Analysis of the fosters consolidated income statement

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Reference no: EM131121712 , Length: 5

ASSESSMENT 1 -

Students are required to analyse financial data.  For this assessment, students should refer to the Fosters 2011 Annual Report (Included in package).  Students must complete the following:

1. Detail what authorities / personnel / sources you would have to consult with to ensure the financial data provided is accurate and complete. Give a thorough how you would reconcile the financial data to confirm accuracy.

2. Undertake both a vertical and horizontal analysis of the Fosters consolidated income statements for the years ending 30 June 2010 and 30 June 2011

3. Complete a Profit and Loss report for year ending 30 June 2011 as well as a debt-to-equity ratio for the 2011 financial year.

4. Utilising appropriate models and financial and quantitative data from the Annual Report provide an environmental and further financial analysis of Fosters Group - any suspected problem areas should be highlighted.

5. Assess the Statement of Cash Flows in the Annual report - explain why there was a significant decrease in cash at the end of the year ending 30 June 2011 compared with the previous financial year.

6. Based on the above analyses, comment on the financial performance of Fosters in the last financial year - specifically on the following aspects:

Profitability

Financial Stability

Efficiency

7. If the objective of Fosters management was to consolidate their earnings and post a moderate increase in the previous year's profit, have they achieved this?  Has the above analyses demonstrated this information - if not, undertake a further analysis of the statements to determine this.

8. Lastly, assess the financial potential of Fosters Group Ltd. Using the financial data provided in the 2011 financial report.  Comment on what funding requirements would be required in the future to continue the same rate of growth over the last financial year.  Also list the statutory obligations of the company.

 ASSESSMENT 2 - STUDENT INFORMATION

Students are to utilise the analyses completed in Assessment 2 for Fosters.  For this assessment, students must prepare detailed written advice to the Management of Fosters regarding the following:

- Include all the relevant analyses in Part 2 to compose a detailed written report on financial performance for the year ending 30 June 2011.

On the basis of different ratio we can analysis and explain it:

Board Structure

  • Board independence
  • Board is comprised with independent director.
  • Board are separated with management. It means there is no CEO duality.
  • Board diligence
  • Board held regular meeting to monitor the management.

- Make sure in addition o the financial analysis, you include the following in your report:

  • Discuss compliance protocols in place - are they sufficient to meet statutory requirements? Do they meet all the Corporate Governance principles?
  • Outline reporting and lodgement timeframes for the 2009 business year

- Research and comment on the following

  • What are the financial risks that should be considered - e.g. Debtor default, stability of global economy, operating costs etc?
  • For the above risks, outline options for contingencies - e.g. Insurance options, investment options etc.

- Give advice on how Fosters can ensure they do not have another similar loss of cash at the end of the next financial year

- Include a detailed section on the rights and obligations of the client - ensure you include:

- All relevant laws, i.e. corporation law, legislative protection, contract law, privacy law, taxation legislation etc.

- Conclude with a list of alternative sources of short and long term investment, giving a brief description of each.

Number of Words - 1250 Words / 5 Pages

Style: Other

References: 3.

Reference no: EM131121712

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