Question

write your answers in report format. Stage 1. Preparation and Analysis of Financial statements (Using excel). In your stage one you are required to prepare and analyse the financial statements of Australian Fresh Ltd and Woolworths Group Ltd. Australian Fresh Ltd has provided financial information for year ending June 2020. Items Amount ($Million) Cash 2020 Trade receivables 685 Assets held for sale 795 Land 17000 Investment in shares 7950 Delivery trucks 6000 Sales revenue from goods and services 62600 Cost of Sales 34650 Other Revenue 270 Borrowings 8350 Marketing expense 9595 Admin expense 3990 Repair and maintenance expense 2350 Trade and other payables 7750 Loan from ASX Bank payable on demand 2275 Other short-term financial liabilities 3630 60 wages payable Provisions 1080 Secured debts (maturity greater than five years) 5945 Share Capital ?? Reserve 1570 Interest expense 650 Inventory 4380 7810 1235 Insurance expense Income tax expense 680 Staff wages

Answer 1

Australian Fresh Ltd.
Income Statement
For the year ending June 2020
		(in $ Millions)
Particulars	Amount	Amount
Revenue		62,600
Cost of Goods sold		34,650
Gross Profit (GP)		27,950
Operating Incomes (OI)		270
Operating Expenses (OE)		26,120
- Selling & Administration Expenses (9595+3990)	13,585
- Repairs & Maintenance Expenses	2,350
- Employee Benefit Expenses (60+7810)	7,870
- Provisions	1,080
- Insurance Expense	1,235
Net Operating Profit (EBITDA) (GP+OI-OE)		2,100
Less: Amortization and Depreciation Expenses (((6000-1000)/5)*9/12)		750
Earnings before Income and Tax (EBIT)		1,350
Interest Expense		650
Earnings before Tax (EBT)		700
Income Taxes		680
Income after Taxes (EAT)		20
Non Recurring Events (Extraordinary items)		-
Profit or Net Income		20
Earnings per share (EPS) (20/1270shares)	1270 shares	0.0157
Dividend paid for 2020 (EAT*40%) (i.e., 20*40%=8)		8
Dividend per share (DPS) (8/1270shares)		0.0063

Australian Fresh Ltd.
Balance sheet
As on 31st June, 2020
		(in $ Millions)
Particulars	Amount	Amount
Assets
Current Assets
Cash		2,020
Accounts receivable		685
Inventory		4,380
Short Term Investments*		7,950
Current poprtion of non-current assets		795
Total current assets		15,830
Non-current Assets
Lease receivables
Property, plant and equipment	23,000
(Less: Accumulated Depreciation)	750	22,250
Intangible Assets		-
Long Term Investment		-
Total Fixed Assets		22,250
Other Assets
Deferred Income Tax		-
Other		-
Total Other Assets		-
Total Assets		38,080
Liabilities and Owner's Equity
Current Liabilities
Accounts Payables		7,750
Short-Term Loans		10,625
- Borrowings	8,350
- Loan from ASX Bank payable on demand	2,275
Income Tax Payables		680
Accrued Salaries and wages		60
Short Term Provisions		1,080
Other Short term liabilities		3,630
Total current liabilities		23,825
Long-Term Liabilities
Long-Term debt		5,945
- Secured	5,945
- Unsecured	-
Deferred Income Tax		-
Long term lease obligation		-
Total Long Term Liabilities		5,945
Equity Capital
Common Stock***		6,720
Retained Earnings		1,590
- Reserve	1,570
- Profit/Loss	20
Other Comprehensive Income Loss
Total owner's equity		8,310
Non-Controlling Interest		-
Total Liabilities and Owner's Equity		38,080
*Assumed as short term investments
**Assumed as short term borrowings
***Common Stock is the balance figure of the Balance Sheet as share price per share or total amount collected from shareholders is not provided (38080-23825-5945-1590)