Hello tutors,

My girlfriend granny recently passed away. so he had to rush back to her home and she could not complete her assignment. It would be great if any one of you could help for her. This is a financial accounting problem. The report link is below. please help me, if anyone can.

https://thea2milkcompany.com/wp-content/uploads/A2ML0029-a2-2016-AR_Spreads.pdf

Te Hoe Pakihi Department of Business Bachelor of Applied Management New Zealand Diploma in Business Assessment Two: Assignment One: Part B MARKING GUIDE Intermediate Financial Accounting AMFA601 Financial Accounting NZDB601 / DAB601 Semester Two 2017 Due date: Tuesday 26 September 2017 Time: 4.00pm Instructions: See page 2. Students can choose to do this assignment in pairs or individually. TOPIC TOTAL MARKS Financial Analysis and Interpretation 50 Student Name/ID ................................................................................................... Student Name/ID ................................................................................................... Ara Institute of Canterbury and its division members reserve the right to use electronic means to detect and help prevent plagiarism. Students agree that when submitting this assignment, it may be subject to submission for textual similarity review to Turnitin.com. If an assessment is handed in late without an extension, a penalty of 10% per day will apply, up to a maximum of 50%. If an assessment is received more than five days after the due date, it will not be marked. If a student has a justifiable reason for non-submission of the assessment, they have seven days following the due date to submit an aegrotat application. Should a student wish to appeal any decisions they may do so in writing to the Head of Department within ten days of receiving the decision. This assessment is worth 15% of the total marks for this course. This paper has 11 (11) pages including the cover sheet. Education and Applied Research Division Department of Business MARKING SCHEDULE MARKS ACHIEVED SECTION 1 Executive Summary 2 Introduction 3 Findings and discussions MARKS ASSIGNED 3 3 3.1 External Environment and Strategy 15 3.2 Financial Analysis 20 4 Recommendations 4 5 References 2 6 Presentation 3 Total SECTION 1: EXECUTIVE SUMMARY 50 TOTAL: (___/3 MARKS) = 1 mark, 3 marks in total. The Executive Summary section: Functions well as a 'stand-alone' document to inform the reader about the report, clearly states the purpose of the report and explains the back ground information. Outlines the main findings of the report which are consistent with the main body of the report. States the conclusion of the report which is consistent with the main body of the report. SECTION 2: INTRODUCTION TOTAL: (___/3 MARKS) = 1/2 mark, 3 marks in total. The Introduction section: Outlines the historical background of the company. Describes the economic activities of the company. Explains the objectives of the report (i.e. how to use the findings of the report). Describes the scope (e.g. how many years of financial data are included in the analysis) and the types of data used to support the report. Highlights the limitations of the report. Outlines the sections and their main contents subsequent to this section. . 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury 4/09/17 Page 2 Education and Applied Research Division Department of Business SECTION 3: Findings and discussions - 3.1 external environment and strategy Excellent = 1 mark (a) Macro-environment (maximum 5 marks) Completeness The analyses draw on all of the components of \"PEST\" analysis framework. Comprehensiveness The analyses of all the components are supported with evidence. Relevance The analyses are tightly linked to the company as well as the perspective of making share investment. Conclusiveness The subsection provides a consistent and conclusive evaluation on the Macro-environment of New Zealand. Critical thinking The analyses provides enriched and up to date evidence that shows clear links between the \"PEST\" analysis framework and the company's operations and its macro-environment. (b) Competitive Dynamics in the industry (maximum 5 marks) Completeness The analyses draw on all of the components of \"Five forces\" analysis framework. Comprehensiveness The analyses of all the components are supported with evidence (e.g. referring to other sources or statistics). Relevance The analyses are tightly linked to the company as well as the perspective of making share investment. Conclusiveness The subsection provides a consistent and conclusive evaluation on industrial competition environment. 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury 4/09/17 Page 3 Average/Acceptable = 1/2 mark TOTAL: (___/15 MARKS) Poor No mark The analyses draw on \"PEST\" analysis framework but with major omissions. The analyses of some of the components and some are supported with evidence. The analyses are related to the company but does not consider the perspective of making share investment The subsection provides some evaluation on components of PEST framework but lacks of an overall conclusive remark on the Macroenvironment of New Zealand. The analyses draw on \"PEST\" analysis framework but with omissions. The analysis on macro-environment is missing or not identifiable as a subsection. No components are analysed or any supporting evidence. The analyses neither relate to the company nor concern about the potential investor. The analyses draw on \"Five forces\" analysis framework but with omissions. The analyses of some of the components and some are supported with evidence. The analysis on industry dynamics is missing or not identifiable as a subsection. No components are analysed or any supporting evidence. The analyses are related to the company but does not consider the perspective of making share investment. The subsection provides some evaluation on components of five forces framework but lacks of an overall conclusive remark on the industrial competition environment. The analyses neither relate to the company nor concern about the potential investor. The subsection contains no evaluation or assessment on the Macro-environment of New Zealand. The analysis on macro-environment is missing or not identifiable as a subsection. The subsection contains no evaluation or assessment on the industrial competition environment. Education and Applied Research Division Critical thinking Department of Business Excellent = 1 mark The analyses provides enriched and up to date evidence that shows clear links between the \"Five forces\" analysis framework and the competitive dynamics of the industry. (c) The competition strategy (maximum 5 marks) Completeness The analyses draw on all of the components of \"Porter generic strategies\" analysis framework. Comprehensiveness The analyses of all the components are supported with evidence (e.g. referring to other sources or statistics). Relevance The discussion of the company's strategy implies the key financial characteristics of a company that is pursuing such types of strategy. Conclusiveness The subsection provides conclusive evaluation on the company's competitive strategy (must be correct) with comprehensive justifications (e.g. fitting in the competitive environment, and/or reflected by the company's vision or mission). Critical thinking Total The analyses include two (2) or more of the internal strengths that support the competitive strategy. Marks 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury Average/Acceptable = 1/2 mark The analyses draw on \"Five forces\" analysis framework but with omissions. Poor No mark The analysis on competitive dynamics is missing or not identifiable as a subsection. The analyses draw on \"Porter generic strategies\" analysis framework but with omissions. The analyses of some of the components and some are supported with evidence. The analysis on competition strategy is missing or not identifiable as a subsection. No components are analysed or any supporting evidence. The discussion of the company's strategy implies some financial characteristics of a company that is pursuing such types of strategy. The subsection provides conclusive evaluation on the company's competitive strategy (must be correct) strategy with some justifications. The subsection has no relevance to the company's financial position or performance. The analyses include one (1) of the internal strengths that support the competitive strategy. Marks 4/09/17 Page 4 The subsection contains: No conclusion regarding the strategy; or Wrong conclusion regarding the strategy; or 'stuck in the middle'; or Merely a conclusion with no justification. The analyses include none of the internal strengths that support the competitive strategy. o o o o Marks Education and Applied Research Division Department of Business SECTION 3: Findings and discussions - 3.2 financial analysis (marks for the 5 sections added together and lowest mark removed) Excellent = 1 mark (a) Profitability (maximum 5 marks) Comprehensiveness The analyses encompass five (5) or more identifiable profitability indicators. Depth of analysis The analyses are supported with in-depth identification and explanation (reasons1) for profitability indicators. Two (2) or more references (evidence) are provided. Conclusiveness The subsection provides a consistent and conclusive evaluation on the profitability of the company. Relevance The analyses are tightly linked to the company as well as the perspective of making share investment (forward looking). Critical thinking The analyses include three (3) or more of the following o a reflection on the company's non-financial information that has been discussed in section three o an analysis of segment performance o a cross reference to another subsection of financial analyses( i.e. asset utilisation) o potential negative development (must be supported with reference) o a critique on another published analysis/commentary regarding the company's profitability (must be supported with reference.) (b) Liquidity (maximum 5 marks) Comprehensiveness The analyses encompass three (3) or more identifiable liquidity indicators. Depth of analysis The analyses are supported with in-depth identification and explanation (reasons) for liquidity indicators. Two (2) or more references are provided. Average/Acceptable = 1/2 mark TOTAL: (___/20 MARKS) Poor No mark The analyses encompass three (3) or four (4) identifiable profitability indicators. The analyses are supported with some identification and explanation (reasons) for profitability indicators. At least one reference (evidence) is provided. The subsection provides some consistent evaluation on certain profitability indicators but lacks of an overall conclusive remark on the profitability of the company. The analyses are tightly related to the company however does not consider the perspective of making share investment (forward looking). The analyses include one (1) or two (2) of the following o a reflection on the company's non-financial information that has been discussed in section three o an analysis of segment performance o a cross reference to another subsection of financial analyses( i.e. asset utilisation) o potential negative development (must be supported with reference) o a critique on another published analysis/commentary regarding the company's profitability (must be supported with reference.) The analyses covers no more than two (2) identifiable profitability indicators. The analyses do not included any identification and explanation (reasons) for the profitability indicators. The analyses encompass two (2) or three identifiable liquidity indicators. The analyses covers only one identifiable liquidity indicator. The analyses are supported with some identification and explanation (reasons) for liquidity indicators. At least one reference is provided. The analyses do not included any identification and explanation (reasons) for the liquidity indicators. The subsection contains no evaluation or contradictory evaluations on the profitability of the company. The analyses neither relate to the company nor concern about the potential investor. The analyses include none of the following o a reflection on the company's non-financial information that has been discussed in section three o potential negative development (must be supported with reference) o an analysis of segment performance o a critique on another published analysis/commentary regarding the company's profitability (must be supported with reference.) 1 The reason for a certain performance indicator has to be the actual cause of the trend/features associated with this particular company. It must NOT be what the performance indicator means in general and/or how it is calculated. 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury 4/09/17 Page 5 Education and Applied Research Division Conclusiveness Relevance Critical thinking Department of Business Excellent = 1 mark The subsection provides a consistent and conclusive evaluation on the liquidity of the company. The analyses are tightly linked to the company as well as the perspective of making share investment (forward looking). The analyses include three (3) or more of the following o a reflection on the company's non-financial information that has been discussed in section three o a cross reference to another subsection of financial analyses( i.e. profitability or asset utilisation) o a valid analysis and evaluation of the company's cash flow o potential negative development or immediate liquidity risk (must be supported with reference) o a critique on another published analysis/commentary regarding the company's liquidity (must be supported with reference.) (c) Leverage/financial stability (maximum 5 marks) Comprehensiveness The analyses encompass three (3) or more identifiable financial stability indicators. Depth of analysis The analyses are supported with in-depth identification and explanation (reasons) for financial stability indicators. Two (2) or more references are provided. Conclusiveness The subsection provides a consistent and conclusive evaluation on the long term financial stability of the company. Average/Acceptable = 1/2 mark The subsection provides some evaluation on certain liquidity indicators but lacks of an overall conclusive remark on the liquidity of the company The analyses are tightly related to the company however does not consider the perspective of making share investment (forward looking). The analyses include one (1) or two (2) of the following o a reflection on the company's non-financial information that has been discussed in section three o a cross reference to another subsection of financial analyses( i.e. profitability or asset utilisation) o a valid analysis and evaluation of the company's cash flow o potential negative development or immediate liquidity risk (must be supported with reference) o a critique on another published analysis/commentary regarding the company's liquidity (must be supported with reference.) Poor No mark The subsection contains no evaluation or assessment on the liquidity of the company. The analyses include none of the following o a reflection on the company's non-financial Relevance The analyses are tightly linked to the company as well as the perspective of making share investment (forward looking). The analyses encompass two (2) identifiable financial stability indicators. The analyses are supported with some identification and explanation (reasons) for financial stability indicators. At least one reference is provided. The subsection provides some evaluation on certain financial stability indicators but lacks of an overall conclusive remark on the long term financial stability of the company. The analyses are tightly related to the company however does not consider the perspective of making share investment (forward looking). Critical thinking The analyses include three (3) or more of the following The analyses include one (1) or two (2) of the following 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury 4/09/17 Page 6 The analyses neither relate to the company nor concern about the potential investor. The analyses include none of the following o a reflection on the company's non-financial information that has been discussed in section three o potential negative development (must be supported with reference) o a cross reference to another subsection of financial analyses( i.e. profitability or asset utilisation) o a valid analysis and evaluation of the company's cash flow o potential negative development or immediate liquidity risk (must be supported with reference) o a critique on another published analysis/commentary regarding the company's liquidity (must be supported with reference.) The analyses covers only one identifiable financial stability indicator. The analyses do not included any identification and explanation (reasons) for the financial stability indicator(s). The subsection contains no evaluation or assessment on the long term stability of the company. The analyses neither relate to the company nor concern about the potential investor. Education and Applied Research Division Department of Business Excellent = 1 mark a reflection on the company's non-financial information that has been discussed in section three o a cross reference to another subsection of financial analyses( i.e. profitability or asset utilisation) o potential negative development(must be supported with reference) o a critique on another published analysis/commentary regarding the company's financial stability (must be supported with reference.) (d) Asset utilisation/efficiency (maximum 5 marks) Comprehensiveness The analyses encompass four (4) or more identifiable asset utilisation indicators. Depth of analysis The analyses are supported with in-depth identification and explanation (reasons) for asset utilisation indicators. Two (2) or more references are provided. Conclusiveness The subsection provides a consistent and conclusive evaluation on the asset utilisation/efficiency of the company. o Relevance The analyses are tightly linked to the company as well as the perspective of making share investment (forward looking). 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury 4/09/17 Page 7 o o o o Average/Acceptable = 1/2 mark a reflection on the company's non-financial information that has been discussed in section three a cross reference to another subsection of financial analyses( i.e. profitability or asset utilisation) potential negative development(must be supported with reference) a critique on another published analysis/commentary regarding the company's financial stability (must be supported with reference.) The analyses encompass three (3) or two (2) identifiable asset utilisation indicators. The analyses are supported with some identification and explanation (reasons) for asset utilisation indicators. At least one reference is provided. The subsection provides some evaluation on certain asset utilisation indicators but lacks of an overall conclusive remark on the efficiency of the company. The analyses are tightly related to the company however does not consider the perspective of making share investment (forward looking). o o o Poor No mark information that has been discussed in section three a cross reference to another subsection of financial analyses( i.e. profitability or asset utilisation) potential negative development(must be supported with reference) a critique on another published analysis/commentary regarding the company's financial stability (must be supported with reference.) The analyses covers one or none of the identifiable asset utilisation indicators The analyses do not included any identification and explanation (reasons) for the asset utilisation indicators. The subsection contains no evaluation or assessment on the asset utilisation/efficiency of the company. The analyses neither relate to the company nor concern about the potential investor. Education and Applied Research Division Critical thinking Department of Business Excellent = 1 mark The analyses include three (3) or more of the following o a reflection on the company's non-financial information that has been discussed in section three o an analysis of segment performance o a cross reference to another subsection of financial analyses(e.g. profitability) o potential negative development (must be supported with reference). o a critique on another published analysis/commentary regarding the company's asset utilisation (must be supported with reference.) (e) Share market related performance (maximum 5 marks) Comprehensiveness The analyses encompass two (2) or more identifiable share market indicators and discusses the fact that the company has not paid any dividends. Depth of analysis The analyses are supported with in-depth identification and explanation (reasons) for share market indicators. Two (2) or more references are provided. Conclusiveness The subsection provides a consistent and conclusive evaluation on the share market performance of the company. Relevance Critical thinking The analyses are tightly linked to the company as well as the perspective of making share investment (forward looking). The analyses include three (3) or more of the following o a reflection on the company's non-financial information that has been discussed in section three o a cross reference to another subsection of financial analyses( i.e. profitability or liquidity) 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury 4/09/17 Page 8 Average/Acceptable = 1/2 mark The analyses include one (1) or two (2) of the following o a reflection on the company's non-financial information that has been discussed in section three o an analysis of segment performance o a cross reference to another subsection of financial analyses(e.g. profitability) o potential negative development (must be supported with reference). o a critique on another published analysis/commentary regarding the company's asset utilisation (must be supported with reference.) Poor No mark The analyses include none of the following o a reflection on the company's non-financial information that has been discussed in section three o potential negative development (must be supported with reference) o an analysis of segment performance o a cross reference to another subsection of financial analyses (e.g. asset utilisation). The analyses encompass two (2) identifiable share market indicators. The analyses covers only one or no identifiable share market indicator. The analyses are supported with some identification and explanation (reasons) for share market indicators. At least one reference is provided. The subsection provides some evaluation on certain share based indicators but lacks of an overall conclusive remark on the share market performance of the company. The analyses are tightly related to the company however does not consider the perspective of making share investment (forward looking). The analyses include one (1) or two (2) of the following o a reflection on the company's non-financial information that has been discussed in section three o a cross reference to another subsection of financial analyses( i.e. profitability or liquidity) The analyses do not included any identification and explanation (reasons) for the share market indicators. o a critique on another published analysis/commentary regarding the company's asset utilisation (must be supported with reference.) The subsection contains no evaluation or assessment on the share market performance of the company. The analyses neither relate to the company nor concern about the potential investor. The analyses include none of the following o a reflection on the company's non-financial information that has been discussed in section three o potential negative development (must be supported with reference) o a cross reference to another subsection of Education and Applied Research Division o o o Total Department of Business Excellent = 1 mark an analysis of the trend of company's share price potential negative development in share performance (must be supported with reference) a critique on another published analysis/commentary regarding the company's share market performance (must be supported with reference.) Marks 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury o o o Average/Acceptable = 1/2 mark an analysis of the trend of company's share price potential negative development in share performance (must be supported with reference) a critique on another published analysis/commentary regarding the company's share market performance (must be supported with reference.) Marks 4/09/17 Page 9 o o o Marks Poor No mark financial analyses( i.e. profitability or liquidity) an analysis of the trend of company's share price potential negative development in share performance (must be supported with reference) a critique on another published analysis/commentary regarding the company's share market performance (must be supported with reference.) Education and Applied Research Division Department of Business SECTION 4: Recommendation Conclusiveness Synthesising Consistency and reliability Critical thinking TOTAL: (___/4 MARKS) Excellent = 1 mark The subsection draws a conclusion regarding whether the potential investor should buy shares of this company. The conclusion is supported with a list of key evaluations of all five (5) areas of financial analysis section. The conclusion is logic and highly consistent with the key evaluations provided in section three and four. The analyses include three (3) or more of the following o A discussion on making long-term and/ or short term investment; o A outline of potential risks o Forward looking evaluations o A reflection on the limitations of the report findings o A recommendation for further research. Average/Acceptable = 1/2 mark The conclusion is supported with a list of key evaluations of some of the areas of financial analysis section but with omissions. The conclusion is logic and to a certain extent consistent with the key evaluations provided in section three and four, however subject to some apparent debate. The analyses include one (1) or two (2) of the following o A discussion on making long-term and/or short term investment; o A outline of potential risks o Forward looking evaluations o A reflection on the limitations of the report findings o A recommendation for further research. Poor No mark The subsection contains no conclusion whether the potential investor should buy shares of this company. No supported evaluations provided. The conclusion is in conflict and/or is not related to the key evaluations provided in section three and four. The analyses include none of the following o A discussion on making long-term and/or short term investment; o A outline of potential risks o Forward looking evaluations o A reflection on the limitations of the report findings o A recommendation for further research. Total Marks Marks SECTION 5: References TOTAL: (__/2 MARKS) In-text citation Excellent = 2 mark In-text citations are provided. Average/Acceptable = 1 mark In-text citations are provided. Poor No mark No in-text citation is provided. Reference List A reference list is provided. A reference list is provided. No reference list is provided. In-text citation - accuracy No mistake or omission of in-text citation. Reference list - accuracy No mistake or omission of in the reference list. No more than three (3) mistakes or omission of intext citation. No more than three (3) mistakes or omissions in the reference list. Marks Marks Four (4) or more mistakes or omissions of in-text citation. Four (4) or more mistakes or omissions in the reference list. The student(s) will be required to resubmit the assignment if no reference is provided. Total 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury 4/09/17 Page 10 Education and Applied Research Division Department of Business SECTION 6: PRESENTATION TOTAL: (____/3 MARKS) = 1 mark, 3 marks in total. The report Use formal style as well as neat and professional layout (key consideration: the inclusion of numbered headings and subheadings, the inclusion of page number). Use consistent and appropriate formatting according to the instruction of the report. Use formal language without misspelling and grammar mistakes that will impair the professionalism of the report. Other comments (optional): 906f9ee032824a2bf0c5d7c65b2b292f82a6486e.docx Ara Institute of Canterbury 4/09/17 Page 11 Te Hoe Pakihi Department of Business Bachelor of Applied Management New Zealand Diploma in Business Assessment Two: Assignment One, Part A Intermediate Financial Accounting AMFA601 Financial Accounting NZDB601 / DAB601 Semester Two 2017 Due date: Monday 11 September 2017 Time: 4.00 pm (strictly no extension) Instructions: See page 2. Students can choose to do this assignment in pairs or individually. TOPIC MARKS Financial Analysis - calculations 80 TOTAL MARKS: 80 Student Name/ID ................................................................................................... Student Name/ID ................................................................................................... Ara Institute of Canterbury and its division members reserve the right to use electronic means to detect and help prevent plagiarism. Students agree that when submitting this assignment, it may be subject to submission for textual similarity review to Turnitin.com. If an assessment is handed in late without an extension, a penalty of 10% per day will apply, up to a maximum of 50%. If an assessment is received more than five days after the due date, it will not be marked. If a student has a justifiable reason for non-submission of the assessment, they have seven days following the due date to submit an aegrotat application. Should a student wish to appeal any decisions they may do so in writing to the Head of Department within ten days of receiving the decision. This assessment is worth 5% of the total marks for this course. This paper has 4 (4) pages including the cover sheet. Education and Applied Research Division Department of Business Instructions: This assignment may be done in groups of two (2) or individually. Please ensure you clearly name all members of your group when submitting. Your calculations should be presented in tables. This assignment should be typed. Round all calculations to two (2) decimal spaces. Only the printed copy handed in will be marked but you must also submit an electronic copy via the Moodle drop box. Only one member of the group needs to submit the electronic copy. This assessment covers Learning Outcome Four. Financial ratios to be supplied are listed on the last two pages of this document. These ratios are covered in chapter 10 of the text book; Smart, M., Awan, N., & Baxter, R. (2011). Financial Accounting: A New Zealand Perspective (3rd ed.). Auckland: Pearsons. Assignment Requirements: Obtain the The a2 Milk Company Limited annual reports for the 2014 and 2016 financial years. Please use the 2015 comparative figures in the 2016 annual report for 2015 figures. Available at https://thea2milkcompany.com/investor-centre/results/ Complete a table using common size analysis for the Income Statement and Balance Sheet for the 2014, 2015 and 2016 financial years using total revenue for the common base for the Income Statement and total assets for the Balance Sheet. Complete a table to calculate the percentage change analysis for the 2014, 2015 and 2016 financial years. This can be presented on the same table as the common size analysis. Complete a table to calculate the financial ratios or financial information described on pages 3 & 4 for the 2014, 2015 and 2016 financial years. abd37d367b1e52d284fec4be08039c9b9fa14418.docx 9/4/17 Ara Institute of Canterbury Page 2 Education and Applied Research Division Department of Business Selected Financial Ratios (formulae) Profitability 1 Gross profit margin = Gross margin Sales 2 Mark-up = Gross margin Cost of sales 3 Net Operating Margin= Earnings before interest tax(EBIT ) Sales (Interest expense for 2014 is $40,000, 2015 and 2016 amounts are disclosed in the 2016 annual report) 4 Gross profit Revenue Profit margin on sales = Net profit before taxes Sales Net profit for the period Revenue 5 Return on total assets = Net profit before taxes Total Assets Net profit for the period Total assets 6 Return on equity = Net profit after taxes Shareholder funds Net profit for the period Total Equity Liquidity 7 Working capital = current assets - current liabilities 8 Current ratio = Current assets Current liabilities 9 Liquidity ratio (quick ratio) = Liquid assets C urrent liabilities Cash , cash equivalentshort term deposits current liabilities Leverage 10 Debt to total assets ratio = Total liabilities Total assets abd37d367b1e52d284fec4be08039c9b9fa14418.docx 9/4/17 Ara Institute of Canterbury Page 3 Education and Applied Research Division 11 Department of Business Debt to equity ratio = Total liabilities Total equity 12 Cash flow to debt ratio = Cash flow operations Total liabilities Net cash flow ( statement of cash flows ) Total liabilities Assets Utilisation 13 Days' sales in inventory = Ending inventories Cost of sales/365 14 Average collection period (days) as disclosed in annual reports 15 Property, plant & equipment (PPE) turnover = Sales Property , plant equipment 16 Total asset turnover = Sales Total assets Share market related ratio 17 Basic earnings per share (EPS) as disclosed in annual reports 18 Share price at balance date; 2016 $1.83, 2015 $0.71, 2014 $0.69 19 Price/earnings (P/E) Ratio = share price(last trading day closing price) Earnings per Share 20 No dividends have been paid by The a2 Milk Company Limited in the 2014, 2015 and 2016 years. 21 Weighted average number of ordinary shares for EPS calculation. Disclosed in the annual reports 23 Net tangible asset backing per share (NTA) = Shareholder fundsIntangible assets Number of ordinary shares abd37d367b1e52d284fec4be08039c9b9fa14418.docx 9/4/17 Ara Institute of Canterbury Page 4 Te Hoe Pakihi Department of Business Bachelor of Applied Management New Zealand Diploma in Business Assessment Two: Assignment One, Part B Intermediate Financial Accounting AMFA601 Financial Accounting NZDB601 / DAB601 Semester Two 2017 Due date: Tuesday 26 September 2017 Time: 4.00 pm Instructions: See page two. Students can choose to do this assignment in pairs or individually. TOPIC MARKS Financial Analysis and Interpretation 50 TOTAL MARKS 50 Student Name/ID ................................................................................................... Student Name/ID ................................................................................................... Ara Institute of Canterbury and its division members reserve the right to use electronic means to detect and help prevent plagiarism. Students agree that when submitting this assignment, it may be subject to submission for textual similarity review to Turnitin.com. If an assessment is handed in late without an extension, a penalty of 10% per day will apply, up to a maximum of 50%. If an assessment is received more than five days after the due date, it will not be marked. If a student has a justifiable reason for non-submission of the assessment, they have seven days following the due date to submit an aegrotat application. Should a student wish to appeal any decisions they may do so in writing to the Head of Department within ten days of receiving the decision. This assessment is worth 15% of the total marks for this course. This paper has 5 (5) pages including the cover sheet. Education and Applied Research Division Department of Business INSTRUCTIONS: This assignment may be done in groups of two (2) or individually. Please ensure you clearly name all members of your group when submitting. If you are working in a group of two, only one assignment per group needs to be submitted. Your report should be word processed. Use Arial, 11pt font 1.5 line spacing. Print on one side only and staple in the top left corner. This is a formal report to an external user, you must ensure that your report meets the external user's needs and is of a high quality in terms of spelling, grammar, sentence construction and paragraphs. Ensure the language used is appropriate for a typical investor and does not contain too much technical accounting jargon. This assessment covers Learning Outcome Four. ASSIGNMENT REQUIREMENTS: You are an investment advisor who has been asked to consider The a2 Milk Company Limited as an investment option. Using a range of techniques you are required to research information related to this company and write a report that analyses and interprets both the financial and non-financial information of this entity. You are to present this information in a formal report and formulate a conclusion as to whether this is a sound investment opportunity. In this assignment you are required to interpret and analyse a broad range of financial data regarding the financial performance and risks of The a2 Milk Company Limited for the 2014, 2015 and 2016 financial years. You will need to use the financial analysis-ratios completed in Part A of this assignment. Please ensure you use the financial analysis-ratios provided in the model answers. You are also required to undertake research on other financial or non-financial aspects relevant to this company as supporting evidence to present a report recommending whether the investor should invest in The a2 Milk Company Limited. Your recommendation must fully explain why you have made this decision. Your report will be structured as follows; 1 Title page 2 Executive summary The executive summary is a stand-alone section of your report1. It summarises your report in such a way that the potential investor can rapidly become acquainted with the main contents of your report without having to read it all. It should contain a brief statement of the purpose of the report, background information, concise analysis and main conclusions. (3 marks) 1 The heading 'Executive Summary' should not be numbered 5afa06ea05b9277aaf3a1e1f582ee92717138a05.docx 4/09/17 Ara Institute of Canterbury Page 2 Education and Applied Research Division 3 Department of Business Introduction The introduction section should start with a description of the company including its history and main economic activities. You are also required to explain the objectives, scope as well as any limitation(s) of the report. You should outline the structure of the report subsequent to the 'Introduction' section. This page should be numbered as page 1. (3 marks) 4 Findings and Discussions 4.1 External environment and corporate strategy This section documents the main findings and discussions incorporating interpretations of The a2 Milk Company Limited's non-financial information under the following headings: Macro-environment; The political, macro-economic, social, and technological characteristics of New Zealand by using 'PEST' analysis framework. You should also discuss factors which influence the international markets in which The a2 Milk Company Limited operates. Competitive dynamics in the industry; and The dynamic forces driving competition in the industry by using the Porter's Five Forces analysis. The competitive strategy. The competitive advantages and strategies that The a2 Milk Company Limited pursues. Your discussion should include but not be limited to assessing and commenting on the above factors and their implications on the performance and the risks of The a2 Milk Company Limited. (15 marks) 4.2 Financial Analysis This section documents your findings and discussions incorporating interpretations of The a2 Milk Company Limited's financial information under the following headings: Profitability Liquidity Leverage Asset utilisation Share market related performance 5afa06ea05b9277aaf3a1e1f582ee92717138a05.docx 4/09/17 Ara Institute of Canterbury Page 3 Education and Applied Research Division Department of Business In making your interpretations you should consider using and interpreting: Financial data, analysis and ratios from part A of this assessment. This includes data on share price, dividends etc. The company's cash flow and segment information. Financial and/or non-financial information contained in the company's annual reports. Other relevant financial and/or non-financial information relating to the company and its economic activities. You may want to tell the story behind the financial data including: o Strategic decisions the company has been involved in during the period that produced the financial results. o Strategic decisions the company has been involved in during the period that will have an impact on the company's future financial position and performance. o Causes for particular financial results. o Evidence that the company is/is not profitable, well managed, and financially stable / will provide a good return for shareholders. o Evidence that the company is/is not committed to a sustainable growth. You are encouraged to reflect your analyses on the information you provided in the previous section(s) to support your discussion in financial analysis. However, you are not expected to make comparison between The a2 Milk Company Limited and other companies. (20 marks) 5 Recommendation Make a statement about the recommended investment decision. Include a summary of significant findings (evidence) you have covered in the previous sections to support this recommendation. (4 marks) 5afa06ea05b9277aaf3a1e1f582ee92717138a05.docx 4/09/17 Ara Institute of Canterbury Page 4 Education and Applied Research Division 6 Department of Business References You should: Use correct in-line referencing techniques according to academic standards using the APA method of citation. Identify a list of references you have directly referred to as either quotes or paraphrased in completing your report. Follow the document of APA Referencing a Guide for Ara Students. This document can be downloaded from Ara Library Website and the course Moodle site. This guide is based on the 6th edition of the Publication Manual of the American Psychological Association (2010). You should include a list of appendices if necessary. (2 marks) 7 Presentation Your report aims to inform, as clearly and succinctly as possible, therefore you are required to: Use formal style as well as neat and professional layout. Use numbered headings and sub-headings. Carry out careful proof-reading. Number each page. Use consistent and appropriate formatting. Use formal language. You should avoid: The inclusion of unreliable, inaccurate data or conflicting data. The inclusion of outdated or irrelevant data. Inconsistency in formatting, style and conclusions between different group members. Unsupported arguments, conclusions and recommendations. Excessive emphasis on appearance (for instance including excessive amount of graphs and charts) but lacking of insight in contents and analyses. A lengthy report which is longer than 12 pages. (3 marks) 5afa06ea05b9277aaf3a1e1f582ee92717138a05.docx 4/09/17 Ara Institute of Canterbury Page 5