Reference no: EM133030853

BIZ201 Accounting for Decision Making - Laureate International Universities

Scenario Analysis

Learning Outcome 1: Apply relevant accounting concepts to simple business scenarios.

Learning Outcome 2: Interpret and analyse the information contained in general purpose financial statements, to evaluate the overall financial position and performance of a business.

Context:

This assessment is aimed at consolidating your learning from Modules 1-3. In this assessment, you are required to reflect on your understanding of accounting concepts and apply this understanding to business scenarios, as per this brief.

Instructions:
1. Answer questions in Part 1 and 2 at the end of this brief.

2. Submit two files; Excel Workbook and Business Report.

3. Excel workbook is provided on Blackboard. Download it, perform calculations on it, save it and submit with the Business Report.

4. For calculation questions, show all workings through appropriate Excel formulas.

Providing numbers without appropriate Excel formulas will not be accepted.

Woolworths Group Limited

Woolworths Group is a diverse group of retail businesses that began as a bargain store in Australia in 1924. Presently, it consists of three core businesses; Australian Food New, Zealand Food and Portfolio. It operates across Australia and New Zealand and sells a variety of products ranging from fresh food to financial services. In recent years, it has faced volatile growth patterns.

In this assessment, your task is to analyse the financial data of Woolworths Group Limited and devise solutions to move this business forward. The analysis will be based on the data compiled from the Group's Annual Reports. Some information that is useful for this assessment includes:

As this is a critical time for Woolworths, extensive financial investigation must be completed to inform the decision-making process. Woolworths' stakeholders are seeking increased growth, profit and to become more competitive strategically. You are expected to complete an Excel Workbook and Business Report for them.

Part 1 - Excel Workbook Calculations
There are three financial statements provided for Woolworths Group; Consolidated Statements of Profit or Loss, Consolidated Statements of Financial Position and Consolidated Statement of Cash Flows for the most recent four financial years. Provide answers to the following calculations by using appropriate Excel formulas. Numbers without Excel formulas only will not be accepted.

1. Ratio Analysis - Within the Income Statement worksheet, conduct a ratio analysis of the years ended 2020 and 2019. Calculate the listed ratios for profitability, efficiency, liquidity and solvency. Round your answers to two decimal places.

2. Vertical Analysis - Within the Balance Sheet worksheet, conduct a vertical analysis of Statement of Financial Position for the year ended 2020.

Part 2 - Business Report

1. Using the results of the Ratio Analysis in the Excel workbook, comment on Woolworths Group's Profitability, Efficiency, Liquidity and Solvency.

2. Based on the results of your analysis, provide recommendations on areas that need improvement or further investigation. Provide recommendations on improving growth, profit and competitiveness.

3. With reference to the Statement of Cash Flows of Woolworths Group, give reasons for the differences in Net increase/(decrease) in cash and cash equivalents between 2020 and 2019.

Attachment:- Accounting for Decision Making.rar