Please note: All information required for this assignment is provided in the BU610 Unit 5 Student Workbook [Excel] for this unit.
Read the Forge Group Ltd. [PDF] case study and complete the following requirements.
Refer to FGL’s June 30, 2013, financial reports to complete the following:
- Calculate the accounting equation at the beginning and end of the year and the changes between the beginning and end of the year.
- Identify the changes in the company’s equity during 2013.
- Compare the value of the main asset to total equity.
- Outline the “other” item that makes up comprehensive income.
- Outline the largest expenses on the income statement. Compare them to the cash, debtors, creditors, and inventory balances.
- Identify the total revenue and net profit attributable to members of FGL and earnings before interest and tax (EBIT).
- Outline the three major reconciliation items
In a 2-3 page report, based on the results of your quantitative analysis, discuss the following items:
- Speculate on why there were changes in the company’s equity during 2013.
- Your conclusion from the comparison of the main asset to total equity.
- Why it is important to segregate comprehensive income on the income statement?.
- Comment on the comparison of the largest expenses to the cash, debtors, creditor, and inventory balances.
- Compare the net profit with the net cash flows from operating activities. Which amount is larger? Is this normal?
- Examine the Reconciliation of Cash Flows from Operations with the net profit after tax (NPAT). Discuss how the three major reconciliation items changed. Comment on the changes discovered in the cash flow/profit reconciliation amounts.
- Outline the changes that have occurred in the company’s financing activities. State your opinion on the appropriateness of the quantum of the dividends paid to shareholders.
- State what investment activity FGL undertook in 2013. Was there a net investment or a divestment?
- Quantitative Analysis (Excel Required): You are required to use the provided Excel workbook to complete the quantitative analysis for this assignment.
- Qualitative Analysis (Word Required): Prepare a 2-3 page summary addressing the required qualitative analysis, as noted in the Student Workbook. Your paper is required to be formatted according to APA requirements. Be sure to incorporate key concepts from this unit’s readings and properly cite your references according to APA requirements. Do NOT embed the results of your quantitative analysis in your Word document. You should only reference parts of your quantitative analysis in your written analysis. Your written responses to the qualitative prompts should not be presented in a question and answer format.
Estimated time to complete: 3-5 hours