Company Operations, Investments And Financing Report

Using the most recent financial statements for either your “employer” organisation, or an Australian Stock Exchange (ASX) Listed company, you will be required to answer a series of questions covering the physical operations of the firm and the information products generated by the accounting system that support management decision activity with respect to:

1. Core Business Operations
2. Investments in working capital and non-current assets
3. Financing using a combination of Debt and Equity.

Financial Statements comprise:

1. Income Statement or Statement of Financial Performance
2. Balance Sheet or Statement of Financial Position
3. Statement of Cash Flows
4. Qualitative or additional quantitative data

Question 1: (15%)

Name of Firm – Business model (250 words)

What are the objectives of the firm and what processes are involved in meeting those objectives?

Describe the physical business operations with consideration to:

Number and Type of Products / Services provided to customers
Market Operations – Geographic operations - local or international
Industry – Primary (E.g., Agriculture, Mining) - Secondary (E.g., Manufacturing) – Tertiary (E.g., Retail, Service)

Question 2: (25%)

Core Business Operations (300 words)

Using information from the income statement

1. Provide details of the Revenue streams and their performance (growth) over the past 3 to 5 years
2. From each dollar of sales revenue, what proportion is:
   • Cost of Sales
   • Sales & Marketing Expense
   • Administration Expense
   • Financing Expense
   • Profit
3. Based on your calculations for (b) analyse the activities undertaken in the delivery of the goods/services to customers – consider continuous improvement.

Question 3: (25%)

Investments in Working Capital and Non-Current Assets (250 words)

Using information from the Balance Sheet:

1. Analyse the movements in Working Capital over the past 3 to 5 years and its impact on the business. (Working Capital = Current Assets – Current Liabilities)
2. Non-Current Assets comprise both Tangible and Intangible assets. Report on the movement on the value of the investment in both Tangible, Intangible and Total Non-Current assets over the past 3 to 5 years.

Question 4: (20%)

Financing using a combination of Debt and Equity (250 words)

Using information from the Balance Sheet:

1. Over the last 3 to 5 years analyse the funding of assets giving details of the proportion of total assets that are funded by:
   • Debt (liabilities)
   • Shareholders’ Equity
   Comment on the strategy used by management to fund growth in asset investment.
2. What are the major factors influencing the financing decision as to whether Debt or Equity financing is to be employed in funding growth.
3. How are shareholders/owners rewarded for their investment in the firm?

Question 5: (15%)

Sustainability, Social and Environmental Considerations (250 words)

1. Describe the main social and environmental factors affecting your organisation.
2. Are the company’s operations (revenue streams) sustainable and what activities are undertaken by the company to maintain market position and revenue streams?
3. To what extent are social and environmental concerns consistent with the objective of shareholder wealth maximization?

Notes:

If you are using your employer organisation to answer the above questions, please be careful not to disclose confidential information. Your analysis should relate to past operations and general statements about future expectations.

If you are using an ASX listed company you can find qualitative and quantitative data using the Morningstar DatAnalysis Premium database which is available via the UTS library using the following link:
https://sso.lib.uts.edu.au/cas/login?service=https://www.lib.uts.edu.au/goto?url=https://datanalysis.morningstar.com.au&_casCheck=true

You will need to sign in using your student ID and password to access the database.

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