Note: I live in Australia, and this question is about commonwealth bank. So please look on the annual report of Commonwealth bank. I might have some helpful documents with me which can help you while doing this assignment. Please feel free to ask anything if I can do for you.

Questions

The following questions provide guidance for accounting analysis of your allocated company (Commonwealth Bank)

1) Select at least two key ratios you would use to evaluate each of the following aspects of your allocated company. Explain why you have selected the above ratios. You should refer to the companys industry and nature of its business operation.

Operating management

Investment management

Financing strategy

Dividend policy

2) Conduct the cash flow analysis of your allocated company, i.e. evaluate the liquidity and the management of following activities

Operating

Investing activities,and

Financing activities

3) Evaluate the companys overall financial performance and financial position for the year ending 30 June 2016.

4) Make appropriate recommendations to the companys executives. You should include the good news highlights, and explain plausible reasons for any bad news.

5) Identify connections between the companys financial policies and its strategy as discussed in Report 1 Industry and Strategy Analysis. For example, does any financial policy support the companys strategy in any way?