Hello please refer to part 4 from the question paper

I have attached the past student work for your reference just have to follow the format if you feel comfortable with

I have attached the necessary calculations and answers required in part 1,2 and 3

It will be a four page response report with intro, body, limitation of analysis and conclusion with one of my team members work

You can ignore the calculation being done just take it from the parts and consolidate closey with the past student work's format

Blackmores Limited Consolidated Statement of Profit or Loss and Other Comprehensi For financial Year ended 30 June Sales 2015 $'000 2014 $'000 471,615 2013 $'000 346,760 2012 $'000 326,603 260,832 Royalties - - - 681 Membership - - - 54 Revenue Other income Revenue and other income Promotional and other rebates Changes in inventories of finished goods Raw materials and consumables used 471,615 346,760 326,603 261,567 908 7 936 533 472,523 346,767 327,539 262,100 83,285 59,302 49,487 32,478 5,955 3,422 - - 147,750 112,501 100,358 76,551 Employee benefits expenses 94,353 70,156 64,060 54,910 Selling and marketing expenses 34,779 28,840 34,141 24,462 Depreciation and amortisation expenses 6,391 6,266 5,989 4,922 Operating lease rental expenses 3,519 3,163 2,707 1,664 Professional and consulting expenses 7,372 4,442 3,853 4,011 Repairs and maintenance expenses 3,275 2,869 2,591 2,221 Freight expenses 6,615 5,905 4,973 4,149 Bank charges 1,355 845 840 642 Other expenses 11,565 12,689 13,882 10,711 Total expenses 400,259 306,978 288,836 220,143 72,264 39,789 38,703 41,957 Interest revenue 415 309 174 172 Interest expense (3,847) (5,135) (4,926) (2,933) Net interest expense (3,432) (4,826) (4,752) (2,761) Profit before tax 68,832 34,963 33,951 39,196 (22,276) (9,534) (8,975) (11,390) 46,556 25,429 24,976 27,806 Exchange differences arising on translation of foreign controlled entities 4,158 (1,395) 2,221 113 Net (loss)/gain on hedging instruments entered into for cash flow hedges, net of tax (400) 179 47 (738) Earnings before interest and tax Income tax expense Profit for the year Other comprehensive income Items that may be reclassified subsequently to profit or loss Income tax relating to component of other comprehensive income Other comprehensive income/(expense) for the year, net of tax Total comprehensive income for the year EARNINGS PER SHARE - Basic earnings per share (cents) - Basic earnings per share (cents) - - (14) 170 3,758 50,314 (1,216) 24,213 2,254 27,230 (455) 27,351 270.7 269.1 149.2 149.2 147.9 147.9 165.8 165.8 Limited ss and Other Comprehensive Income 2011 $'000 2010 $'000 2009 $'000 2008 $'000 2007 $'000 2006 $'000 201,196 179,720 172,896 148,903 234,423 214,934 844 873 - - - - - - ### - - - 235,267 215,807 201,196 179,720 172,896 1,325 1,286 519 363 236,592 217,093 201,715 180,083 172,896 149,660 22,907 19,054 18,581 13,587 13,881 11,159 2,047 5,194 (2,437) (2,886) 304 (688) 69,920 65,748 71,338 60,982 56,819 51,334 52,730 48,179 42,212 39,940 37,438 32,811 22,102 19,134 21,078 23,812 23,638 20,491 4,529 4,141 2,444 1,909 1,572 1,855 1,391 1,034 2,289 2,682 2,509 1,707 3,303 2,198 2,753 2,454 1,551 1,247 2,375 1,992 1,795 1,630 1,577 1,196 3,278 3,006 3,091 2,631 2,415 2,123 1,146 881 662 442 444 756 9,331 9,786 7,574 5,929 6,260 5,307 195,059 180,347 171,380 153,112 148,408 129,298 41,533 36,746 30,335 26,971 24,488 20,362 161 427 265 503 - - (2,372) (2,442) (1,372) - - - (2,211) (2,015) (1,107) 503 - - 39,322 34,731 29,228 27,474 24,488 20,362 (12,017) (10,434) (8,446) (8,388) (7,817) (5,911) 27,305 24,297 20,782 19,086 16,671 14,451 (2,161) 341 - - - - (63) (160) - - - - - 148,903 757 209 533 - - - - (2,015) 25,290 714 25,011 20,782 19,086 16,671 14,451 163.2 162.9 146.8 146.4 127.5 127.2 118.4 118.1 104.3 104.1 90.9 90.8 Blackmores Limited Consolidated Statement of Financial Position As on 30 June ASSETS CURRENT ASSETS Cash and bank balances Receivables Other financial assets Inventories Other assets Total current assets NON-CURRENT ASSETS Receivables Property, plant and equipment Investment property Other intangible assets Goodwill Deferred tax assets Other Financial Assets Other assets Total non-current assets Total assets LIABILITIES CURRENT LIABILITIES Trade and other payables Current tax liabilities Interest-bearing liabilities Other financial liabilities Provisions Other liabilities Total current liabilities NON-CURRENT LIABILITIES Interest-bearing liabilities Provisions Deferred tax liabilities Other liabilities Total non-current liabilities Total liabilities Net assets EQUITY CAPITAL AND RESERVES Issued capital Reserves Retained earnings Total equity 2015 $'000 2014 $'000 2013 $'000 2012 $'000 2011 $'000 36,931 107,076 38,665 5,172 187,844 18,599 70,567 38,742 3,468 131,376 17,963 63,956 39,892 2,219 124,030 11,960 53,698 31,786 2,549 99,993 10,168 43,030 23,749 1,574 78,521 60,735 2,160 18,530 16,863 6,713 562 105,563 293,407 63,613 2,160 18,363 16,863 3,815 404 105,218 236,594 65,681 2,160 17,933 17,575 3,683 291 124 107,447 231,477 65,916 2,160 2,257 657 3,623 144 21 74,778 174,771 2,500 64,926 2,160 2,012 657 2,335 19 74,609 153,130 94,908 12,862 6,284 944 114,998 49,153 2,793 5,471 623 58,040 38,369 6 593 5,219 848 45,035 34,937 2,117 363 4,570 37 42,024 25,843 3,570 155 3,653 33,221 44,000 730 202 562 45,494 160,492 132,915 73,000 906 422 74,328 132,368 104,226 87,000 722 396 273 88,391 133,426 98,051 45,000 908 673 46,581 88,605 86,166 40,000 792 5 40,797 74,018 79,112 37,753 8,063 87,099 132,915 34,502 3,227 66,497 104,226 30,996 4,394 62,661 98,051 25,348 1,764 59,054 86,166 25,348 1,594 52,170 79,112 mited inancial Position 2010 $'000 2009 $'000 2008 $'000 2007 $'000 2006 $'000 21,507 33,994 22,555 2,429 80,485 13,716 38,411 35 16,072 1,373 69,607 12,153 28,216 1,777 17,506 2,111 61,763 10,129 29,020 1,178 15,213 1,419 56,959 6,497 26,277 437 14,425 1,051 48,687 2,500 66,148 2,160 716 2,326 14 73,864 154,349 67,214 ### 1,739 ### 12 68,965 138,572 53,769 1,332 10 55,111 116,874 23,818 2,361 26 26,205 83,164 17,504 2,018 75 19,597 68,284 26,575 3,992 660 3,230 34,457 25,820 2,119 3,000 1,109 2,918 ### 34,966 21,035 3,407 3,351 27,793 17,121 15,808 2,784 2,723 22,628 174 2,822 1,615 20,419 47,356 741 5 48,102 82,559 71,790 44,356 682 ### ### 45,043 80,009 58,563 37,956 600 174 38,730 66,523 50,351 15,397 674 979 17,050 39,678 43,486 10,000 598 481 11,079 31,498 36,786 25,348 2,470 43,972 71,790 21,680 876 36,007 58,563 19,264 1,257 29,830 50,351 17,401 1,657 24,428 43,486 15,932 810 20,044 36,786 Blackmores Limited Ratio Analysis S No Name of Ratio Formula 1 Profit Margin Net Profit/Total Revenue 2 Return on Equity Net Income/Average Shareholder's Equity 3 Assets Turnover Ratio Net Sales/Average Total assets 4 Receivables Turnover Net Credit Sales/Average Accounts Receivables 5 Inventory Turnover Cost of Goods Sold/Average Inventory 6 Current Ratio Current Assets/Current Liabilities 7 Quick Ratio Quick Assets/Current Liabilities 8 Cash Flow to Current Liabilities Cash Flow from Operations/Average Current Liabilities 9 Debts to assets Ratio Total Debts/Total Assets 10 Debts to Equity Ratio Total Debts/Total Equity 2015 2014 2013 9.85% 7.33% 7.63% 39.26% 25.14% 27.12% 1.78 1.48 1.61 5.31 5.16 5.55 6.26 4.65 4.75 1.63 2.26 2.75 1.25 1.54 1.82 0.82 0.73 0.51 0.55 0.56 0.58 1.21 1.27 1.36 Blackmores Limited Vertical Analysis of Profit or Loss and Other Comprehensive Income For financial Year ended 30 June Sales 2015 $'000 2014 $'000 2013 $'000 2012 $'000 99.81% 100.00% 99.71% 99.52% Royalties 0.00% 0.00% 0.00% 0.26% Membership 0.00% 0.00% 0.00% 0.02% 99.81% 100.00% 99.71% 99.80% 0.19% 0.00% 0.29% 0.20% 100.00% 100.00% 100.00% 100.00% 17.63% 17.10% 15.11% 12.39% 0.00% 0.00% 1.82% 1.31% Raw materials and consumables used 31.27% 32.44% 30.64% 29.21% Employee benefits expenses 19.97% 20.23% 19.56% 20.95% Selling and marketing expenses 7.36% 8.32% 10.42% 9.33% Depreciation and amortisation expenses 1.35% 1.81% 1.83% 1.88% Operating lease rental expenses 0.74% 0.91% 0.83% 0.63% Professional and consulting expenses 1.56% 1.28% 1.18% 1.53% Repairs and maintenance expenses 0.69% 0.83% 0.79% 0.85% Freight expenses 1.40% 1.70% 1.52% 1.58% Bank charges 0.29% 0.24% 0.26% 0.24% Other expenses 2.45% 3.66% 4.24% 4.09% Total expenses 84.71% 88.53% 88.18% 83.99% Earnings before interest and tax 15.29% 11.47% 11.82% 16.01% Interest revenue 0.09% 0.09% 0.05% 0.07% Interest expense -0.81% -1.48% -1.50% -1.12% Net interest expense -0.73% -1.39% -1.45% -1.05% Profit before tax 14.57% 10.08% 10.37% 14.95% Income tax expense -4.71% -2.75% -2.74% -4.35% Profit for the year Other comprehensive income 9.85% 0.00% 7.33% 0.00% 7.63% 0.00% 10.61% 0.00% Items that may be reclassified subsequently to profit or loss 0.00% 0.00% 0.00% 0.00% Exchange differences arising on translation of foreign controlled entities 0.88% -0.40% 0.68% 0.04% -0.08% 0.05% 0.01% -0.28% 0.00% 0.00% 0.00% 0.06% Revenue Other income Revenue and other income Promotional and other rebates Changes in inventories of finished goods Net (loss)/gain on hedging instruments entered into for cash flow hedges, net of tax Income tax relating to component of other comprehensive income Other comprehensive income/(expense) for the year, net of tax Total comprehensive income for the year 0.80% 10.65% -0.35% 6.98% 0.69% 8.31% -0.17% 10.44% Blackmores Limited Vertical Analysis of Consolidated Statement Financial Position As on 30 June ASSETS CURRENT ASSETS Cash and bank balances Receivables Other financial assets Inventories Other assets Total current assets NON-CURRENT ASSETS Receivables Property, plant and equipment Investment property Other intangible assets Goodwill Deferred tax assets Other Financial Assets Other assets Total non-current assets Total assets LIABILITIES CURRENT LIABILITIES Trade and other payables Current tax liabilities Interest-bearing liabilities Other financial liabilities Provisions Other liabilities Total current liabilities NON-CURRENT LIABILITIES Interest-bearing liabilities Provisions Deferred tax liabilities Other liabilities Total non-current liabilities Total liabilities Net assets EQUITY CAPITAL AND RESERVES Issued capital Reserves Retained earnings Total equity 2015 $'000 2014 $'000 2013 $'000 2012 $'000 12.59% 36.49% 0.00% 13.18% 1.76% 64.02% 7.86% 29.83% 0.00% 16.37% 1.47% 55.53% 7.76% 27.63% 0.00% 17.23% 0.96% 53.58% 6.84% 30.72% 0.00% 18.19% 1.46% 57.21% 0.00% 20.70% 0.74% 6.32% 5.75% 2.29% 0.00% 0.19% 35.98% 100.00% 0.00% 26.89% 0.91% 7.76% 7.13% 1.61% 0.00% 0.17% 44.47% 100.00% 0.00% 28.37% 0.93% 7.75% 7.59% 1.59% 0.13% 0.05% 46.42% 100.00% 0.00% 37.72% 1.24% 1.29% 0.38% 2.07% 0.08% 0.01% 42.79% 100.00% 32.35% 4.38% 0.00% 0.00% 2.14% 0.32% 39.19% 20.78% 1.18% 0.00% 0.00% 2.31% 0.26% 24.53% 16.58% 0.00% 0.00% 0.26% 2.25% 0.37% 19.46% 19.99% 1.21% 0.00% 0.21% 2.61% 0.02% 24.05% 15.00% 0.25% 0.07% 0.19% 15.51% 54.70% 45.30% 30.85% 0.38% 0.00% 0.18% 31.42% 55.95% 44.05% 37.58% 0.31% 0.17% 0.12% 38.19% 57.64% 42.36% 25.75% 0.52% 0.39% 0.00% 26.65% 50.70% 49.30% 12.87% 2.75% 29.69% 45.30% 14.58% 1.36% 28.11% 44.05% 13.39% 1.90% 27.07% 42.36% 14.50% 1.01% 33.79% 49.30% Blackmores Limited Horizontal Analysis of Profit or Loss and Other Comprehensive Income For financial Year ended 30 June Sales 2015 $'000 2014 $'000 2013 $'000 2012 $'000 36.01% 6.17% 25.22% 11.27% Royalties 0.00% 0.00% -100.00% -19.31% Membership 0.00% 0.00% -100.00% 0.00% 36.01% 6.17% 24.86% 11.18% 12871.43% -99.25% 75.61% -59.77% Revenue and other income 36.27% 5.87% 24.97% 10.78% Promotional and other rebates 40.44% 19.83% 52.37% 41.78% 0.00% -100.00% 74.02% 67.17% Raw materials and consumables used 31.33% 12.10% 31.10% 9.48% Employee benefits expenses 34.49% 9.52% 16.66% 4.13% Selling and marketing expenses 20.59% -15.53% 39.57% 10.68% 1.99% 4.63% 21.68% 8.68% Operating lease rental expenses 11.26% 16.85% 62.68% 19.63% Professional and consulting expenses 65.96% 15.29% -3.94% 21.44% Repairs and maintenance expenses 14.15% 10.73% 16.66% -6.48% Freight expenses 12.02% 18.74% 19.86% 26.57% Bank charges 60.36% 0.60% 30.84% -43.98% Other expenses -8.86% -8.59% 29.61% 14.79% Total expenses 30.39% 6.28% 31.20% 12.86% Earnings before interest and tax 81.62% 2.81% -7.76% 1.02% Interest revenue 34.30% 77.59% 1.16% 6.83% Interest expense -25.08% 4.24% 67.95% 23.65% Net interest expense -28.89% 1.56% 72.11% 24.88% 96.87% 2.98% -13.38% -0.32% 133.65% 6.23% -21.20% -5.22% 83.08% 1.81% -10.18% 1.83% Exchange differences arising on translation of foreign controlled entities -398.06% -162.81% 1865.49% -105.23% Net (loss)/gain on hedging instruments entered into for cash flow hedges, net of tax -323.46% 280.85% -106.37% 1071.43% 0.00% -100.00% -108.24% -18.66% Revenue Other income Changes in inventories of finished goods Depreciation and amortisation expenses Profit before tax Income tax expense Profit for the year Other comprehensive income Items that may be reclassified subsequently to profit or loss Income tax relating to component of other comprehensive income Other comprehensive income/(expense) for the year, net of tax Total comprehensive income for the year -409.05% 107.80% -153.95% -11.08% -595.38% -0.44% -77.42% 8.15% Blackmores Limited Horizontal Analysis of Consolidated Statatement of Financial Position As on 30 June ASSETS CURRENT ASSETS Cash and bank balances Receivables Other financial assets Inventories Other assets Total current assets NON-CURRENT ASSETS Receivables Property, plant and equipment Investment property Other intangible assets Goodwill Deferred tax assets Other Financial Assets Other assets Total non-current assets Total assets LIABILITIES CURRENT LIABILITIES Trade and other payables Current tax liabilities Interest-bearing liabilities Other financial liabilities Provisions Other liabilities Total current liabilities NON-CURRENT LIABILITIES Interest-bearing liabilities Provisions Deferred tax liabilities Other liabilities Total non-current liabilities Total liabilities Net assets EQUITY CAPITAL AND RESERVES Issued capital Reserves Retained earnings 2015 $'000 2014 $'000 2013 $'000 2012 $'000 98.56% 51.74% 0.00% -0.20% 49.13% 42.98% 3.54% 10.34% 0.00% -2.88% 56.29% 5.92% 50.19% 19.10% 0.00% 25.50% -12.95% 24.04% 17.62% 24.79% 0.00% 33.84% 61.94% 27.35% 0.00% -4.52% 0.00% 0.91% 0.00% 75.96% 0.00% 39.11% 0.33% 24.01% 0.00% -3.15% 0.00% 2.40% -4.05% 3.58% -100.00% 225.81% -2.07% 2.21% 0.00% -0.36% 0.00% 694.55% 2575.04% 1.66% 102.08% 490.48% 43.69% 32.45% 0.00% 1.52% 0.00% 12.18% 0.00% 55.16% 0.00% 10.53% 0.23% 14.13% 93.09% 360.51% 0.00% 0.00% 14.86% 51.52% 98.14% 28.11% 0.00% -100.00% -100.00% 4.83% -26.53% 28.88% 9.82% -100.00% 0.00% 63.36% 14.20% 2191.89% 7.16% 35.19% -40.70% 0.00% 134.19% 25.10% 0.00% 26.50% -39.73% -19.43% 0.00% 33.18% -38.79% 21.25% 27.53% -16.09% 25.48% -100.00% 54.58% -15.91% -0.79% 6.30% 9.42% 149.86% 30.98% 11.31% -26.56% 6.12% 93.33% 12.50% -20.48% 14.65% -41.16% 13360.00% 0.00% 0.00% 89.76% 14.18% 50.59% 19.71% 13.79% 8.92% 22.28% 149.09% 6.11% 0.00% 10.66% 13.20% Total equity 27.53% 6.30% 13.79% 8.92% COMPANY ANALYSIS 1 Part 1 - Introduction to Company Annual Report and Financial Statements The purpose of part 1 is to begin your exploration of your company's annual report and corporate governance structure. Part 1 - Question 1: Write a background summary of your assigned company including the following: When and why did your company first commence operation? What is the main or core business of the company? Some companies are diversified and have investments in other industries, for example, Wesfarmers has diverse business operations that cover supermarkets, department stores, home improvement and office supplies; coal production and export; chemicals, energy and fertilisers; and industrial and safety products. Is your assigned company diversified? What industries does the company operate in? Does your assigned company operate solely within Australia or does it operate internationally? Identify the operational locations. Blackmores is an Australian Company that manufactures and supply natural health products and services. The company commenced its operations back in 1930s. The company commenced its operation with a vision of producing high quality products that supports human health and to produce products that meet the highest quality standards. By producing health care products, the company guarantees the people high living standards and healthy life. The core business of the company is to produce health care services and products that are natural with quality ranging from vitamins, herbal, minerals and nutritional supplements. Additionally, the firm involves itself in corporate social responsibility by supporting the community and the environment at large. COMPANY ANALYSIS 2 Blackmores is a diversified company that has diversified its products in different service industries to reduce the risk of earning losses from time to time. The company made Bioceutical acquisition in July 2012 that enhanced revenue by 2013. Additionally, the company has incorporated practitioners to make a reduction in reliance on competitive super market channels. It can be noted that the company does not solely operate in Australia. The company has diversified globally. The company has its operational locations in Singapore, Asia, New Zealand, Malaysia, and china just to name a few. Part 1 - Question 2: (related content - topic 1) What are the headings and sub-headings of the discussion on corporate governance? Heading and sub-headings of the discussion on corporate governance Corporate Governance Statement Board Charter Nominations Committee Charter Audit and Risk Committee Charter People and Remuneration Committee Charter Code of Conduct Continuous Disclosure Policy Share Trading Policy COMPANY ANALYSIS 3 Blackmores Constitution Blackmores Executive Share Plan Trust Deed Diversity Policy Blackmores Workplace Gender Equality Agency Report Part 1 - Question 3: (related content - topic 1) What are the page references for the discussion on corporate governance? (Hint - try the table of contents at the beginning of the annual report.) Briefly summarize the information included in the company's corporate governance report. The corporate governance is referenced on page 32 under the director's report. During the financial year, Blackmores paid a premium in respect of a contract insuring the Directors, the Company Secretary and all Executive Officers of the Blackmores Group against any liability incurred as such a Director, Company Secretary or Executive Officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. STRUCTURE THE BOARD TO ADD VALUE The Company has a Nominations Committee which comprises the full Board and is a Committee of the Board. The proceedings and meetings of the Nominations Committee are governed by the provisions of the Constitution. COMPANY ANALYSIS 4 ACT ETHICALLY AND RESPONSIBLY There is a Code of Conduct for Directors, Senior Executives and employees. It aims to ensure that the Directors and employees act in a manner consistent with best practice of public and commercial business across activities. Part 1 - Question 4: (related content - topic 1) What position was held and what was the composition and total remuneration of the highest paid board member? (Hint - try the Directors' Report.) It was held that the chief executive officer and the managing director were to receive an increase of 2.2% on their fixed annual remuneration as compared to the prior year. The senior executive remuneration was held to be increased by 2.4% compared to the previous year. The total remuneration of the highest paid board member was Ms Holdgate who received a total remuneration of $1,539,287. Part 1 - Question 5: (related content - topic 1) How many \"subsidiary companies\" or \"controlled entities\" are in the group? (Hint; try looking towards the end of the financial statements, near the end of the report). Are the subsidiaries/controlled entities located domestically and or internationally? Identify where they are located. This will give you insight into how widespread the company's operations are and may assist you with your background information. COMPANY ANALYSIS 5 The company subsidiaries are Nominees Pty limited, Blackmores (Taiwan) limited, Pat Health limited and Pure Animal wellbeing Pty limited. They operate internationally and are located in Australia, New Zealand and Asia locations. Part 2 - Financial Statements The purpose of part 2 is to not only introduce students to an actual set of financial statements of a publicly listed company, but to also identify information that may be significant for ratio analysis which will be conducted in Part 3. The financial statements are presented in the financial report section of the company's annual report. For this section you may find it easier to refer to the excel spreadsheets to obtain the financial data. The excel spreadsheet will contain the financial information for the past 10years; however you will only need to refer the data for the past four years in your spreadsheet, (the past three years and the fourth may be required to create averages for some of the ratios in part 3). This will make it easier to refer to the financial data for several years in one excel worksheet. Part 2 - Question 1 (Balance Sheet): (related content - topic 3) What is the amount invested by the company in net assets for the current year? (Hint use total assets less total liabilities). How does this amount differ from the value of net assets for each of the previous three years? Can you identify any reason for the changes? (Hint: look at the individual amounts that make up both the total assets & total liabilities, are there any changes to individual items over this three-year period? Alternatively, you could perhaps look at the notes COMPANY ANALYSIS 6 to the financial statements in the annual report to see if there are any changes in the breakdown of individual items in the reports.) Discuss. The net asset for the current year is $132,915,000 which is an increase from $104,226,000 in 2014. The net asset for 2013 was $98,051,000 showing that indeed the net asset has been increasing over the period of three years. From the company financial statements notes, the increase in the net assets is attributed to the increase in the cash and bank balances, receivables and trade payables items. Part 2 - Question 2 (Balance Sheet): (related content - topic 3) How much was the total equity for the current year? How does this differ from the total equity in each of the previous three years? Can you identify any reason if there are any changes? Discuss. The total equity for the current year is $87,099,000 which improved from $66,497,000 in 2014. However, the total equity for 2013 was much higher as it was $62,661,000 which is much lower than that of the current yea. It can now be ascertained that the total equity has increased over the three year period. Part 2 - Question 3 (Balance Sheet): (related content - topic 3) How much was the total current assets for the current year and what are the components classified under this heading? Is there any difference in the value of total current assets for each of the previous three years? Can you identify any reason if there are any changes? Discuss. (Hint: you may need to refer to the notes to the financial statements in the annual report to review more detailed information.) COMPANY ANALYSIS 7 The total current assets are $187,000,000 which is an increase from $131,376,000 in 2014. The current asset for 2013 was $124,030,000 which shows that the current assets have been increasing over time and therefore it is affirmed that 2015 has the highest number of current assets over the other years. Part 2 - Question 4 (Balance Sheet): (related content - topic 3) What are the items listed under non-current liabilities? Are there any new non-current liabilities in the current year that were not there in the previous three years? (Hint: you will need to look in the notes to the accounts to see the breakdown of non-current liabilities). Items listed in the non-current liabilities include interest-bearing liabilities, provisions, deferred tax liabilities and other liabilities. Part 2 - Question 5 (Income Statement): (related content - topic 4) How much was net profit for the current year? How does this compare to the net profit for each of the previous three years? Can you identify any particular revenues or expenses that may have led to changes in the profit figures over the three-year period? Discuss. The current year net profit is $46,556,000 which increased from $24,976,000 in 2014 . This was a decrease as compared to $27,806,000 in 2013. This shows that the net profit has been increasing over the three year period. The items that have led to the change in the net profit include raw materials, employee benefit expense and selling and marketing expenses. Part 2- Question 6 (Income Statement) (related content - topic 4) COMPANY ANALYSIS 8 Is the total revenue in the current year greater or less than the total annual revenue recorded in each of the previous three years? Discuss. The current total revenue for the company is greater than the three previous years' total revenue. It can be exhibited that the company total revenue for 2015 was 471,615,000 which is greater than that of 2014 which was 346,760,000. From the 2013 annual report, it is evident that the total revenue for 2013 was much less than that of 2014. Additionally, the total revenue for 2013 was the least compared to the two subsequent years. Part 2 - Question 7 (Statement of Cash Flows): (related content - topic 4) How much was the cash flows from operating activities for the current year? What was the largest inflow item and the largest outflow item in the operating activities section? Does this differ from the previous three years? Discuss. The cash flow from operating activities was $71,127,000. Te largest cash out flow from the operating activities was payment to suppliers and employees which amounted to $390,989,000 and the largest cash inflow was receipts from customers which was $480,780,000. The aforementioned amounts have been increasing over the last three years signifying that the company has been experiencing an increasing in the cash inflows and outflows respectively Part 2 - Question 8 (Statement of Cash Flows): (related content - topic 4) How much was the cash flow from investing activities in the current year? Has the company had any new investing cash flows in the current year compared to the previous three years? If they did, list the activities (Hint: it may be necessary to look in the notes to the accounts). COMPANY ANALYSIS 9 The cash flow from the investing activities was $(3,191,000). From the cash statement, it can be ascertained that the company had no new investing cash flows as there is no change in the investing activities. Part 2 - Question 9 (Statement of Cash Flows): (related content - topic 4) What was the net change in cash flows in the current year? How does this change compare to the previous three years? Discuss. The net change in cash flow for the company is $71,127,000 which has been increasing for the last three years. The net cash flow increased from $22,014,000 in 2013 which increase to $37,491,000 in 2014. This shows a significant improvement in the net change in cash flow for the company. COMPANY ANALYSIS 10 References Blackmores. (2013). Blackmores Annual Report. Retrieved from: Blackmores%20Annual%20Report%202013.pdf Blackmores. (2015). Blackmores Annual Report. Retrieved at: Blackmores%20Annual %20Report%202015.pdf Part 3 Answer 1: Yes, the profit margin has changed during past three years. This is a good result for the company. The profit margin has shown an increasing trend. During 2013 the profit margin was 7.65%, which declined to 7.33% during 2014 and again increased to 9.87% during 2015. The profit margin during 2015 has substantially increased by 2.54%. Answer 2: Return on equity was 27.12% during the year 2013 and declined to 25.14% in the year 2014. But again during the year 2015 the trend improved and the ratio stood at 39.26%. It is always better to have a higher return on equity. The ratio has shown an increasing trend during the year 2015. The primary reason for increase in return on equity in 2015 is increase in profit by 83.08% as compared to year 2014. Answer 3: Asset turnover ratio declined during the year 2014 and stood at 1.48 as compared to 1.61 during the year 2013. During the year 2015 the ratio again improved and stood at 1.78. It is a good result for the company because higher asset turnover ratio is always considered better. The primary reason for increase in the ratio is increase in sales of the company which increased by 36.01%. The change indicates a positive trend and higher utilization of assets during the year 2015. Answer 4: Receivables turnover has changed during past three years. Yes, it is a good result for the company as during the year the ratio improved from 5.16 in 2014 to 5.31 in 2015. It indicates that the company has managed collection of its receivables in a better manner during the year 2015. The receivables turnover was highest at 5.55 during the year 2013. Answer 5: Inventory turnover has significantly improved during the year 2015. In the year 2014 the ratio declined marginally to 4.65 as compared to 4.75 in 2013. But during the year 2015 the ratio improved and stood at 6.26. It is better to have a higher ratio. It is a good result for the company. The ratio indicates that the company has turned its inventory in sales 6.26 times during the year. The ratio has improved significantly and indicates more improvement in future. Answer 6: The current ratio of the company has shown a decreasing trend during past three years. The current ratio was 2.75 during the year 2013 which decreased to 2.26 during the year 2014 and subsequently decreased to 1.63 during the year 2015. It is not a good result for the company as ideal current ratio is 2. The ratio calculates the ability of company in paying off its short- term obligations or current liabilities from its current assets. Here the ratio indicates that the company may find it hard to pay off its current liabilities from its current assets. Answer 7: The quick ratio has also shown a decreasing trend. The quick ratio stood at 1.82, 1.54, 1.25 for the year 2013, 2014 and 2015 respectively. The ideal quick ratio is 1 so it cannot be said that the result is bad for the company. Still the company is having a high ability to pay off its current liabilities from its quick assets. The changes indicate a decline in ratio, but still the ratio can be considered good as it is above 1. Answer 8: Cash flow to current liabilities has increased during the past three years. It is a good result for the company as the ratio has improved from 0.51 in 2013 to 0.82 in 2015. It indicates a higher cash flow from operations in comparison to current liabilities. The changes indicate higher cash available from operations to make payments for current liabilities. Answer 9: The debt to assets ratio has decreased during past three years. It is considered better to have a lower debt to assets ratio. The result is good for the company as the ratio is lowering and decreased from 0.58 in 2013 to 0.55 in 2015. The change indicates that the debts of the company are lowering in comparison to their asset which is a positive sign. The ratio shows a debt of 55 cents against every dollar of assets. Answer 10: The debt to equity ratio of the company has also decreased during past three years. Lower the ratio better it is. The ratio of the company is more than 1 which indicates that the company is having higher debts than its equity. The result good for the company as the ratio has declined from 1.36 in 2013 to 1.21 in 2015. The change indicates decreasing trend and it is good for company as the company is already too high on debts. It should put significant efforts to bring this ratio below 0.50. Answer 11: Horizontal analysis of the income statement depicts the following important trends: The revenue of the company has increased during last four years. The percentage increase during the year 2014 was less at 6.17%, but the company made extraordinary pull back and the revenue increased by 36.01 during the year 2015. The expenses also increased in a higher proportion than sale during the year 2012, 2013 and 2014. But during the year 2015 the expenses were proportionately lower than increase in sale. As a result of higher expenditure, earnings before interest and taxes was lower by 7.76% during the year 2013 but during the year 2015 it increased by 81.62%. Interest expenditure increased sharply by 72.11% during the year 2013, but it declined in subsequent years and was lower by 28.89% during the year 2015. It indicates low interest payments and subsequently lowering of debts by the company in 2015. Growth in profit was lower during the year 2013 by 10.18% but improved to 1.81% in 2014 and further by 83.06% in 2015. Answer 12: Horizontal analysis of the balance sheet depicts the following important trends: Cash and bank balances increased during last four years but the growth was higher at 51.19% during the year 2013 and 98.56% during the year 2015. The growth in current assets was highest at 42.98% during the year 2015 followed by 27.35% and 24.04% during the year 2012 and 2013. The growth in total non-current assets was highest at 43.69% during the year 2013 as well as the growth in total assets was also highest during the same year. The current liabilities increased by 98.14% during the year 2015 due to extraordinary increase of 360.51% in current tax liabilities. The total non-current liabilities increased during the year 2013 but declined during the year 2014 and 2015. Answer 13: Vertical analysis of the income statement for past four years reveals the following results: Total expenses were lowest at 83.99% of total revenue in 2012 and highest at 88.53% of total revenue during the year 2014. The total expenses lowered during the year 2015 and stood at 84.71% of total revenue. Earnings before interest and tax declined during the year 2013 and 2014 as percentage of total revenue but increased during the year 2015 and stood at 15.29% of total revenue. Net interest expenses have declined during past three years. The percentage of profit was lower during the year 2013 and 2014 at 7.63% and 7.33% respectively, but it improved during the year 2015 and stood at 9.85% of total revenue. The highest profit was 10.61% of total revenue during the year 2012. Answer 14: Vertical analysis of the balance sheet for past four years reveals the following results: Total current assets have increased each year as percentage of total assets. The highest increase of 64.02% is during the year 2015 followed by 57.21% in 2012 and 55.53% during the year 2014. The increase in total non-current assets was low during the year 2015 at 35.98% as compared to 46.42% and 44.47% during the year 2013 and 2014 respectively. Current liabilities registered increase during the year 2015 as percentage of total assets and stood highest in 2015 at 39.19% during last four years. Total liabilities increased by 54.70% during the year 2015 which was lower in comparison to the increase in 2014 and 2013. Owing to high increase in profit the total equity increased by 45.30% during the year 2015. The highest increase in equity was during the year 2012 at 49.30%. Part 1 - Introduction to Company Annual Report and Financial Statements The purpose of part 1 is to begin your exploration of your company's annual report and corporate governance structure. Part 1 - Question 1: Write a background summary of your assigned company including the following: When and why did your company first commence operation? What is the main or core business of the company? Some companies are diversified and have investments in other industries, for example, Wesfarmers has diverse business operations that cover supermarkets, department stores, home improvement and office supplies; coal production and export; chemicals, energy and fertilisers; and industrial and safety products. Is your assigned company diversified? What industries does the company operate in? Does your assigned company operate solely within Australia or does it operate internationally? Identify the operational locations. Reg and Hazel Rowe found the company which is an automotive accessories mail order business in 1972 and established retail operations in 2 years later. The company not only produce automotive accessories but also provide retail services. Moreover, with the development of the enterprise, we also entered the bicycle area for providing accessories and retail services. Our retail network spans every state of Australia and both islands of New Zealand, while our international operations and sourcing presence extends into Asia include China, Southeast Asian countries and across to India. Part 1 - Question 2: (related content - topic 1) What are the headings and sub-headings of the discussion on corporate governance? Board Nomination Committee Charter Human Resources & Remuneration Committee Charter SCA Equity Plan Trust Deed 2015 Corporate Governance Statement Minimum Securities Holding Policy Code of Conduct Securities Trading Policy Super Retail Group Constitution Letter To NZ Financial Markets Authority re TM Share Plan 2014 Coporate Governance Statement Super Retail Employee Performance Rights Plan Rules Group Risk Management Policy Dividend Reinvestment Plan Election Form SUL Dividend Reinvestment Plan PRP - Amendment Package Privacy Policy Ethical Sourcing Policy - English Ethical Sourcing Policy - Mandarin Translation Environmental Policy Audit & Risk Committee Charter Board Charter Diversity Policy Gifts & Gratuity Policy Continuous Disclosure Policy Shareholder Communications Policy Part 1 - Question 3: (related content - topic 1) What are the page references for the discussion on corporate governance? (Hint - try the table of contents at the beginning of the annual report.) Briefly summarise the information included in the company's corporate governance report. Page 8 where above the annul report. The Company are accountable to shareholders for the proper management of the business of the Company in a manner consistent with the Company's responsibility to meet its obligations to all stakeholders. Part 1 - Question 4: (related content - topic 1) What position was held and what was the composition and total remuneration of the highest paid board member? (Hint - try the Directors' Report.) The constitution of the Company provides that the number of Directors is to be not less than three nor more than eight. The Board is currently comprised of five directors, four of whom (including the Chairman) hold their positions in a non-executive capacity. The composition and total remuneration of the highest paid board member is the chairman, R W Rowe who received the total remunaeration of 160,000$ Part 1 - Question 5: (related content - topic 1) How many \"subsidiary companies\" or \"controlled entities\" are in the group? (Hint; try looking towards the end of the financial statements, near the end of the report). Are the subsidiaries/controlled entities located domestically and or internationally? Identify where they are located. This will give you insight into how widespread the company's operations are and may assist you with your background information. SCA FT PTY LTD NATIONAL NOMINEES LIMITED J P MORGAN NOMINEES AUSTRALIA LIMITED HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED BNP PARIBAS NOMS PTY LTD All the subsidiary companies are located domestically. Part 2 - Financial Statements The purpose of part 2 is to not only introduce students to an actual set of financial statements of a publicly listed company, but to also identify information that may be significant for ratio analysis which will be conducted in Part 3. The financial statements are presented in the financial report section of the company's annual report. For this section you may find it easier to refer to the excel spreadsheets to obtain the financial data. The excel spreadsheet will contain the financial information for the past 10 years; however you will only need to refer the data for the past four years in your spreadsheet, (the past three years and the fourth may be required to create averages for some of the ratios in part 3). This will make it easier to refer to the financial data for several years in one excel worksheet. Part 2 - Question 1 (Balance Sheet): (related content - topic 3) What is the amount invested by the company in net assets for the current year? (Hint use total assets less total liabilities). How does this amount differ from the value of net assets for each of the previous three years? Can you identify any reason for the changes? (Hint: look at the individual amounts that make up both the total assets & total liabilities, are there any changes to individual items over this three-year period? Alternatively, you could perhaps look at the notes to the financial statements in the annual report to see if there are any changes in the breakdown of individual items in the reports.) Discuss. The net asset are respectively 731,500, 760,400 and 765,300 dollars in 2013, 2014 and 2015. From the company financial statements notes, the increase in the net assets is mainly attributed to inventories and property,plant and equipment. Part 2 - Question 2 (Balance Sheet): (related content - topic 3) How much was the total equity for the current year? How does this differ from the total equity in each of the previous three years? Can you identify any reason if there are any changes? Discuss. The total equity for current year are respectively 765,300, 760,400 and 731,500 dollars in 2015, 2014 and 2013. The total equity was increasing in recent years. Part 2 - Question 3 (Balance Sheet): (related content - topic 3) How much was the total current assets for the current year and what are the components classified under this heading? Is there any difference in the value of total current assets for each of the previous three years? Can you identify any reason if there are any changes? Discuss. (Hint: you may need to refer to the notes to the financial statements in the annual report to review more detailed information.) The total current asset are respectively 502,800, 554,400, 557,700 dollars in 2015, 2014 and 2013. Its components are Cash and cash equivalents, Trade and other receivables, Current tax assets, Derivative financial instruments and Inventories. The value of current assets was keep increasing during the 3 years. The current tax assets and Derivative financial instruments are only showed up in 2015. Part 2 - Question 4 (Balance Sheet): (related content - topic 3) What are the items listed under non-current liabilities? Are there any new non-current liabilities in the current year that were not there in the previous three years? (Hint: you will need to look in the notes to the accounts to see the breakdown of non-current liabilities). There are Trade and other receivables, Investments accounted for using the equity method, Property, plant and equipment and Intangible assets. The trade and other receivables, investments accounted for using the equity method are only displayed on the report of 2014. Part 2 - Question 5 (Income Statement): (related content - topic 4) How much was net profit for the current year? How does this compare to the net profit for each of the previous three years? Can you identify any particular revenues or expenses that may have led to changes in the profit figures over the three-year period? Discuss. The net profit for the current year is 76,900 dollars which was decreased by 108,400 from 2014. There was a non-controlling interest displayed in the form which made the decrease happened. Part 2- Question 6 (Income Statement) (related content - topic 4) Is the total revenue in the current year greater or less than the total annual revenue recorded in each of the previous three years? Discuss. The total revenue 131,600 dollars in 2015 was less than the previous three years. Part 2 - Question 7 (Statement of Cash Flows): (related content - topic 4) How much was the cash flows from operating activities for the current year? What was the largest inflow item and the largest outflow item in the operating activities section? Does this differ from the previous three years? Discuss. The net cash flows for the current year was 182,000 dollars. The largest inflow item and the largest outflow item respectively are receipts from customs and payments to suppliers and employees, of that is as same as the previous three years. Part 2 - Question 8 (Statement of Cash Flows): (related content - topic 4) How much was the cash flow from investing activities in the current year? Has the company had any new investing cash flows in the current year compared to the previous three years? If they did, list the activities (Hint: it may be necessary to look in the notes to the accounts). The cash flow from investing activities in the current year was 71,900$. The company had Proceeds from sale of property, plant and equipment Payments for business acquired, net of cash acquired and Loans to related parties in 2014. Part 2 - Question 9 (Statement of Cash Flows): (related content - topic 4) What was the net change in cash flows in the current year? How does this change compare to the previous three years? Discuss. The net cash flow in current year was 71,900$ which decreased from the peak number of 225,100$ in 2013 Q1: Profit margin in percentage illustrate how much out of every dollar of sales the company actually keeps in earnings. The profit margin in 2015 as 3.44% is lower compare to the past 2 years are 5.08% in 2013 and 5.13% in 2014 respectively 2013: 5.08% 2014: 5.13% 2015: 3.44% Q2: There was a decrease has been shown in 2015 which is 10.63% and that's illustrate the company earn less in every $1 investment in 2015. 2013: 14.46% 2014: 14.53% 2015: 10.63% Q3: There was a decrease happened in 2014. However, the data rebound to almost the same level with 2013. That illustrate the company are getting more income by the investment in their asset. 2013: 1.4101:1 2014: 1.3830:1 2015: 1.4178:1 Q4: The receivable turnover (in days) has decreased over the past 3 years. It is a good result for company because the number of days taken to collect the monies from trade debtors is shorter. 2013: 5.32 2014: 6.10 2015: 4.47 Q5: The inventory turnover are in negative value for the company. It is not a good result as over the three years. In year 2013, it was at -141.41 days, in terms of 2015, it decrease to -142.71 day, but the turnover almost maintains about the same. Q6: The current ratio has increased in the over of past 3 year which is a good result to the company. The current ratio achieve the peak in 2014 and decreased a bit in the next year. To sum up, the current ratio in 2015 is higher than that of 2013. This data illustrate that the company has good liquidity and they have paid off their current liabilities in their current asset. 2013:1.65:1 2014:1.75:1 2015:1.72:1 Q7: The quick ratio has declined in the past 3 year which is not a good result. It indicate that the company's ability of paying off the current liabilities from the current asset has become weak. 2013:0.21 2014:0.21 2015:0.16 Q8: The cash flow (to current liabilities) ratio decreased over the past 3 years. It is not a good result which indicate that the company' s capacity to meet its current liabilities from the net operating cash flow activities has been lowered. 2013: 0.72 2014: 0.53 2015: 0.56 Q9: The debt to asset ratio has increased over the past 3 years but the floating is not remarkable which could not be a good result for company. However It indicate that the company are facing more risk because the net assets decreased. 2013: 50.56% 2014: 51.71% 2015: 51.66% Q10: The debt to equity ratio has increased over the past 3 years as more than 100% which is not a good result for the company. That indicate the company rely on debt funds more than the equity funds to operate the company and the increased liabilities make company cannot earn more net profit. BU1002/BU1902 CASE STUDY WORKBOOK Introduction to Real-World Annual Reports Company explored in the case study: Student Name & Id Number: Table of Contents Overview:..............................................................................................................2 Part 1 - Introduction to Company Annual Report and Financial Statements.........5 Part 2 - Financial Statements................................................................................6 Part 3 - Financial Statement Analysis Tools...........................................................8 Part 4 - Group Response Instructions..................................................................11 BU1002/BU1902 - (BNE/SNG) CASE STUDY WORKBOOK Overview: The case study assignment is an assessment item worth a total of 30% of the final grade for this subject. Note; this assessment is NOT a hurdle assessment; however, students are required to attempt all assessments in order to pass the subject. The case study provides students with the opportunity to: 1. explore subject topics using a real-world example; 2. develop skills required for financial analysis; 3. work collaboratively on a piece of academic work; and 4. learn from their peers regarding their own behavior in group work. The questions in this case study workbook have been designed to introduce and prompt students to answer questions based on the concepts and principles learned the topic content throughout the study period. The workbook consists of; Part 1 - develop a background of the company and an overview of the company's corporate governance principles. Part 2 - familiarise students with the published annual reports and identify differences between results over a period of time. Part 3 - conduct ratio analysis on the company annual report. Part 4 - prepare a comparative analysis of the 4 companies assigned to the group, summarise the findings and present as a response to the investor. In your first tutorial class, your tutor will assign you a company for the case study assignment. You will work as an individual on the assignment completing all of questions for parts 1, 2 and 3 in the case study workbook. Once census date has passed, your tutor will assign you to a group with a maximum of 4 students. Each student in the group will be assigned a different company, this means that there will be 4 different companies within each group. Students may choose members for their group, but each member must have been assigned a different company for analysis. The purpose of the group work component is to conduct a comparative analysis of all 4 companies using the information prepared as individuals Before starting the written response you should read over the marking criteria sheet. The essay should be typed and APA referencing should be used (see http://libguides.jcu.edu.au/apa ). The written submission will be awarded a mark out of 100, which will in turn be converted to a score out of 30. This will be awarded collectively to each group member that has authored the group essay. Group Process The ability to \"lead, manage and contribute effectively to teams\" is a key JCU Generic skill and an important skill sought by employers. An important function of this assessment is for students to work effectively and on a collaborative basis. To facilitate this process, each group will have its own dedicated BU1002/BU1902 Group site on LearnJCU. 2|Page BU1002/BU1902 - (BNE/SNG) CASE STUDY WORKBOOK Establishment of Group Site and Participation: You will have access to your group site within the BU1002/BU1902 subject site on LearnJCU once the groups have been formed after census date. Each Group site on LearnJCU will incorporate links to the following facilities: group Information, file exchange, group discussion, group journal and send emails. All students are required to use their Group site to document all group activity relating to this assessment. It is also expected that once the group site has been formed, each member of the group will upload the answers for their company to the questions in Parts 1 and 2 of the case study workbook. This is a progressive assignment, therefore students will need to continue to prepare answers for their company to the questions in part 3 of the case study workbook to be able to complete the group analysis. The academic staff on your campus will provide you with memo stating the due dates when these answers must be uploaded to the group site. Time will be allocated in tutorial classes for group work on the assignment to facilitate and encourage group collaboration. These tutorial classes will be compulsory for all group members to attend. Online students will also be required to attend weekly collaborate sessions for the purpose of fostering group collaboration. The compulsory classes will be listed in the Subject Outline. Please use the group site on LearnJCU to provide supporting documentation e.g. meeting agendas and minutes and use the other facilities to communicate with group members regarding the response in part 4. Working in Groups Assessment Criteria and Skills Development: Assessment will be based on the criteria set out in the Subject Outline and or LearnJCU. It should also be noted that the Group site will provide the lecturer with information on the extent of each student's contribution and how early, late and consistently they engaged with the site. This information may in some instances, where there seems to be an imbalance in contribution levels across a group and / or a formal complaint has been lodged, be used as a basis upon which to rescale the marks awarded to individuals within the group. Team Conflict and Disbandment: Should you have conflict in your group or a group member withdraws from your group or the subject, it is important to advise the lecturer as soon as possible and well ahead of the due date. Failure to upload content by the stipulated timeframes without reason may also be grounds for removal from the group. The lecturer will retain the right (after hearing claims from students and reviewing the Group site) to decide when a group should be disbanded. In exceptional circumstances, individual assessment options are available to students only after a concerted effort has been made to work with other team members. Where a student has been removed from a group, the remaining members will prepare a comparative analysis on the remaining companies. Students who will be asked to complete the assignment as an individual will be required to complete a comparative assessment of their assigned company with another company provided by the lecturer. The second company will be provided when the student has been removed from the group. Working in groups, under proper conditions, encourages peer learning and peer support. Individual students who do not collaborate within the specified timeframes may be removed from the group and will be required to complete the assignment as an individual. The comparative analysis will be based on the collaboration of remaining group members. 3|Page BU1002/BU1902 - (BNE/SNG) CASE STUDY WORKBOOK Where a student has been removed from a group and will submit as an individual, the maximum weighting for the assignment will be adjusted to 20% for failure to complete in a group. Sometimes individual members of a group will not contribute equally to the task resulting in some students carrying higher workload in the group. This subject uses a peer evaluation sheet to alleviate student concerns about the contribution of individual group members. The lecturer reserves the right to reject peer and self-evaluations that are deemed inconsistent with the information obtained from the Group site. Students who do not contribute to the group essay will receive zero marks for this piece of assessment. Resources: Students will be provided with the following information: Case Study Workbook. Company Annual Reports for the past 3 years. Company financial data (excel spreadsheet) - to conduct ratio analysis. Students are not expected to research beyond these references for this assessment item. The case study contains questions related to weekly study topics for weeks 1 - 7 inclusive. 4|Page BU1002/BU1902 - (BNE/SNG) CASE STUDY WORKBOOK Part 1 - Introduction to Company Annual Report and Financial Statements The purpose of part 1 is to begin your exploration of your company's annual report and corporate governance structure. Part 1 - Question 1: Write a background summary of your assigned company including the following: When and why did your company first commence operation? What is the main or core business of the company? Some companies are diversified and have investments in other industries, for example, Wesfarmers has diverse business operations that cover supermarkets, department stores, home improvement and office supplies; coal production and export; chemicals, energy and fertilisers; and industrial and safety products. Is your assigned company diversified? What industries does the company operate in? Does your assigned company operate solely within Australia or does it operate internationally? Identify the operational locations. Part 1 - Question 2: (related content - topic 1) What are the headings and sub-headings of the discussion on corporate governance? Click here to enter text. Part 1 - Question 3: (related content - topic 1) What are the page references for the discussion on corporate governance? (Hint - try the table of contents at the beginning of the annual report.) Briefly summarise the information included in the company's corporate governance report. Click here to enter text. Part 1 - Question 4: (related content - topic 1) What position was held and what was the composition and total remuneration of the highest paid board member? (Hint - try the Directors' Report.) Click here to enter text. Part 1 - Question 5: (related content - topic 1) How many \"subsidiary companies\" or \"controlled entities\" are in the group? (Hint; try looking towards the end of the financial statements, near the end of the report). Are the subsidiaries/controlled entities located domestically and or internationally? Identify where they are located. This will give you insight into how widespread the company's operations are and may assist you with your background information. Click here to enter text. 5|Page BU1002/BU1902 - (BNE/SNG) CASE STUDY WORKBOOK Part 2 - Financial Statements The purpose of part 2 is to not only introduce students to an actual set of financial statements of a publicly listed company, but to also identify information that may be significant for ratio analysis which will be conducted in Part 3. The financial statements are presented in the financial report section of the company's annual report. For this section you may find it easier to refer to the excel spreadsheets to obtain the financial data. The excel spreadsheet will contain the financial information for the past 10 years; however you will only need to refer the data for the past four years in your spreadsheet, (the past three years and the fourth may be required to create averages for some of the ratios in part 3). This will make it easier to refer to the financial data for several years in one excel worksheet. Part 2 - Question 1 (Balance Sheet): (related content - topic 3) What is the amount invested by the company in net assets for the current year? (Hint use total assets less total liabilities). How does this amount differ from the value of net assets for each of the previous three years? Can you identify any reason for the changes? (Hint: look at the individual amounts that make up both the total assets & total liabilities, are there any changes to individual items over this three-year period? Alternatively, you could perhaps look at the notes to the financial statements in the annual report to see if there are any changes in the breakdown of individual items in the reports.) Discuss. Click here to enter text. Part 2 - Question 2 (Balance Sheet): (related content - topic 3) How much was the total equity for the current year? How does this differ from the total equity in each of the previous three years? Can you identify any reason if there are any changes? Discuss. Click here to enter text. Part 2 - Question 3 (Balance Sheet): (related content - topic 3) How much was the total current assets for the current year and what are the components classified under this heading? Is there any difference in the value of total current assets for each of the previous three years? Can you identify any reason if there are any changes? Discuss. (Hint: you may need to refer to the notes to the financial statements in the annual report to review more detailed information.) Click here to enter text. Part 2 - Question 4 (Balance Sheet): (related content - topic 3) What are the items listed under non-current liabilities? Are there any new non-current liabilities in the current year that were not there in the previous three years? (Hint: you will need to look in the notes to the accounts to see the breakdown of non-current liabilities). Click here to enter text. 6|Page BU1002/BU1902 - (BNE/SNG) Part 2 - Question 5 (Income Statement): CASE STUDY WORKBOOK (related content - topic 4) How much was net profit for the current year? How does this compare to the net profit for each of the previous three years? Can you identify any particular revenues or expenses that may have led to changes in the profit figures over the three-year period? Discuss. Click here to enter text. Part 2- Question 6 (Income Statement) (related content - topic 4) Is the total revenue in the current year greater or less than the total annual revenue recorded in each of the previous three years? Discuss. Click here to enter text. Part 2 - Question 7 (Statement of Cash Flows): (related content - topic 4) How much was the cash flows from operating activities for the current year? What was the largest inflow item and the largest outflow item in the operating activities section? Does this differ from the previous three years? Discuss. Click here to enter text. Part 2 - Question 8 (Statement of Cash Flows): (related content - topic 4) How much was the cash flow from investing activities in the current year? Has the company had any new investing cash flows in the current year compared to the previous three years? If they did, list the activities (Hint: it may be necessary to look in the notes to the accounts). Click here to enter text. Part 2 - Question 9 (Statement of Cash Flows): (related content - topic 4) What was the net change in cash flows in the current year? How does this change compare to the previous three years? Discuss. Click here to enter text. 7|Page BU1002/BU1902 - (BNE/SNG) CASE STUDY WORKBOOK Part 3 - Financial Statement Analysis Tools The purpose of part 3 is to introduce students to using financial statement analysis tools. Hopefully your answers to questions in part 2 may have flagged monetary differences that you can now compare based on percentages using ratio analysis. Ensure you include your calculations in your answer and more importantly, try and identify why percentage changes may have occurred. It is this analysis that is most important in this exercise, trying to identify \"why\" changes have occurred. The group should aim to incorporate the answers and calculations each member has prepared for their assigned company as supporting documentation for the group analysis in the appendix of the final submission. The more analysis provided in the answers to these questions, the more information the group will have to draw on when conducting the comparative analysis for the written response for part 4. Part 3 - Question 1 (Profitability): (related content - topic 5) Has the profit margin changed over the past three years? Is this a good result for the company? Briefly discuss what the change indicates. (Hint: as mentioned above, refer to your horizontal and vertical analysis of the Income Statement and Balance Sheet to assist in your analysis of this ratio.) Click here to enter text. Part 3 - Question 2 (Profitability): (related content - topic 5) Can you identify a trend in the return on equity ratio over the past three years? Comment on the trend. Briefly discuss possible reasons for this trend. Click here to enter text. Part 3 - Question 3 (Asset efficiency): (related content - topic 5) Identify if the asset turnover ratio increased or decreased over the past three years? Is this a good result for the company? Briefly discuss what the change indicates. Click here to enter text. Part 3 - Question 4 (Asset efficiency): (related content - topic 5) Has the receivables turnover changed over the past three years? Is this a good result for the company? Briefly discuss what the change indicates. Clic