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Accounting Concepts and Practices

   

Added on  2020-07-23

10 Pages2117 Words379 Views
Accounting Conceptsand Practices
Accounting Concepts and Practices_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1Financial performance analysis...................................................................................................1QUESTION 2...................................................................................................................................5Sustainability report....................................................................................................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
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INTRODUCTIONIn business, there are various crucial aspects which are essential to be taken into accountso that proper functioning can be determined. Accounting practices are one of the important partof every business organisation such as Wesfarmers. It can help in analysing the financialstatement of company during a year (Lunenburg and Ornstein, 2011). In this report, various toolsand techniques are used to examine the performance of company. The other part of this reportprovides information about sustainability of the firm. QUESTION 1Financial performance analysisWesfarmers Ltd is well known Australian conglomerate public limited company. It issituated in Perth and Western Australia. The company is generating total revenue of A$65.9billion with total number of 220000 employees. Wesfarmers recorded a substantial enhance innet profit for the year 2017 as compare to that previous year 2016. Underlying net profit after taxis also at higher side with total of 22.1% to $2.873 million. Earnings per share (EPS) is increase to 21.6% to a highest record of $2.55. Return onequity is also jumped to 9.6 per cent to 12.4%. The main focus of company is to provide superiorreturn to shareholders for the long period of time. At this short term profits can be scarifies inorder to support long term business growth (Flamholtz, 2012). It is important for the company'sto determine their financial position in proper manner. By which, decision-making can be moreeasy for them to plan their future. The best way to identified various outcomes then, managerneed to use financial statements of the company. Such as income statements, balance sheet andcash flow statements.Income statement of Wesfarmers Ltd Particular20162017Revenue6551268015Cost of Revenue4552546359Gross Operating Profit1998721656Operating expensesResearch and development--Sales, general and administrative1052011068Staff cost--Depreciation and amortization11151118Other Operating Expenses771057851
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