Written analytical Report

Section 1: Financial Statement Analysis and interpretations of selected ASX listed companies (70%
weight for this section)

Assessment Description and Instructions:

The purpose of this assessment is to provide students with an understanding of financial statement
analysis as well as using Microsoft Excel to aid in calculating financial statement ratios and aiding
financial analysis. In business, accountants, managers, and financial analysts are required to
understand how businesses or a particular business operates. Financial statement analysis by using
common size calculations and percentages aids in this understanding and it also enables comparison
to other businesses regardless of the absolute dollar size of these businesses.

Businesses today require that their employees can work in teams and collaborate to produce more
innovative solutions, compared to what an individual can produce. Each student will be required to
provide an individual report for the allocated ASX listed company analysis and calculations. This
assignment involves analysing the financial statements and other information relating to selected
listed Australian public companies. The selected ASX listed companies will be allocated to each
individual student and uploaded on Moodle.

Each individual student is responsible for the calculations and analysis of the allocated company. The
assignment is divided into two parts. Each student is responsible for collecting data from the
selected ASX listed company data, analysis, drafting an answer and preparing presentation materials.

Required:

i). A brief statement of the selected company’s operations and the statement of the CEO about
the selected company’s annual performance and strategy. You are required to write in your
own interpretation not just cut and paste of the CEO’s statement(s) on company’s annual
performance and strategies.

ii). Calculate the following ratios for 2022 and 2023 – (be sure you show the workings for
supporting collected data)

Analysis category No Ratios Company Company

Code Code
2022 2023
Liquidity Ratio 1. Current Ratio
2. Quick Ratio
Efficiency 3. Return on Total Assets
4. Inventory Turnover Ratio
5. Inventory Turnover (number of
days)
Profitability 6 Gross Profit Ratio
7 Net Profit Ratio

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 Solvency 8. Debt to Equity
9. Debt ratio
Market Performance 10. Market Capitalisation ($)
11. Return on Shareholders’ Equity
12. Earnings per share (EPS)

iii). Using the ratios calculated in (ii) above of this case study, interpret the generic meaning of
the ratios of liquidity, efficiency, profitability, solvency, and market performance of the
company.

iv) Compare the ratios of liquidity, efficiency, profitability, solvency, and market performance of
the company with its industry average.

Section 2: Master Budget (extract)

This assessment requires you to prepare and demonstrate a unique hypothetical master
budget. For your ready reference and convenience, you have been given a sample master
budget. You need to mimic the contents of the master budget to make it as unique as
possible. The sample master budget is as follows:
AUSPCB LTD makes and sells upmarket carry bags for personal PC. Jon, controller, is
responsible for preparing AUSPCB LTD’s master budget and has assembled the following
data for 2025.

The direct labour rate includes wages, all employee-related benefits and the employer’s
share of payroll tax. Labour-saving machinery will be fully operational by January 2025. Also,
as of 1 January 2025, the entity’s enterprise agreement calls for an increase in direct labour
wages that is included in the direct labour rate.

AUSPCB LTD expects to have 40 000 bags in inventory at 31 December 2024, and has a
policy of carrying 50 per cent of the following month’s projected sales in inventory.

2025
January February March April
Estimated Sales 47,500 58,500 40,000 35,000
Sales price per unit $175 $175 $175 $175
Direct labour hours per unit 6 6 6 6
Direct labour hourly rate $22 $22 $22 $22
Direct materials cost per unit $17 $17 $17 $17
Indirect Materials costs per unit in $ $2 $2 $2 $2
Indirect Labour costs per unit in $ $3 $3 $3 $3

Required:
Prepare the following budgets for AUSPCB LTD for the three specified months (January,
February and March) of 2025. Be sure to show supporting calculations:
a) production budget in units

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 b) direct materials budget in $.
c) direct labour budget in $
d) overhead expenses budget in $
e) sales budget in $.
f) costs of goods sold budget in $
g) budgeted contribution in $

[You are required to use Excel Spreadsheet to complete this budget. You must use formulae in
excel]

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