Financial Analysis of Wesfarmers Limited for Investment

This assignment provides a comprehensive evaluation of Wesfarmers Limited's financial performance. It examines key financial indicators such as return on equity, which indicates how effectively the company generates profit from shareholders' equity, and the working capital ratio, reflecting its ability to meet short-term liabilities with short-term assets. Additionally, net profit after tax is analyzed to understand the company’s profitability post-tax obligations. The assessment also includes an analysis of the financial stability suggested by these metrics over recent years, concluding that Wesfarmers Limited maintains a stable position and is likely to generate profits in upcoming fiscal periods. This evaluation aids investors like Vikram in deciding whether to invest $50,000 based on the company's potential for future growth.

Running head: MASTERS IN PROFESSIONAL ACCOUNTING
Masters in Professional Accounting
Name of the Student:
Name of the University:
Course Code:

MASTERS IN PROFESSIONAL ACCOUNTING
Answer to Question 1
Cell Name
Here, in the above diagram it is showing that total net profit is equal to operating profit
minus taxes paid by the organization.
Net profit = Operating profit – Taxes paid
In the above screenshot, it is shown that Cell D34 is renamed as Net profit.

MASTERS IN PROFESSIONAL ACCOUNTING
Here also Cell D9 is denoted as Gross margin which is equal to net sales – cost of goods
sold.
Gross Margin = Net sales- Cost of goods sold

MASTERS IN PROFESSIONAL ACCOUNTING
Answer to Question 2
Negative Value
In the above screenshot, it is showing that figures in red color with brackets are denoted as
negative figures. Here in the operating profit figures are in -$1,509 in brackets showing negative
operating profit or operating loss for the organization.

MASTERS IN PROFESSIONAL ACCOUNTING
Answer to Question 3
In the spreadsheet, there are two parts – one is the data area and another is report. The
formulae used for the calculation are given in the report section. List of data in an excel sheet is
stored successively in the information region though in the estimation done by a person of the
gathered information after execution of different formulae that additionally incorporates IF
capacities is done is report territory. Thus, just by changing the information, comparative factors
are figured utilizing the report territory in an exceed expectations sheet.
It can be taken as an example, in which the region where the information in regards to
costs and deals are recorded with its esteems is called as information territory. In actuality, for
the computation of net salary by and individual in view of the given information, expansion of
one section ought to be finished with the usage of the recipe to register the net wage easily. This
can be effortlessly perceived by the underneath given print screens.

MASTERS IN PROFESSIONAL ACCOUNTING
Step 1
Step 2

MASTERS IN PROFESSIONAL ACCOUNTING
Answer to Question 4
IF Function

MASTERS IN PROFESSIONAL ACCOUNTING
As indicated by the previously mentioned YouTube video in regards to IF work is
demonstrating the genuine capacity and utility of that system. According to the video, the IF
work is demonstrating a particular situation made in the information table regarding whether it is
valid or it is false. This specific site interface is legitimately clarifying the whole capacity with
the assistance of cursor.
Answer to question 5
Periodic systems
Periodic inventory system is one of the stock frameworks that update stock toward the
finish of every timeframe. This stock framework helps in monitoring stock on occasional
essential (Drury, 2013). No exertion is really required for keeping refreshed information records
of either stock or cost of merchandise sold. This stock framework records the diary sections
toward the finish of bookkeeping period.
Example

MASTERS IN PROFESSIONAL ACCOUNTING
Answer to Question 6
Part A:

MASTERS IN PROFESSIONAL ACCOUNTING
Part B:
Normal View

MASTERS IN PROFESSIONAL ACCOUNTING
Formula View

MASTERS IN PROFESSIONAL ACCOUNTING
Part C:
Normal View