marketing
have the competitive adventage to from their operation to