Solution
Robert answered on
Dec 26 2021
From its origins in 1914 as a Western Australian farmers' cooperative, Wesfarmers has
grown into one of Australia's biggest listed companies. With headquarters in Western
Australia, its diverse business operations cover: supermarkets, hard drink, hotels and
convenience stores; home improvement; office supplies; department stores; and an
industrial division with businesses in chemicals, energy and fertilisers, industrial and
safety products and coal. The Group reported a net profit after tax (NPAT) of $1,577
million for the half-year ended 31 December 2016, an increase of 13.2 per cent on the
prior co
esponding period. Earnings per share increased 12.8 per cent to
$1.40 per share, and return on equity increased 20 basis points to 10.2 per cent.
BANZ delivered very solid improvements in both earnings and return on capital due
to good execution of its strategic agenda. In the United Kingdom and Ireland,
Bunnings (BUKI) Has moved at pace, making substantial progress on phase one of its
transformation plan. Earnings for BUKI were affected by necessary restructuring,
including clearance of deleted lines and high levels of price deflation associated with
the movement to ‘Always Low Price'' the Group continues to remain generally
optimistic in its mindset. Strong momentum and solid market positions provide for a
positive outlook for BANZ, Kmart and Officeworks for the second half of the
financial year. Coles will continue to concentrate on delivering a strong customer
proposition to support long-term growth in earnings and returns. In the short term,
margin pressures are required to persist as the focus remains on delivering customer
value in a competitive market. Target’s performance in the second half is expected to
improve relative to the prior comparable period as merchandising progressively
improves and restructuring costs and provisions incu
ed in the prior year are not
epeated.
The general aim of the financial statements is to provide information about the results
of operations, financial position, and cash flows of an organization. This data is used
y the readers of financial statements to make decisions regarding the allocation of
esources. At a more refined degree, there is a different purpose associated with each
of the financial state, the income statement informs the reader close to the ability of a
usiness to generate a profit. In summation, it reveals the volume of sales, and the
nature of the various types of expenses, depending upon how expense information is
aggregated. When reviewed over multiple time periods, the income statement can also
e applied to analyse trends in the results of company operation. The determination of
the balance sheet is to inform the reader about the cu
ent status of the business as of
the date listed on the balance sheet. This data is used to estimate the liquidity, funding,
and the debt position of an entity, and is the basis for a number of liquidity ratios.
Ultimately, the purpose of the statement of cash flows is to show the nature of cash
eceipts and disbursements, by a variety of category. This information is of
considerable employment, since cash flows do not always match the revenues and
expenses shown in the income statement. As a group, the total set of financial
statements can also be assigned several additional purposes, which are:
•Credit decisions are faster- Lenders use the integral set of information in the
financial to determine whether they should extend credit to a business, or restrict the
amount of credit already extended.
•Investment decisions are based accordingly- Investors use the data to decide whether
to invest, and the price per share at which they want to invest. An acquirer uses the
data to develop a price at which to offer to buy a business.
•Taxation decisions- Government entities may tax a business founded on its assets or
income, and can derive this information from the financial.
•Union bargaining decisions- A union can base its bargaining positions on the
perceived ability of a clientele to pay; this information can be gleaned from the
financial statements.
In addition, financial statements can be presented for individual subsidiaries or
usiness segments, to...