Refer to the latest financial report of Wesfarmers Ltd on its web site: www.wesfarmers.com.au and answer the

Question:

Refer to the latest financial report of Wesfarmers Ltd on its web site: www.wesfarmers.com.au and answer the following questions using the consolidated balance sheet and notes to the consolidated financial statements.

Have the receivables (current) of Wesfarmers Ltd increased or decreased over the year? By how much? Is the figure at the end of the year gross or net receivables? What was the balance of the allowance (provision) for doubtful debts (allowance for impairment of receivables) on the same date? What classes of receivables are recorded under the classification Receivables (current)? How is the GST in the receivables reported?
Compare current assets and current liabilities as shown on the balance sheet and comment on the short-term solvency of the company.
What items of receivables are included under the classification Other Assets (current)? Does Wesfarmers Ltd allow for doubtful debts on any of these receivables?
What is the major type of receivables (non-current) held by Wesfarmers Ltd at the end of the year?
What was the amount of bad debts actually written off during the financial year? How does this compare with the previous year?

Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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