Recent Question/Assignment

A S S I G N M E N T

Wesfarmers Limited had its origins in 1914 as a Western Australian farmers' cooperative. Wesfarmers has since grown into one of Australia’s largest listed companies with diverse operations covering supermarkets, department stores, home improvement and office supplies, coal mining, insurance, energy and fertilisers and industrial and safety products.
RESOURCES
The Entire Wesfarmers Annual Report 2011 is given in another document.
Please refer to the following pages of the report:
Pages
Managing Directors' review 6–8
Income statement 68
Balance sheet 70
Notes to the financial statements 73–144
In addition to the above, the following information is extracted from the Wesfarmers Annual Report and provides the 2009 values for certain items. This information is needed to calculate some of the comparative ratios for 2010:
Item 2009 Value$ m
Shareholders' equity $24,248
Total assets 39,062
Inventories 4,665
Receivables 1,893

QUESTIONS
Question 1
Using the consolidated figures, calculate the following ratios for 2010 and 2011:
Current ratio
Inventory turnover
Total asset turnover
Gross profit margin
Operating profit margin
Debt ratio
Return on equity
Quick ratio
Accounts Receivable turnover
Average collection Period
Question 2
Evaluate the performance and financial standing of the company based on the ratios calculated in
Question 1. Present the results as either an essay or as an executive report.