help pls retake hour

Wesfarmers will invest aggressively with a roll-out of more than 11 Coles stores, up to 25 Bunnings outlets and as many as ten Officeworks stores this financial year. Wesfarmers chief Richard Goyder has unveiled a $1 billion war chest to bankroll the expansion of Coles, Bunnings and Officeworks as it ups the ante in its cut-throat battle with Woolworths. And the retail and mining conglomerate will spend $2 billion expanding key coal operations as it navigates the perils of the polarised economy after posting a 23 per cent increase in full-year profit yesterday. Mr Goyder said Coles' aggressive discounting campaign had fuelled the result, with profit ringing in at $1.92 billion, up from $1.56 billion last year. Wesfarmers would invest aggressively to extend its footprint, he said, with a roll-out of more than 11 Coles stores, up to 25 Bunnings outlets and as many as 10 Officeworks stores this financial year. The investments would help drive 'greater market presence and strengthen the group's financial performance, Mr Goyder said. But he said much hinged on the national and global economies: 'While the outlook for future performance of the group's retail divisions remains subject to any further declines in consumer confidence, the retail brands are well placed given their staples and value-based positioning.' Revenue rose 6 per cent to $54.875 billion for the group which also runs insurance and chemical businesses. Wesfarmers took a hit on its insurance division in the wake of the natural disasters that beset Australia over the summer, with earnings tumbling $102 million to $20 million. Mr Goyder said insurance earnings were likely to improve but higher reinsurance costs will add pressure to underwriting margins. Earnings in the Coles division climbed 21.2 per cent to $1.17 billion, while Bunnings' earnings increased 10.2 per cent to $802 million. The supermarkets division has been engaged in a fierce discounting campaign to win back market share from key rival Woolworths. Source: Whalley, J 2011, 'Huge war chest for Wesfarmers, Herald Sun, 19 August. Required: Examine the following information retrieved from the Wesfarmers Limited and Woolworths financial reports. 1 + + ... Wesfarmers Ltd 2011 2010 $.000 $ 000 2917 3 327 Woolworths Ltd 2011 2010 $'000 $ 000 2991 2 752 Cash flow from operating activities Cash flow from investing activities Outflow Payment for property, plant and equipment Other Inflow (2 062) (1 656) (126) (75) 312 35 (2 138) (444) 405 (1 818) (206) 72 (1 876) (1 696) (2 177) (1 952) Cash flow from financing activities Outflow Inflow (5 080) (3 502) 3 296 1 387 (1 784) (2 115) 1640 2 124 897 1640 (13 632) 13 631 (1) 713 1 520 (13 824) 12 991 (833) 746 713 Beginning cash balance Ending cash balance Other information Dividends paid Net sales Current assets Non-current assets Current liabilities Non-current liabilities (1 557) (1 325) 52 891 49 865 10 218 9 674 30 596 29 562 8 722 7852 6 763 6 690 (1 260) 54 143 6 593 14 502 8 288 4 960 (1 165) 51 694 5 199 13 288 7 153 3 516 Based on the analysis answer the following questions: a. Which business would you expect to be a better short-term credit risk and why? Explain. (5 point) b. Do you think both companies have adequate cash resources? Explain and justify! (5 point) C. Assess both companies' ability to survive in the longer term! (5 point) d. Which company is better at generating cash from their sales revenue and why? Explain! (5 point)