• Task

You are a member of a large accounting firm which provides various business consultancy services including financial statement analysis. One of your clients is considering investing in JB Hi-Fi and approached you for advice.

Required:

Prepare a report commenting on the financial health of JB Hi-Fi in the past two (2) years.

Detailed guidelines for completing this task:

1. Analysing the financial statements

The purpose of your report is to discuss and summarize your findings on the financial health of JB Hi-Fi by analyzing and interpreting the financial statements of the company. After getting the two most recent annual reports of JB Hi-Fi, calculate at least four (4) major financial ratios from each of the categories below:

(a) Profitability ratios;

(b) Liquidity ratios;

(c) Financial stability ratios; and

(d) Ratios used for analysing cash flow.

The choice of ratios chosen should be made so that you are able to arrive at a conclusion to advise your client on the financial health of JB Hi-Fi in the past two (2) years. The ratios chosen, together with their formulae and calculation, are to be included as part of your report. These can be inserted in any sections of your report, depending on your creativity.

Note that you should make any reasonable assumptions in computing your ratios. You should focus on interpreting the ratios computed, rather than the accuracy of the ratios computed.

  • 2. Contents of report

Your report may include the following contents together with the advice on number of pages:

Items / Expected no. of pages: / Max. No. of pages:
Introduction and conclusion / 0.5 / 1
Financial ratios analysed (see advice per Note 1 above) / 2 / 3
Discussion on financial health (i.e. interpretation of financial ratios computed above) / 2 / 3
Limitation of ratio analysis / 0.5 / 1
Any other information (e.g. non-financial information, industry averagesor other analysis that may assist in reaching conclusion) / 0.5 / 2
Cover page, contents page, executive summary, references, acknowledgements and appendix (if any, for all these items) / 3 / 5

Notes:

(a) The expected number of pages above is just a recommendation and not a minimum requirement;

(b) All in all, you report should not be more than 15 pages. There is no minimum number of pages required although it is expected that your report should be between 8-12 pages long (everything in);

(c) You should not attach the annual reports as part of your reports;

(d) The content items listed above is merely a recommendation and not minimum items required;

(e) While your work submitted should follow a format belongs to that of a report, what is to be included as part of your report is entirely your decision. In preparing your report, you should bear in mind the purpose of your report and exercise reasonable judgement in relation to the structure and contents of the report. You should not be deterred from any creative ideas in designing your report

  • 3. Format and presentation

The following points should be observed in drafting your report:

  • Use a font size of at least 11, with single or 1.5 line-spacing;
  • Each page should be numbered in one continuous sequence;
  • Your last name and student ID should be included at the top of each page.

If you need some guidance in how to prepare a report, you may consult Charles Sturt University’sALLaN Adviser Support.

Rationale

This assessment task covers topic 1. It has been designed to ensure that you are engaging with the subject content on a regular basis. More specifically it seeks to assess your ability to:

  • be able to critically assess and report upon the information contained within published financial statements.

Marking criteria

The marking rubric for this assessment task is provided below.

Criteria / Exceeds expectation (HD/D) / Meets expectation (CR/PS) / Fails to meet expectation (FL)
Technical:
Computation of ratios [20%] / [16-20%]
-key ratios are selected accurately in each category of ratios;
-computation of ratios is accurate with very minor flaws. / [10-15%]
-key ratios are selected accurately in each category of ratios;
-computation of most of the ratios is accurate with some errors. / [0-9%]
-most of the key ratios are selected accurately in each category of ratios;
-computation of some of the ratios is accurate but fundamental errors occurred with some other ratios.
Technical:
Discussion on financial health on each of the four categories required [30%] / [23-30%]
-consistently draw accurate conclusions on how each category impacted the financial health of the business;
-consistently used ratio analysis and any other relevant information as support for conclusions reached in each of the categories;
-draw a completely accurate conclusion regarding the overall financial health of the business based on the results of the analysis;
-limitation or ratio analysis is discussed accurately;
-additional information supporting discussion are included appropriately;
-overall, discussion shows mastery of topic. / [15-22%]
-draw accurate conclusions on how each category impacted the financial health of
the business more than half of the time;
-used ratio analysis and any other relevant information as support for conclusions reached in each of the categories more than half of the time;
-draw a mostly accurate conclusion regarding the overall financial health of the business based on the results of the analysis;
-limitation or ratio analysis is discussed accurately;
-additional information supporting discussion are considered occasionally;
-discussion shows adequate understanding of topic. / [0-14%]
-draw accurate conclusions on how each category impacted the financial health of
the business less than half of the time;
-used ratio analysis as support for conclusions reached in each of the categories less than half of the time;
-draw a weak, somewhat accurate conclusion regarding the overall financial health of the business based on the results of the analysis;
-limitation or ratio analysis is discussed accurately;
-additional information supporting discussion are not considered at all;
-discussion shows little or limited understanding of topic.
Purpose and objective [10%] / [8-10%]
The purpose and objective of the report is made clear, and the report addresses the objective(s) in a focused and logical manner. / [5-7%]
The purpose and objective of the report is made clear, and the report addresses the objective(s). / [0-4%]
The report does not clearly address the objective(s).
Conclusions/Recommendations [5%] / [4-5%]
-conclusions are relevant and accurately portray the key results of the document;
-recommendations are specific action oriented suggestions, oriented to the
problem provided, and organised in a
relevant manner;
-conclusions/recommendations logically flow from the document in a manner which is evident to the reader. / [2-3%]
-conclusions are relevant and portray the results of the document;
-recommendations are specific action-oriented suggestions, oriented to the problem provided;
-conclusions/recommendations logically flow from the document but the logic may not always be clear. / [0-1%]
-conclusions/recommendations do not clearly flow from the document, and/or miss key findings.
Formal structure and presentation:
Cover letter, title page, executive summary, table of contents, etc. Also refers to the “look” of the report – professionally presented [10%] / [8-10%]
-appropriate elements of the business report are present and completed to a high standard;
-the document is presented in a professional-looking document, using informative headings and figures/tables where appropriate;
-design of report helps readers understand and remember information. / [5-7%]
- appropriate elements of the business report are present and completed to a satisfactory standard;
-attention to the presentation is given, but may not be well-executed;
-design of report helps readers find the information they need. / [0-4%]
-appropriate elements of the business report are not provided and/or presented with errors;
-overall presentation of the document is not to a professional standard;
-design of report in readable format but sometimes can be imbalance or cluttered.
Clarity and conciseness:
Answers the question, succinct, appropriate complexity [10%] / [8-10%]
-argument effectively and efficiently conveyed;
-highly focused on the question;
-easily understood. / [5-7%]
-argument reasonably clear;
-occasionally misses the point but answers the question;
-not overelaborate or over-complicated. / [0-4%]
-main point and/or argument are confused or unclear;
-irrelevant information;
-no transition between ideas and unclear conclusion.
Technical writing skills:
Grammar, spelling, punctuation, etc [10%] / [8-10%]
Very few spelling errors, correct punctuation, grammatically correct, complete sentences. / [5-7%]
Occasional lapses in spelling, punctuation, grammar, but not enough to seriously distract the reader. / [0-4%]
Numerous spelling errors, non-existent or incorrect punctuation, and/or severe errors in grammar that interfere with understanding.
Referencing [5%] / [4-5%]
Sources acknowledged with full reference details in accordance with APA referencing system. / [2-3%]
Sources acknowledged with bare reference details in accordance with APA referencing system. / [0-1%]
Sources not acknowledged butmajority ofreferences presented is not in accordance with APA referencing system.

Requirements

You must submit your assignment via Turnitin in a word file. If you have done the question using an excel file, copy the excel part in word file before submitting