Accounting Problem. Cash flow related

Q3 Examine the following information retrieved from the Wesfarmers Limited and Woolworths financial reports. Wesfarmers Limited Woolworths 2008 2007 2008 2007 $ 000 $'000 $ 000 $'000 Cash flow from operating $1,451 $1,301 2,654.0 2.294.2 activities Cash flow from investing activities Outflow (1.241) (680) (1.733.6) (1, 1 13.4) Payment for property, plant (4.355) (3,562) (262.9) (394.6) and equipment 95 48 243.1) 782.9 Other (5.501) (4,194) (1,753.4) (725.1) Inflow Total Cash flow from financing activities (8.993) (1,165) (7,343.0) (1 1,459.5) Outflow 13,465 4,191 6,406.2 10,160.7 Inflow 4.472 3,026 (936.8) (1,298.8) Total Beginning Cash Balance 216 83 798.8 525.9 Ending Cash Balance 638 216 754.6 798.8 Dividends Paid (754) (765) (862.5) (355.2) Other Information Net Sales 31,650 8,239 17,158.1 42,586.8 Current Assets 8,676 4.024 4,502.2 4,161.0 Non-current Assets 28,630 8,052 11.170.3 10.255.1 Current Liabilities 7.940 7,182 6.424.4 5.502.8 Non-current Liabilities 9.776 1.391 3.012.8 3.398.6 a. Undertake an analysis of the cash flow information given for Wesfarmers and Woolworths. Include in this analysis the computation of the various cash flow ratios. b. Based on the analysis answer the following questions: i. Which business would you expect to be a better short term credit risk? ii. Do you think both companies have adequate cash resources? iii. Assess both companies ability to survive in the longer term? iv. Which company is better at generating cash from their sales revenue