Financial Record Keeping and Analysis

Table of Contents
ACTIVITY 1.........................................................................................................................................2
Answer 1...........................................................................................................................................2
Answer 2...........................................................................................................................................2
Summarise the data................................................................................................................................7
Answer 3:..........................................................................................................................................7
Answer 4a..........................................................................................................................................7
Answer 4b.........................................................................................................................................7
ACTIVITY 2.........................................................................................................................................8
Answer 6...........................................................................................................................................8
ACTIVITY 3.......................................................................................................................................10
Answer 1.........................................................................................................................................10
Answer 2.........................................................................................................................................10
Answer 3.........................................................................................................................................10
ACTIVITY 4.......................................................................................................................................10
Answer 1.........................................................................................................................................10
Answer 2.........................................................................................................................................11
Answer 1.........................................................................................................................................11
Answer 2.........................................................................................................................................11
Answer 3.........................................................................................................................................11
Answer 2.........................................................................................................................................13
Answer 3.........................................................................................................................................14
ACTIVITY 7.......................................................................................................................................14
ACTIVITY8........................................................................................................................................19
Answer 1.........................................................................................................................................20
Answer 2.........................................................................................................................................20
ACTIVITY 9.......................................................................................................................................21
Answer 1.........................................................................................................................................21
Answer 2.........................................................................................................................................21
Answer 3.........................................................................................................................................21
ACTIVITY 10.....................................................................................................................................21
Answer 1a........................................................................................................................................22
1B Consider this statement..................................................................................................................22

Answer 1B.......................................................................................................................................22
Answer 2.........................................................................................................................................22
ACTIVITY 11.....................................................................................................................................23
Answer 1.........................................................................................................................................23
Answer 2.........................................................................................................................................23
ACTIVITY 12.....................................................................................................................................23
Answer 2.........................................................................................................................................25
References...........................................................................................................................................27

ACTIVITY 1
Question 1 Why is it necessary for organisations to collect, index, file and maintain accurate
financial records? Discuss in 30 to 50 words2
Answer 1
The main reason for the organisations to collect the data, index file and maintain accurate
records is to have a record of how the business is operating, to determine how the business is
growing financially and which processes are assisting them, it will also display where the
money has been invested and which areas are left for potential investments. Basically it
determines the performance of the business as a whole.
Question 2. Collect three pieces of financial data. Each piece of data must come from a
different source. Submit a copy of the data and your comments in response to these activities
to your trainer/ assessor.
Answer 2
The three pieces of the financial data is balance sheet, profit and loss and cash flows.
Balance sheet of Wesfarmers
Balance Sheet
WESFARMERS LTD (WFAFF) Cash Flow Flag BALANCE
SHEET
Fiscal year ends in June. AUD in millions except per
share data.
2017-
06
Assets
Current assets
Cash
Cash and cash equivalents 1013
Short-term investments
Total cash 1013
Receivables 1633
Inventories 6530

Prepaid expenses
Other current assets 491
Total current assets 9667
Non-current assets
Property, plant and equipment
Land 2369
Fixtures and equipment 13544
Other properties 2783
Property and equipment, at cost 18696
Accumulated Depreciation -9256
Property, plant and equipment, net 9440
Equity and other investments 703
Goodwill 14360
Intangible assets 4576
Deferred income taxes 971
Other long-term assets 398
Total non-current assets 30448
Total assets 40115
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1347
Accounts payable 6615
Deferred income taxes 292
Deferred revenues
Other current liabilities 2163
Total current liabilities 10417
Non-current liabilities
Long-term debt 4066
Deferred revenues
Pensions and other benefits 180
Other long-term liabilities 1511
Total non-current liabilities 5757
Total liabilities 16174

Stockholders' equity
Common stock 22242
Other Equity 133
Retained earnings 1509
Accumulated other comprehensive income 57
Total stockholders' equity 23941
Total liabilities and stockholders' equity 40115

(Source :
Morning Star,
2018).
QANTAS AIRWAYS LTD (QUBSF) Statement of
CASH FLOW
Fiscal year ends in June. AUD in millions except per
share data.
2017-
06
Cash Flows From Operating Activities
Cash Flows From Investing Activities
Investments in property, plant, and equipment -1368
Property, plant, and equipment reductions 34
Acquisitions, net
Purchases of investments -16
Sales/Maturities of investments
Sales of intangibles
Other investing activities -696
Net cash used for investing activities -2046
Cash Flows From Financing Activities
Debt issued 419
Debt repayment -453
Repurchases of treasury stock -564
Cash dividends paid -264
Other financing activities 8
Net cash provided by (used for) financing activities -854
Effect of exchange rate changes -9
Net change in cash -2909
Cash at beginning of period 1980
Cash at end of period -929
Free Cash Flow
Capital expenditure -1368
Free cash flow 1336
Supplemental schedule of cash flow data
Cash paid for income taxes 4
Cash paid for interest 164