311.646: Intermediate Financial Accounting
311.630: Financial Accounting
SEMESTER 1, 2015
DUE: Thursday 7th of May 2015 by noon.
This assignment contributes 25% of the final course grade. It will be marked out of 75, and your mark divided by three to get your mark out of 25.
Your lecturer will discuss with you how you should hand the assignment in This Assignment involves preparation of a formal report on the financial performance and the financial position of THE WAREHOUSE GROUP LIMITED.
1. This assignment is to be presented as a formal report to your client, therefore a suitable standard of structure and presentation is expected.
2. The report must be bound in a manner that allows the marker to easily view and comment on each section. Remember to attach the Cover Sheet supplied when submitting. Please make sure that your name does not appear anywhere on this assignment, including the footer.
3. Calculations of ratios and percentages should be shown clearly in an appendix at the end of the report and referred to in the written report. At the end of the appendix, show full workings of the calculations you have made (these could be handwritten). Some ratios and percentages are stated in the Annual Report and do not need to be re-worked. Take care to avoid crowding your report with too many calculations.
A word of encouragement! There is no ONE correct answer to this assignment. Your effort will be assessed in terms of the quality of your analysis, research and conclusion.
1 A copy of THE WAREHOUSE GROUP LIMITED, the target company’s annual report for the 52 weeks ended 27 July 2014, and other additional information is available on the web page of the company: http://www.twg.co.nz 2 There is considerable other information available that can be collected in relation to this and other companies and you are encouraged to research and use other information in your assignment.
3 All assignment work should be properly referenced, with a separate page labelled as Reference. If you copy extracts from the Annual Report you must acknowledge this in the correct manner. Marks will be deducted for work that is copied without full acknowledgement of the source of the information. You should place quotation marks around the words, phrases or sentences copied, followed by the name of the source as shown in the Guide to APA Referencing and Citations. Please refer to the website http://library.manukau.ac.nz for full information on the Guide to APA Referencing and Citations. Another handy website is http://www.cite.auckland.ac.nz
Investor Advisory Limited (IAL) was registered with the objective of providing its shareholders with the maximum total return, primarily from investment in quoted securities in New Zealand. The Board of Directors is exploring the possibilities of further investing a substantial sum of money in THE WAREHOUSE GROUP LIMITED. The Chief Financial Officer of IAL has approached you with the task of analysing the performance and prospects of the company. They expect you to make a recommendation to buy, hold or sell shares in this company, along with the grounds for your recommendations.
Using the financial report from THE WAREHOUSE GROUP LIMITED for the 52 weeks ended 27 July 2014 and information researched from other sources, you are required to undertake an analysis of the financial performance, the financial position and the cash flow, of the company, considering profitability, liquidity, gearing and market ratios.
You should consider the performance of the company from the perspective of a shareholder. The New Zealand Stock Exchange (http://www.nzx.com) provides share prices for New Zealand listed companies. Whenever you use share price data, you should state the date of the share price you are using as well as the source of the data.
You should use ratios,