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Intermediate Management Accounting Portfolio Case Study

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ACCT5000 Intermediate Management Accounting Portfolio Case Study
Background: Gouna Limited
Gouna Limited is a company that grew from humble beginnings. Its original shareholders consisted of a collection of cooperatives in the Highlands of New Guinea, whose main source of income was from growing Arabica coffee on their small plots of land. Following a period of high coffee prices, the company expanded their business interests significantly to include the following: poultry farming, coffee processing, coffee exporting, a printing press, a bulk fuel distributorship, fuel service stations, new and used car sales, a mechanical workshop, paper packaging manufacturing, and plantation management services.
The Managing Director Andy Birk originally came as a volunteer to assist the cooperatives, and was integral to the growth of the business entity from cooperatives to a company. ‘Accounting records’ consisted of a multi-column cashbook and a notebook containing narratives of non-cash transactions. Having a healthy balance in the bank account was an indication of ‘good’ performance, and during tougher times, very low-interest government-backed loans were easily accessible via the many development banks that were set up to encourage local businesses during that era.
A year ago, Tony Jessup, a chartered accountant was employed to spruce up the accounting records and overall management process of the company. After a prolonged analysis and study of the various business interests of

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