NOTES - All ratios must be selected from those identified in your prescribed textbook (Bakry 2016). The use of ratios other than those identified in the textbook and discussed in class will not gain any marks. Include all supporting calculations for any values shown in Questions 1 to 5 in the Appendix. The Appendix is not included in the word count. Note: Marks will not be awarded if no supporting ratio calculations are shown in the Appendix.

In questions 1-4, an analysis is required and not just a description of the ratio. That means you need to explain how the ratio changed over time and what are the main reason(s) for that change, and how that will impact the company’s financial position. Question 5 requires you to synthesise the analyses from questions 1-4 to formulate a well-justified argument/conclusion, which is both logical and critical. In calculating the ratios, assume that the Sales are the Operating Revenues (available in the Profit & Loss statement), and the Sales (i.e. Operating Revenues), for each year specified, are all on credit.

In calculating the ratios, ignore abnormals. You should only use figures before abnormals such as ‘Net profit after tax before abnormals’. Ratios calculated by the Morningstar analyst and available within the database are not to be used as guidance for calculating your ratios. The analyst has calculated some of the ratios using formulas different than the one covered in this unit. The assignment does not require the obtainment of industry/peer group averages for any of the calculated ratios. Where relevant, an industry average has been provided within the question. It is important to note that the objective of the assignment is to compare each of the two companies’ financial performance over the specified two-year period.

Reference List - Include any references you have used and cited in your assignment. Make sure all answers are fully referenced using the Harvard referencing system, including in-text citations and a reference list at the end of your assignment. ASSIGNMENT SUBMISSION - This assessment task is to be submitted online via the Turnitin link within the ‘Assessments - Group Assignment (20%)’ folder on vUWS. This assignment is an online only submission. The only acceptable file types are word files .doc, .docx. There is no need to hand in a hardcopy of your assignment to your tutor. Your submission should not be in any other format and should not include any pictures – all work, including the working out/calculations of the ratios should be typed in Word. Calculations that are handwritten will not receive any marks.

FORMAT - A submission of no less than 1350 words and no more than 1650 words is expected, excluding the reference list and appendix. Submissions must be word processed in either Times New Roman or Arial font, 12 point and 1.5 spaced with a footer on each page including your group leader’s name, student ID and page number. All working out for calculations should be in the Appendix of the assignment and must also be word processed. Handwritten calculations are not acceptable.