Financial Accounting Fundamentals Assignment
Q1. Download the Annual Financial Statements from Wesfarmers Limited and Woolworths Limited corporate websites for the year ended 30 June 2015 and answer the following questions on both companies:
a. Critically evaluate short term liquidity using three relevant ratios:
b. Critically evaluate the profitability using three relevant ratios:
c. Critically evaluate the financial stability/solvency using three relevant ratios:
Please note that you are required to interpret and discuss the ratio results and not just calculate them.
Based on the calculations above, make a formal report that has the following structure:
- Title Page
- Executive Summary
- Table of Contents
- Introduction
- Company Profile - WESFARMERS LIMITED
- Company Profile - WOOLWORTHS LIMITED
- Measurement of short term liquidity for -WESFARMERS LIMITED and WOOLWORTHS LIMITED
- Measurement of profitability for WESFARMERS LIMITED and WOOLWORTHS LIMITED
- Measurement of solvency for WESFARMERS LIMITED and WOOLWORTHS LIMITED
- Any recommendations based on your analysis of the above ratios
- Additional information that may be useful for further analysis
- Any limitations
- References
Q2. You are required to present your findings on either Solvency, Profitability OR Liquidity to the class. You will be informed which category your group has been allocated.
Each member of the group must speak for a minimum of three minutes. You are required to explain and interpret the ratios for the category and give a final conclusion.