Individual Assignment
Unit: ACC306 – Financial Statement Analysis
Submission Date: 14-September-2015by 9.30 am
Total Marks: The assignment is worth 30% of the total marks
Instructions:
1. You are required to answer all attached questions.
2. Your answer must be uploaded to through turnitin and hand over a printed hardcopy to lecturer.
3. You need to support your answers with appropriate Harvard style references where necessary.
4. The Business Report should be between 3,000 and 3,500 words in length with a table of contents.
5. Only include information in your appendixes that has been directly referred to in the body of your document.
6. Include a title/cover page containing the subject title and code and the name, student id numbers.
7. You will need to support your answers with appropriate references if necessary.
8. Please save the document as ACC306_first name_Surename_Student Number
Eg: ACC306_John_Smith_20150000
Individual Assignment
You are allocated to research an Australian listed company. Please write a well-structured professional report to advise a high net-worth individual who intends to invest in the company. You may consider the following questions in your report.
1. Complete the table below and assess the company’s performance over the last three years.
2. Evaluate long-term solvency of the company over the last three years.
3. Assess the liquidity position of the company as at the latest financial year.
4. Discuss the quality of the financial statements.
FINANCIALSTATEMENTANAYLYSIS--YOURCOMPANY
Companyname:
Companyticker:
Studentname:
Ratiosand OtherAnalysisMeasures Year End (3years)

ROE andDuPontRatios
ROE (NI/OEavg)
Profitability(NI/Sales)
Efficiency(Turnover =Sales/Assetsavg)
Leverage(Leverage=Assetsavg/OEavg)
AdditionalProfitabilityRatios
GrossProfitMargin%[(netRev-COGS) /netRevenue]
Selling General &Administration%(SG&A expense/netRevenue)
ImportantExpensePercentage*(ImportantExpense/netRevenue)
AdditionalEfficiencyRatios
ARTurnover(Sales/ARavg)
DaysReceivablesOutstanding(DRO)[ARavg/(Sales/365)]
Inventory Turnover(COGS /Inventoryavg)
DaysInventory (DI) [Inventoryavg/(COGS/365)]
APTurnover(Purchases/APavg)
DaysPayables Outstanding(DPO)[365 /(Purchases/Accts Payableavg)]
CASHCONVERSION CYCLE(DI-DPO +DRO)
PPETurnover(Sales/NetPPEavg)
AdditionalLeverageRatios
Debt-to-Equity(totalLiabilities /totalOE)
TimesInterestEarned(Earnings beforeInterestExpenseandTaxes /InterestExp)
ReturnonFinancialLeverage(ROE-ROA)
LTDebt-to-Assets(LTDebt, includingcurrent portion/totalAssets)
Cash Liquidity and Cash Sources&Uses
WorkingCapital(CA-CL)
CurrentRatio(CA/CL)
QuickRatio [(Cash+STSecurities+AR)/CL)]
OCFCL(OperatingCF/CL)
OCFCX(OperatingCF/CapitalExpenditures)
Free CashFlow(CashfromOps –NetCap.Expend.)
Growth
Salesgrowth[(cynetRev-pynetRev)/ pynetRev]
NIGrowth[(cyNI-pyNI)/pyNI]
*Choosethemost“important”non-SG&Aexpense.
ACC 306 - Marking Scheme For Assignment
Semester 2, 2015
Assessments Allocated score Your score Excellent
Very Good Good
Average
Poor
Very Poor
85% and more 75 – 84% 65 – 74% 50 – 64% Less than 50% 0%
Question 1 20
Question 2 20
Question 3 20
Question 4 30
Presentation, grammar, spelling, references 10
Total 100
Final Marks 30%
Assessment criteria
Excellent: Work fulfilling the above criteria to an outstanding degree, in particular demonstrating excellence in sustained argument, critical thought and synthesis of material from diverse sources.
Very Good: Work demonstrating extensive knowledge and understanding of major content areas and issues; the ability to appropriately synthesise material from a range of sources; a well developed capacity for critical analysis of key issues and concepts; the ability to present a defensible personal perspective on issues; evidence of wide reading in relevant areas of the discipline; high quality presentation.
Good: Above average work demonstrating good knowledge and understanding of major content areas and issues; demonstration of some capacity for critical analysis; the ability to present a perspective on issues; evidence of reading in relevant areas of the discipline; high quality presentation.
Average: Work of ‘average’ standard which demonstrates a good comprehension both of basic concepts and of more complex issues, based on class work and some further reading in the area; some ability to analyse and compare key concepts and theoretical perspectives; high quality presentation, particularly in regard to structure, expression and referencing.
Marginal: Work which shows a basic understanding of key elements of the subject matter at a descriptive level, based mainly on attendance at lectures; satisfactory presentation with few deficiencies in structure, expression or referencing.
Poor: Work which shows little evidence of knowledge or understanding of the subject matter and is unsatisfactorily presented, particularly in regard to structure, expression and referencing.
Very poor: Work which shows no evidence of knowledge or understanding of the subject matter.