8.Investment decision and limitations If you had $50,000 to invest and you could only invest it in one of your two companies, which would you choose? Justify by giving reasonsfor your decision. You should consider things like potential return on investment,and the overall financial performance and position of the company. You only need to base your decision on the above ratios. State any limitations toyour analysis, that is, what else would you consider before youmake such an investment?(Hint, what is the trend of the ratios in section 7?)

9.Reflection/ critical assessmentReflecting upon your own work and determining if you have met the requirements of the task is an important skill in the work place. How will you know if you havefulfilled the job requirements, how will you know if you have provided the client the information they require? In the workplace, you need to read over the work you have produced andclientrequirements and judge whether or not you have met those requirements and if not, why not? There may even be a checklist ofrequirements provided to ensure that nothing has been missed, just like this assessment task has a rubric which you can use to assess your performance and the standard of your work. I suggest that each team member individually completes this task and then you meet to discuss any differencesand decide which more accurately reflects your work. This is just like two markers will look at a selection of assignments to ensure they are being marked consistently. You may see the requirements differently and/or your response tothose requirements. This is an opportunity to ensure that you are all familiar with and in agreement with what is about to be submitted.

7 RATIO ANALYSIS: - Ratios A2 The milk company Return on assets - Profit/ average total assets -221032/277252 = 0.7972 BLD Boral limited = Profit/ average total assets - 444.6/33.4 = 13.311 Profit margin = Profitet sales - 221032/1304336 = 0.1694 = Profitet sales - 444.6/5800.6 = 0.0766 Working capital - Current assets-current - Current assets current liabilities liabilities = 675699-205389 = 1811.8 - 1392.2 - 470310 = 419.6 Current ratio - Current assets/ current = Current assets/ current liabilities liabilities = 675699/205389 = 1811.8/ 1392.2 = 3.289 - 1.301 Current cash = net cash by operating = net cash by operating debt coverage activities/average activities/average current liabilities current liabilities = 289068/ 397 = 761.6/45000 = 728.130 = 0.0169 Debt to total = total liabilities/ total = total liabilities/ total assets ratio assets assets = 205616/993470 = 3684.8/9543.7 = 0.2069 = 0.3860 Cash debt ratio - Net cash by operating - Net cash by operating activities/average total activities/average total liabilities liabilities = 289068/45107 = 761.6/94.7 = 6.4084 = 8.0422 7 RATIO ANALYSIS: - Ratios A2 The milk company Return on assets - Profit/ average total assets -221032/277252 = 0.7972 BLD Boral limited = Profit/ average total assets - 444.6/33.4 = 13.311 Profit margin = Profitet sales - 221032/1304336 = 0.1694 = Profitet sales - 444.6/5800.6 = 0.0766 Working capital - Current assets-current - Current assets current liabilities liabilities = 675699-205389 = 1811.8 - 1392.2 - 470310 = 419.6 Current ratio - Current assets/ current = Current assets/ current liabilities liabilities = 675699/205389 = 1811.8/ 1392.2 = 3.289 - 1.301 Current cash = net cash by operating = net cash by operating debt coverage activities/average activities/average current liabilities current liabilities = 289068/ 397 = 761.6/45000 = 728.130 = 0.0169 Debt to total = total liabilities/ total = total liabilities/ total assets ratio assets assets = 205616/993470 = 3684.8/9543.7 = 0.2069 = 0.3860 Cash debt ratio - Net cash by operating - Net cash by operating activities/average total activities/average total liabilities liabilities = 289068/45107 = 761.6/94.7 = 6.4084 = 8.0422