Order Details;






Jumbo Interactive Limited





Part 1:     Assignment Submission – Methods and Deadlines



Deadline The assignment is due 24 May 2015. It must be submitted via the assessment tab on Blackboard by 11pm.



Your submission (excluding attachments and appendices) should be approximately 2,500 words in length. This word limit will not be strictly adhered to, so you have some flexibility in deciding on your word length. Assignments submitted after the deadline will be subject to penalties as outlined in the unit plan.


Computing difficulties will not be accepted as a valid excuse for late submission of the assignment. It is the Student’s responsibility to ensure that they access the company’s annual financial report, and it is important that this is done at an early stage so there is time to overcome any computing difficulties.

Part 2: Background on Case Study No 2


The first assessable case study in this course was on BP East. The focus in this first case study was on the technical analysis of the first way out using tools such as ratio analysis and cash flow budget analysis. In Case Study No 2 you are asked, as a potential lender to Jumbo Interactive Ltd, to take a much broader view. Central to this view will be an assessment of the risks that the proposed lending will expose the bank to.



Your Approach To The Lending Deal

You are asked to take a positive approach to the borrower and its request for funding.  This means that your decision to approve/decline this deal should be subject to the real life pressure from your employer to add quality business to your portfolio. This point can be put another way. Almost every lending deal will inevitably have some positive features and some negative features. Your challenge in this assignment is to identify whether there are ways of structuring the deal that minimise (or mitigate) the negatives and enhance the positives so that the deal in overall risk terms is acceptable to the bank. Of course, you have the option to decline the deal if you feel that it is not possible to structure the deal in a way that satisfactorily mitigates the major risks.



The Submission You Are Expected To Write

Against this background you are asked to produce a written submission for this customer.  The submission will end up with a recommendation regarding whether or not you wish to take on this business.  If you do decide to decline the deal then you will still need to write a full submission so that your reasons for declining the deal are clearly developed and explained. In addition, you are expected to say something about under what conditions you would be prepared to reconsider the deal.


While there are many different possible formats for a lending submission, you are asked to adopt the format outlined in the Week 9 lecture handout in your class notes booklet entitled “A Structure for a Lending Submission”. You are asked to include both in-text and end-text references in your assignment. See Attachment 1 for information on correct referencing. Note that referencing is required in order to assist in the marking of this assignment; it is not something that is required of lenders in practical situations.






Part 3: The Jumbo Interactive Limited Case Study



This case study only uses publicly available information on Jumbo Interactive Limited
and involves a hypothetical request for finance.



You work as a Senior Lending Manager in the Corporate Lending Division of Excel Bank.  You had a meeting today with the Chief Executive Officer and the Chief Financial Officer of Jumbo Interactive Limited. During the meeting you were told that Jumbo wish to move all their banking to your Excel Bank. They wish to borrow $5 million from Excel Bank as follows:

  • Term loans of $4 million to put towards the purchase of new computer equipment (purchase price $5million) and the purchase of new commercial property for offices (purchase price $5m). Jumbo is contributing $6m of their own cash towards these purchases.
  • $1 million overdraft facility for ongoing business operations.


Jumbo has good cash balances, but their business operations are expanding and they do not want to tie up all their cash in the purchase of this equipment and offices. Hence the request for these loans from Excel Bank. They will pay off any debt at their existing bank, and close all their existing bank accounts.


Jumbo have asked whether Excel Bank would be willing to provide this funding. The reason they wish to move to your Bank is because Excel Bank has developed a reputation for outstanding customer service.


Jumbo have referred you to the website for the company at where it is possible to access the 2014 annual report to shareholders. The annual report contains financial information for the past two years (2013 and 2014) which is a sufficient number of years for this assignment. The website also provides other background information on the company. Your task is to make a decision as to whether you would provide Jumbo Interactive Limited with this funding; and to write this decision up in the form of a lending submission.



  • You are specifically asked not to contact Jumbo Interactive Limited directly.
  • In researching information for your assignment, the main source will be the company website. There may be other information available on the web (e.g., produced by stockbrokers and others) that analyses the performance of the company and the industry. Students should research any additional information they require. The IBISWorld Database on the ECU library website is an excellent source of industry information. Whilst there are different industry categories that Jumbo could potentially fit into, we will assume for this case study that the industry that Jumbo operates in is described by IBISWorld as “Lotteries in Australia”.
  • To avoid being overwhelmed by the large amount of information contained in the detailed financial statements, you could start by completing Appendices 1, 2 and 3 to the lending submission.
  • You should assume the following in respect of the lending submission:
  • All existing loans and other lending facilities, if any, with their current bankers will be repaid
  • All Company assets will be available to Excel as security
  • All equipment has a useful life of approximately 2 years
  • The customer’s interest rate for all facilities provided by Excel Bank will be 8%
  • You should select loan terms based on the use of the funds and the useful lives of the assets
  • You may make any reasonable assumptions that are necessary to calculate the ratios and complete the submission (for example, if there is no purchases figure you could use cost of sales instead).



Attachment 1


Use of the APA referencing style at Edith Cowan University

Prepared by Marianne Cronin Learning Adviser, Faculty of Business & Law


Edith Cowan University uses the APA (American Psychological Association) style for acknowledging (and respecting) in writing, the work and ideas of other people, organisations and sources.

All references are both in text, that is, in the actual essay or report, and end text, as part of a reference list at the end of the essay or report.

If you would like more information, please refer to the following sources:


  • Publication manual of the American Psychological Association (5th ed.). (2001). Washington, DC: American Psychological Association
  • Jongeling, S.B. (Ed.) and updated by Forlin,C., & Daymond, E. (2006).Referencing guide (8th rev. ed.).Perth: Edith Cowan University, Learning and Development Services.


Some general guidelines for end text referencing:

  1. Titles are in italics.
  2. Titles are written in lower case. Only the first word starts with a capital letter, except for names and other words which always have capital letters
  3. If there is a colon in the title, the first word after the colon starts with a capital letter.
  4. Place of publication usually shows city and country. If in Australia or the USA, use city and state. Only some well known places of publication do not require the entry of state or country.
  5. First names are not used in the reference list – only initials and surnames.
  6. End referencing must be in alphabetical order.
  7. The hanging indent is preferred. Entries should begin to the left and subsequent lines need to be indented with three spaces.


Some guidelines for in-text referencing (In the body of the assignment):
  1. Use surnames, year of publication, as well as page numbers if appropriate.
  2. If the author’s name has been used in the actual text, just add the year, comma and page numbers in brackets, eg According to Castro (2000, p. 23)…..
  3. If the author’s name has not been used in the actual text, type the surname, comma, year, comma and page numbers in brackets, eg Bottlo company made a profit of three million dollars in 2003 (Dawson, 2003, p. 23).
  4. If the author’s name is not mentioned in the source material, write the title instead of the author’s name, followed by the year and page numbers in brackets, eg Management strategies for students at university (2001,p. 37).
  5. For No. 4 above, a shortened version of the title is also possible if it is long. If that is done, use inverted commas around the abbreviated title, eg “Management strategies for students,” 2001, p. 37.
  6. For e-mail, interviews and other “unrecoverable data” use personal communication, for example: (J.M. Marston, personal communication, January 20, 2006). Do not enter these in the reference list.
  7. If an author refers to another author, eg Baker (2005) cites the ideas of Smith, or Smith suggested that managers need to be creative (cited by Baker, 2005). Baker is the primary source (actual text you have) and Smith is the secondary one (you don’t have the original source of Smith). Put only the primary source in the reference list.





End-text referencing examples

1.         Book with one author

Beckford, J. (1998). Quality: A critical introduction (2nd ed.). London: Routledge.



2.         Book with more than one author

Decker, R., & Hirshfield, S. (1998). The analytical engine: An introduction to computer science using the Internet. Boston: P.W.S. Publishing Company.



3.         Edited book with one editor

Nolan, D.R. (Ed.). (1998). The Australasian labour law reforms.  Sydney: The Federation Press.



4.         Edited book with more than one editor

Lindstrand, A., Johanson, J., & Sharma, D.D. (Eds.). (2006). Managing customer relationships on the Internet. Amsterdam: Elsevier.


Please note that the initial after the second name must be followed by a full stop, comma and ampersand (&).



5.         Articles/chapter in edited book (a volume in a series)

Kallunki, J.P., Karjalalainen, P., & Martikainen, M.(2005). Investments in human capital in different institutional environments. In J.T. Sale, S.B. Salter, & D.J. Sharp (Eds.) Advances in International Accounting. (Vol 18, pp. 121-140). Amsterdam: Elsevier.


NB For books, the abbreviation Vol is used before the volume number. This is different in journals.



6.         Dictionary or encyclopaedia

Barnes,T. et al. (Eds.). (1999).The new encyclopaedia of business (5th ed., Vol. 6). Sydney: Weathersone Press.


NB Encyclopaedias and dictionaries – edition and volume are put together in the same brackets – no italics.



7.         Journal article

Carter, J.W., & Peden, E. (2005). The ‘natural meaning’ of contracts. Journal of Contract Law,21, 277-285


NB For journals, the volume number must be in italics and the abbreviation Vol is not used.



8.      Newspaper article – author not known

Trader’s corner (2006, March 8). The Australian, p.37.



9.      Newspaper article – author known

Perinotto, T. (2006, March 8). Westpoint taken to task. The Australian Financial Review, p.9.


10.       Government documents/ corporate authors

Australian Government: Department of Health and Ageing (1999). An active way to better health. Canberra: Australian Government Printing Office.


NB If there is an author, type a colon after the publisher, followed by the author’s name.


11.       Lecture notes and unpublished papers at a meeting

Cronin, M. (2006, March).  Business report preparation. Notes from MBA lecture presented in the Faculty of Business and Law, Edith Cowan University, Churchlands, Western Australia.



12.       Online journal

Ashforth, B.E., & Fugate, M. (2006). Attributional style in work settings: Development of a measure [Electronic version]. Journal of Leadership & Organizational Studies 12 (3), 12-29.



13.       Online document

Scribe, A. (2005). APA crib sheet. Retrieved March 7, 2006, from



  1. Document available on a university program or department Web site – with author

Cronin, M. (1998). Assignment writing: Section 1. Retrieved March 7, 2006, from



15.       As above – organisation as  author

American Psychological Association. (2003). Frequently asked questions (FAQs). Retrieved March 7, 2006, from




M.Cronin,  Business & Law, ECU