Reference no: EM133028288

Financial Accounting

Students will critically review, analyse, and interpret financial and non-financial information and effectively communicate conclusions for the
purpose of shareholder investment.

ASSIGNMENT REQUIREMENTS:

You are an investment advisor who has been asked to consider The Warehouse Group Limited as an investment option. Using a range of techniques you are required to research information related to this company and write a report that analyses and interprets both the financial and non-financial information of this entity. You are to present this information in a formal report and formulate a conclusion as to whether this is a sound investment opportunity.

The assignment is divided into two parts. Part A involves Analysis and Part B Interpretation.

PART A FINANCIAL ANALYSIS

In this part of the assignment, you are required to analyse the annual report of The Warehouse Group Limited based on its latest sets of audited results for the financial years ended 1 August 2021, 2 August 2020 and 28 July 2019. This can be obtained from the investors' page of the company's website, being:

You are required to:

Present the following three (3) tables analysing the financial statements of this firm for the above financial years:
1. Common-size and percentage change statements of financial position
2. Common-size and percentage change statements of comprehensive income
3. Financial ratios

Please follow the following guidance notes:
• You are NOT required to do any interpretation at this stage. Where possible your calculations are to be prepared over three (3) years to facilitate the identification of trends.
• You are required to use the format specified in the working sheets on pages 6-8. A copy of the work sheet templates will be uploaded in the Assignment 2 resource folder.
• Ensure you show and label your calculations accurately.
• You are required to use the formulae specified Chapter 10 of the textbook: Smart, M., Awan, N., & Baxter, R. (2017). Financial Accounting: A New Zealand Perspective (4th Edition), to calculate financial ratios.
• There are also financial ratios readily calculated and provided in the annual reports of The Warehouse Group Limited. You are required to accurately quote those ratios.
• Use the consolidated figures for your calculations.

PART B INTERPRETATION

In this part of the assignment, you are required to interpret the ratios calculated on the annual reports of The Warehouse Group Limited.

Please note: Suggested solution for Part A of this assignment will be posted on Moodle on 3 November 2021 - you should use this in your interpretation.

You are also required to research information relevant to this company using the calculations and evidence completed in Part A of this assignment, and material provided in the company's annual reports, to present a report recommending whether the investor should invest in The Warehouse Group Limited. Your recommendation must fully explain why you have made this decision.

Your report should be structured as follows:

1 Executive summary

2 Introduction
A short introduction to the company and its main economic activities, as well as the purpose of the report, based on the brief. (4.5 marks)

3 Company Overview
Findings and discussion incorporating interpretations of The Warehouse Group Limited's non-financial information under the following headings:

(a) Macro-environment;
(b) Competitive dynamics in the industry; and
(c) The competition strategy

(Hint: Do comparative analyses with similar entities)

Your discussion should include but not be limited to assessing and commenting on the following factors and their implications on the performance and the risks of The Warehouse Group Limited:

- The economic, political, and social characteristics of New Zealand
- The dynamic forces driving competition in the industry; and
- The competitive advantages and strategies that The Warehouse Group Limited pursue

4 Financial Analysis
Findings and discussion incorporating interpretations of The Warehouse Group Limited's financial information under the following headings:

(a) Profitability/Earning Capacity
(b) Financial stability - Liquidity & Leverage
(c) Asset Utilisation / Efficiency
(d) Market Related Performance

Your findings should incorporate the analysis and interpretation of the company's cash flow and segment information.

In making your interpretations you should use and interpret:

• financial and/or non-financial information contained in the annual report;

• other relevant financial and/or non-financial information relating to the company and its economic activities to tell the story behind the figures including:

• activities the company has been involved in during the year that produced the financial results;
• causes for the trends in the financial results;
• evidence that the company is/is not profitable, well managed, and financially stable;
• evidence that the company is/is not able to contribute to the community/committed to a sustainable future/likely to provide stable employment opportunities/will provide a good return for shareholders.

5 Conclusion & Recommendation
Make a statement about the recommended investment decision. Include sufficient evidence to support this recommendation.

6 References
In APA format

7 Presentation

Attachment:- Financial Accounting - Assignment Brief.rar