Microsoft Word - ACT204_assign_116.docx

Q8.

From the following link download the annual report for 2015

http://www.api.net.au/investor/annual-reports/

Look at the Notes to the Financial Statements for Intangible Assets.

Required

1. A Using AASB 138 and AASB3 explain how the brand names were recognised and measured as assets.
2. B What can you deduce from the fact that the values are the same in both years? (20 marks)

CDU Business School Semester 1, 2016 Page 6 of 7 Faculty of Law, Education, Business and Arts

Q9. From the following link download Woolworths Limiteds annual report for 2015

http://www.woolworthslimited.com.au/icms_docs/182381_Annual_Report_2015.pdf

Go to page 58 where you will find the financial statements

In the 2014 annual report the financial statements can be found on page 96

http://www.woolworthslimited.com.au/annualreport/2014/ebook/#96

You will need the 2014 results when calculating average inventory and average receivables for the 2014 efficiency ratios.

You can access the closing market price of Woolworths shares at

https://au.finance.yahoo.com/q/hp?s=WOW.AX

When downloading the annual reports its good not to print the whole report as they can be over 100 pages long.

Required

1. A Calculate the following ratios for 2015 and 2014: Current and Acid Test ratios Inventory turnover and days in inventory Gross profit percentage, accounts receivable turnover and days sales in receivables Debt ratio and debt to equity ratio Rate of return on net sales ratio and rate of return on total assets ratio Asset turnover ratio and the rate of return on ordinary shareholders equity Dividend yield and dividend payout.
2. B Using the ratios calculated in Part A and information gathered from elsewhere in the Annual Reports write a report to a potential investor with your recommendations as to whether Woolworths Limited would make a good investment.
3. C As a rule of thumb the Current Ratio for businesses should be 2:1 and the Acid Test between1.5 to 1:1 How would you explain these ratios for Woolworths Limited when compared to this rule? Your report should be written as a business report with an executive summary, an introduction, the main findings, a conclusion and references. Marks will be awarded to reflect presentation, business English, content and referencing.