HI5001 Accounting for Business Decisions (T2, 2015)

The assignment has two parts namely Part A (65 points) & B (35 points). Part A will require you

to undertake research choosing a company that is listed in the Australian Stock Exchange (ASX).

As a rule, Public Companies engaged in Banking & Financing like ANZ and Westpac,

Retailing like Wesfarmers and David Jones, Airlines like Qantas and Jetstar will not be

allowed. Part B will involve a case study.

The assignment aims to develop an understanding of financial statements structure and their use

in decision-making. The task is to choose a publicly listed company from the Australian Stock

Exchange (ASX) which should be approved by your lecturer (as not to have the same

companies from other groups) and analyse the financial statements.

This group project itself includes several assignments, each of which comprises a part of the

students’ task. However, it is well encouraged to include any additional information that students

may think will be useful in conducting financial statements analysis of the selected company.

The maximum number of members is 5. This is non-negotiable.

General Rules and Requirements:

The report should be prepared by a group with a maximum of three members. Reports must be

confined to 2,500 words (+/- 5%). For Part A, a title page, table of contents page (based on your

report headings), introduction, conclusion and references should be included. Font type should

be Arial (size 11), paragraph spacing should be 1.5. For part B, follow the instructions in the

assigned case or problem.

Note: Any additional material from external sources that you “copy and paste” into your report is

NOT included in the word limit. Also, ensure it is appropriately referenced.

PART A:

Part A1 (10 points)

Provide an executive summary of your company’s background relating to business structure,

operations, services and all other business activities that are conducted, etc.

Part A2 (20 points)

Use the annual report for the year ending 30 June 2014. Your group will need to review the

major sections of this report in order to familiarize yourselves with the content of each of the

financial statements and appropriate notes to the financial statements.

Review the balance sheet of the company and indicate the amount of the following:

a) Total current assets

b) Total non-current assets

c) Total current liabilities

d) Total non-current liabilities

e) Total stockholder’s equity

Compare the above figures with the previous year and compute the percentage increase or

decrease and comment on the comparative financial condition of the company.

Part A3 (15 points)

Review the income statement and indicate the following:

a) Total (operating) revenues

b) Cost of Goods Sold (if relevant)

c) Total expenses (before income taxes)

d) Any non-operating (or extraordinary) gains and losses

e) Earnings per common share

Compare the above figures with the previous year and compute the percentage increase or

decrease and comment on the comparative financial operation of the company.

Part A4 (10 points)

Review the statement of cash flows for the most recent year and indicate the

following:

a) net cash inflow (outflow) from operating activities

b) net cash inflow (outflow) from financing activities

c) net cash inflow (outflow) from investing activities

d) net increase (decrease) in cash during the year

Analyse the Cash Flow Statements for the last 2 years and comment on the cash

position of the company.

Part A5 (10 points)

Review the stockholders’ equity section in your chosen company’s most recent year-end

balance sheet and compare that with the previous year-end balance sheet. Compare percentage

increase or decrease.

List the stockholders’ equity account balances and number of outstanding shares

from these two balance sheets and compute the increase or decrease for each

during this past year.