Financial Scenario Report
The Subject Learning Outcomes demonstrated by successful completion of the task below include:
a) Explain the role and importance of financial information in business decision making.
b) Analyse and apply financial information to facilitate business decision making.
d) Recommend financial decisions to relevant stakeholders.
Assessment Task
Calculate financial information for a given business case study. Then interpret and analyse these results to demonstrate an understanding of how business decisions are made.
Context
Using Financial Statements of companies to perform calculations, interpreting results and analysing them will help you develop understanding about how business decisions are made in the industry considering the available financial information. By completing this assessment, you will demonstrate the importance of financial information in business
decision making, including the application of financial statements analysis to business decisions.
Instructions
Follow the instructions below to complete this assessment.
1. Download the provided workbook ‘BIZ201_Assessment_2_Student Workbook’ from the Assessment 2 area on Blackboard.
2. Download the ‘Financial Statements Document’ from the Assessment 2 area on Blackboard. You will use the information contained in this document for the completion of tasks in this brief.
3. Complete the following calculations and tasks for the given business:
a. Conduct a vertical analysis of ‘Statement of Financial Position’ for the year ended 2021 in the provided Excel Workbook within the ‘Balance Sheet’ worksheet. Round your answers to two decimal places.
b. Conduct a ratio analysis of the years ended 2021 and 2020. Calculate the listed ratios for Profitability, Efficiency, Liquidity and Solvency in the provided Excel Workbook within the ‘Income Statement’ worksheet. Round your answers to two decimal places.
c. Consolidate your findings and their impact on the decision making of the business in the report by using the results of the ‘Ratio Analysis’ in the Excel workbook to comment on the company’s Profitability, Efficiency, Liquidity
and Solvency. Based on the results of your analysis, provide recommendations on areas that need improvement or further investigation.
d. With reference to the Statement of Cash Flows of the company in the provided Excel Workbook, give reasons for the differences in Net (Decrease)/ Increase in Cash and Cash Equivalents between 2021 and 2020 in the report.
*IMPORTANT: When completing calculations in the workbook, you are required to show all workings through appropriate Excel formulas. Providing number results without evidence of Excel formulas will not be accepted.
