Financial Management Group Assignment ACT3211

Group Assignment 20% (10% for Part A and 10% for Part B)

You are required to form a group with 3-4 students for this assignment and pick one listed company as
your targeted company for the explanation for financial statement and financial statement analysis in
Part A and Part B (for year 2016 and 2015). Each part is carrying 10% of the total mark.

Part A (10%)

1. You need to descript the four key financial statements in an annual report – balance sheet, income
statement, statement of cash flows, and statement of stockholders’ equity. Please make a conclusion on
the condition of the company in the analytical years.

2. Your analysis in Part A should include:

i. Does the company pay its supplier on time?

ii. Does the company enhance the shareholder wealth?
iii. What is the free cash flow of this company show?
iv. What is/are your suggestion/s on the credit terms offered by this company?
v. What is/are your comment/s and suggestion/s on the profit management?
vi. In your opinion, which stage is this company now? (Expansion, stable or contraction)
vii. Does the company need external capital?
viii. What happens if the company changes their depreciation method?
ix. How can the company reduce their tax payment? (Please suggest at least 2 methods.)

Part B (10%)

1. You need to compute for all financial ratio as per covered in the textbook for year 2015 and 2016.
Analysis and comment on the condition of the company based on:-

 Liquidity
 Asset management
 Debt management
 Profitability
 Market value

2. Answer the question as below:

i. What is the effect of debt on ROA and ROE on the company?

ii. What is/are the ratio/s that needs to be improved?
iii. How can the company show up additional cash? (Please suggestion at least 2 methods.)
iv. In your opinion, what is/are the potential use/s of freed up cash for this company?

Deadline: Friday in Week 12 (submit in hardcopy)

A day delay in submission will deduct 2 marks.