GSBS6200 ACCOUNTING AND FINANCIAL MANAGEMENT

SUBMISSION REQUIREMENTS

1.        

2.        The assignment must be type-written. No marks will be specifically awarded for high quality presentation. Marks may, however, be deducted for poor presentation that detracts from the professionalism of the assignment. A copy should be kept.

3.        An Assignment Cover Sheet (go to Blackboard -> General Policy & Forms -> Assignment Cover Sheet) should be completed and attached to your assignment.

4.        The soft copy (in MS Word) of your completed assignment must be submitted to the Turnitin Assignment folder of Blackboard.  The Turnitin code must be written on your Assignment Cover Sheet.

5.        Submit hard copy of your Assignment in class or City hub.

Task: Data Collection  

Visit the website of the Woolworth Limited and download ‘Annual Report 2010’ and ‘Annual Report 2009’.

Link:

http://www.woolworthslimited.com.au/phoenix.zhtml?c=144044&p=irol-reportsannual

Using the ‘Annual Report 2010’ and ‘Annual Report 2009’ of the Woolworth Limited, analyse their four financial statements (Balance Sheet, Income Statement, Statement of Changes in Equity and Cash Flow Statement) along with the relevant notes to the statements.

Required:

(a)     Write a report commenting on the following four aspects of the Woolworth Limited for the years 2009 and 2010. State whether there is any progress in the business from 2009 to 2010.

Profitability analysis: It should include: Gross Profit Margin, Net Profit margin Return on Equity (ROE) and Return on Assets (ROA).

Liquidity analysis: It should include:Current ratio and Quick asset ratio.

Efficiency analysis: It should include: Asset Turnover ratio, Days Inventory turnover, Days debtors and Days creditors.

Financial stability analysis: It should include:Debts to equity ratio, Debt ratio and Equity ratio.  

(Note: Maximum 1000 words for the report comprising of 250 words for each of the above four analyses on profitability, liquidity, Efficiency and financial stability. Calculations, Tables, Graphs and workings are not counted for word limit.).

(b)     Comment on the performance of Woolworth Limited from the viewpoint of a company XYZ , assuming that company XYZ  supply Woolworth a substantial amount of goods on usual credit terms (Note: Maximum 200 words).

Hints:

• Read the notes to the financial statements for necessary clarification of the financial statements.

• In the financial statements, use the figures of the Woolworth Limited, instead of the consolidated figures.

In the report, maintain consistency with two-decimal numbers in the answers