Reference no: EM132643865
ACCT2213 Accounting in organisations and Society - RMIT University
Stage 1- Preparation and Analysis of Financial statements
Stage 2- Analysis and recommendation report & Micro-credential.
Assignment Description:
You are an investment advisor for a large investment advising firm in Australia. A client wants to invest a substantial amount of money in either Woolworths Group Ltd or a new competitor a listed company Australian Fresh Ltd which is same Industry as Woolworths Group Ltd. They ask you to appraise each company using key data and provide them with a recommendation. You may consider both financial and non-financial information in making this decision. Write your answers in report format.
Stage 1- Preparation and Analysis of Financial statements (Using excel).
In your stage one you are required to prepare and analyse the financial statements of Australian Fresh Ltd and Woolworths Group Ltd.
Australian Fresh Ltd has provided financial information for year ending June 2020.
Additional Information:
• Depreciation for delivery trucks has not been recorded for year ended 30th June 2020. These trucks were purchased on 1st October 2019 to manage the high demand. Australian Fresh decided to use straight line method. These delivery trucks have a scrap value 1000($M) and useful life of 5 years. *Land has unlimited useful life.
• Assets held for sale are highly probable and available for immediate sale within six months.
• Company issued 1270 (Millions) (12 70 000 000) ordinary shares to its shareholders in 2020.
• Australian Fresh Ltd paid out 40% of the profit as a dividend to its shareholders in 2020.
Required:
1. Prepare a classified income statement for Australian Fresh Ltd for the year ended 30th June 2020.
• In Income statement include additional profit measures e.g. Gross profit, EBITDA, EBIT.
• Also, Market performance measures e.g. Earnings per share, dividend for 2020 and dividend per share. (show your working out for each in your working notes.)
2. Prepare a classified balance sheet as at 30th June 2020 for Australian Fresh Ltd.
Australian Fresh Ltd has provided some of the financial information for year ending June 2019 and 2018 respectively which may help you to answer your question 3 (a).
3 (a). Calculate following ratios for Australian Fresh Ltd by using information provided in financial statements above in this document. Write your answer in two decimal places.
And now access link provided in Canvas or alternatively using the below pdf link and pay attention to the information provided in the financial statements as you will find a lot of useful information in them that may help with following questions.
3 (b). Calculate following ratios for Woolworths Group by locating the financial statements. Write your answer in two decimal places.
Stage 2 Analysis and recommendation Report & Micro-credential. (Using word/ pdf file)
The structure of the report requires:
• Title page
• Executive summary
• Table of contents
• Introduction
• Body of work (description of business, sustainability/CSR, ratio analysis, Micro- credential)
• Conclusion
• References
As part of your report, answer the following requirements .
1. Use the information from your research on to provide a brief introduction and description of Woolworths group. In your description include the following;
a. The type of organisation it is (for-profit/not-for-profit; merchandiser/manufacturer; partnership/company etc.)
b. An outline of your business's brief background & its main products/services and activities.
2. Identify and explain Woolworths group's approach to corporate social responsibility and sustainability. In your answer include the following:
a. Within your discussion you must explain the meaning of ‘corporate social responsibility' and ‘sustainability'.
b. What is role of accounting and/or accountants in sustainability. Discuss any three points from knowledge of theory to support your answer.
c. Undertake research to focus on Woolworth's corporate social responsibility and/or sustainability. Identify and comment (must include brief description) on their three pillars of 2020 Sustainability Strategy. (Max 150 words)
d. Comment on Woolworth's environment sustainable core element programs which shows their progress of reducing overall impact on environment and supporting community. (In your answer you must Identify and include any two commitments and their progress (next step) from each pillar of 2020 sustainability strategy- Our 2020 commitments and progress and comment on them) (Max 300-400 words)
e. Comment on how important you believe environmental and social performance of a company is when potential investor analyse a company? Explain how environmental and social factors are likely to create value for /benefit those stakeholders and community.
Woolworth's sustainability report can be accessed here: Annual report\2020 Sustainability Report.pdf
3. Using the ratio analysis from Australian Fresh Ltd and Woolworths group Ltd;
a. Examine and comment on Profitability, Capital structure, Market performance and working capital/liquidity ratios of both companies, highlight your understanding by explaining each group of ratios.
b. Provide your recommendation based on your analysis to a potential investor as to the preferred company for them to invest in. Give any four reasons to support your recommendation. (You may include both financial and non-financial criteria of the company).
4. Now that you have a knowledge of analysing financial statements show your understanding by doing micro credential "Managing Money.
Attachment:- Accounting in organisations and Society.rar