Vertical Analysis Assessment
Length: 1,200 words (approximately 1,000 words excluding the vertical analysis)
Weighting: 30%
Due: Sunday 28th August 2016 (6pm)
Assignment Overview
The Jasmine Hotel is a medium sized hotel located in the Sydney CBD. It is part of the successful
Jasmine Hotel Group that was established some ten years ago. The hotel group is Australian based, it
does not have operations outside of Australia. The Jasmine Hotel, Sydney is the newest addition to
the group and has been operating for just six months. Without any historical trading results to
compare current performance to, it is appropriate to conduct a vertical analysis of the Profit & Loss
Statement in order to evaluate performance and control day-to-day operations.
As the Food & Beverage Manager you are required to undertake a comparative vertical analysis of
the operational results for the Food and Beverage Department. For this purpose, you are provided
with the performance benchmarks used across the hotel group. Based on this analysis, identify areas
of significant overspend and suggest possible causes.
Assignment Instructions
From the information provided for the Food and Beverage Department you are to:
1. Convert the Profit & Loss Statement to a comparative vertical analysis format.
2. Identify and explain areas of significant overspend in relation to expenses and suggest
possible causes. Address the three most significant areas of overspend only.
3. Select one of the areas of significant overspend identified in part 2. What
data/information/records/source documents (in addition to the Profit & Loss Statement and
vertical analysis) could you review, to fully investigate the actual cause of the overspend?
Written Report Requirements
The assignment should be clearly divided into the three parts detailed above.
The assignment is to be written in Word and submitted online via the submission link on LCB Digital.
A minimum of 75% of your submission must be original (apart from the Profit & Loss Statement and
benchmarks provided). All non-original material must be referenced.
Please note: Do not include an introduction or a conclusion. Be sure to display all percentages in the
comparative vertical analysis to one decimal place.
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