Managing Finances - Assignment

Manage Finances

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview about company:...............................................................................................................1
Activity 1A...................................................................................................................................1
Activity 1B...................................................................................................................................2
Activity 1C...................................................................................................................................2
Activity 1E...................................................................................................................................2
Activity 1F...................................................................................................................................2
Activity 2A...................................................................................................................................3
Activity 2B...................................................................................................................................3
Activity 2C...................................................................................................................................3
Activity 3A...................................................................................................................................4
Activity 3B...................................................................................................................................4
Activity 3C...................................................................................................................................4
Activity 4A...................................................................................................................................5
Activity 4B...................................................................................................................................5
Activity 4C...................................................................................................................................5
Activity 4D...................................................................................................................................5
SKILLS AND KNOWLEDGE ACTIVITY....................................................................................6
MAJOR ACTIVITY......................................................................................................................12
Plan for financial management..................................................................................................12
Establish budgets and allocate funds.........................................................................................13
Report on the business’ finances................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES .............................................................................................................................18

INTRODUCTION
In present scenario, it is very crucial to manage money and finance related objects that
help to survive in dynamic environment and sustain for long. Managing finance is a systematic
approach that support in tracking expenses (Archer, 2012). Investing, budgeting, banking and
evaluating taxes of money so that meaning full decision are taken for improvement. Finance
management is a important method to form money produce the advanced interest output worth
for any amount spent within specific time frame. To better understand the context the managing
finance Wesfarmers has been selected. It is an Australian company that is engaged in various
business operations so there it is essential to manage finance for manager.
In this topic, review and analysis of previous financial data, reasons for previous profit
and loss, various resources, requirement for compliance and liabilities foe tax, review about
existing software is discussed. Report also shows allocation for resources, estimates of new items
for inclusion in budgets, prepare budget for requirement and statutory needs, circulate budgets
and ensure managers to take decision, manage risk by checking opportunities for misappropriate
of funds, review of profit and loss statements. Apart this, proper structure and reports, significant
issues in statements, prepare recommendations have been discussed.
Overview about company:
Wesfarmers Limited is Australian company which has its headquarter in Perth, Western
Australia and it also cooperate business in New Zealand (About Wesfarmers, 2018). Company
deals in retail, fertilisers, chemicals, coal mining and industrial and safety products. The
Farmers’ and other settler association of Western Australia established respective firm in 1914 as
a cooperative company. It has different business operation such as home improvement, outdoor
living, general and apparel merchandise, office equipments and also industrial sections fertilisers
and energy product, chemicals and safety products.
Activity 1A
In retail area in Wesfarmers Limited is most significant business area because company
generates highest income through this area. To determine performance in retail department,
vertical and horizontal analysis along with past data of company is most appropriate. It is very
important for every organisation to compare present financial data with past data because it helps
to take better decision to run a business by comparison. As per reported in P&L of company, net
income available for shareholder is $2440million in last quarter of year 2018 whereas it was

$1197 million in first quarter which indicates that company's efficiency to generate income is
increased as compare to past quarter data. In second and third quarter company has reported net
income of 2873 million and 407 million which clearly indicates that in third quarter company's
net income is lowest.
(All numbers in thousands)
Balance sheet
Period ending 31/12/2018 30/9/2018 30/6/2018 31/3/2018
Current assets
Cash and cash equivalents 2,04,900.00 3,07,350.00 5,12,250.00 6,83,000.00
Short-term investments 0.00 0.00 0.00 0.00
Net receivables 4,97,100.00 7,45,650.00 12,42,750.00 16,57,000.00
Inventory 18,03,300.00 27,04,950.00 45,08,250.00 60,11,000.00
Other current assets 1,06,500.00 1,59,750.00 2,66,250.00 3,55,000.00
Total current assets 26,11,800.00 39,17,700.00 65,29,500.00 87,06,000.00
Long-term investments 2,24,400.00 3,36,600.00 5,61,000.00 7,48,000.00
Property plant and equipment 25,22,400.00 37,83,600.00 63,06,000.00 84,08,000.00
Goodwill 40,47,300.00 60,70,950.00
1,01,18,250.0
0
1,34,91,000.0
0
Intangible assets 13,10,700.00 19,66,050.00 32,76,750.00 43,69,000.00
Other assets 3,63,300.00 5,44,950.00 9,08,250.00 12,11,000.00
Deferred long-term asset charges 2,07,600.00 3,11,400.00 5,19,000.00 6,92,000.00
Total assets
1,10,79,900.0
0
1,66,19,850.0
0
2,76,99,750.0
0
3,69,33,000.0
0
Current liabilities
Accounts payable 19,62,300.00 29,43,450.00 49,05,750.00 65,41,000.00
Short/current long-term debt 3,47,700.00 5,21,550.00 8,69,250.00 11,59,000.00
Other current liabilities 2,67,000.00 4,00,500.00 6,67,500.00 8,90,000.00
Total current liabilities 30,07,500.00 45,11,250.00 75,18,750.00
1,00,25,000.0
0
Long-term debt 8,89,500.00 13,34,250.00 22,23,750.00 29,65,000.00
Other liabilities 3,56,700.00 5,35,050.00 8,91,750.00 11,89,000.00

Total liabilities 42,53,700.00 63,80,550.00
1,06,34,250.0
0
1,41,79,000.0
0
Stockholders' equity
Common stock 66,83,100.00
1,00,24,650.0
0
1,67,07,750.0
0
2,22,77,000.0
0
Retained earnings 52,800.00 79,200.00 1,32,000.00 1,76,000.00
Treasury stock 90,300.00 1,35,450.00 2,25,750.00 3,01,000.00
Capital surplus 0.00 0.00 0.00 0.00
Other stockholder equity 90,300.00 1,35,450.00 2,25,750.00 3,01,000.00
Total stockholder equity 68,26,200.00
1,02,39,300.0
0
1,70,65,500.0
0
2,27,54,000.0
0
Net tangible assets 14,68,200.00 22,02,300.00 36,70,500.00 48,94,000.00
Income Statement
Revenue 30/06/18 30/06/17 30/06/16 30/06/15
Total revenue 66883000 64913000 65981000 62447000
Cost of revenue 46123000 45033000 45930000 43424000
Gross profit 20760000 19880000 20051000 19023000
Operating expenses
Selling general and administrative 13108000 12485000 12884000 11854000
Others 2352000 2432000 2702000 2562000
Total operating expenses 62781000 61125000 62812000 59059000
Operating income or loss 4102000 3788000 3169000 3388000
Income from continuing operations
Total other income/expenses net -252000 141000 -2131000 56000
Earnings before interest and taxes 4102000 3788000 3169000 3388000
Interest expense -186000 -219000 -266000 -271000
Income before tax 3850000 3929000 1038000 3444000
Income tax expense 1246000 1169000 631000 1004000
Net income from continuing 2604000 2760000 407000 2440000

operations
Non-recurring events
Discontinued operations -1407000 113000 113000 113000
Net income 1197000 2873000 407000 2440000
Net income applicable to
common shares 1197000 2873000 407000 2440000