Accounting for Business Case Study

ACCOUNTING FOR
BUSINESS CASE STUDY

Table of Contents
1. Financial statements.....................................................................................................................3
a) Main financial statements........................................................................................................3
b) Comparison of financial statements........................................................................................3
c) Community activities...............................................................................................................3
2. Sustainability...............................................................................................................................4
a) Main sustainability strategies..................................................................................................4
b) Reason of counted as top company in the context of sustainability........................................5
3. Internal control.............................................................................................................................5
a) Internal control failure.............................................................................................................5
b) Rectification of problem..........................................................................................................6
REFERENCES................................................................................................................................1

1. Financial statements
a) Main financial statements
It refers to those statements from which the financial performance of the company is being
analysed and presented (Lessambo, 2018). With regard to Woolworths the main financial
statement includes Income statements, Balance sheet, Statement of changes in equity, Cash flow
statements and statement of comprehensive income is used to report its shareholders, Australian
Taxation Officers and ASIC.
b) Comparison of financial statements
Comparison of financial statement enable the company and its stakeholder to analyse the
financial performance along with the company’s financial position. Through this statements
company can evaluate its business operation, likewise investors can take their investment
decisions.
The main ratio of comparison are:
Gross profit ratio:
It refers to that ratio which is being used to evaluate the business performance as well as its
efficiency by dividing the gross profit with the total sales (Gilchrist, 2018). This ratio enable the
investor to analyse that how the company is raising its profit by minimising its cost along with
raising its sales.
It is calculated as: Gross profit/Net sales*100
For 2019:
=17442/59984*100
=29%
For 2020:
=18570/63675*100
= 29.16%
Net profit ratio:
This ratio shows the percentage of profit that is being generated from the net revenue. Through
this ratio company can determine that how much net profit they have earned over the percentage
of sales.
It is calculated as: