Examine the following information retrieved from the Wesfarmers Limited and Woolworths financial reports. Cash flow from...

 

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Examine the following information retrieved from the Wesfarmers Limited and Woolworths financial reports. Cash flow from operating activities Cash flow from investing activities Outflow Payment for property, plant and equipment Other Inflow Total Cash flow from financing activities Outflow Inflow Total Beginning Cash Balance Ending Cash Balance Dividends Paid Other Information Net Sales Current Assets Non-current Assets Current Liabilities Non-current Liabilities Wesfarmers Limited 2008 $.000 $1,451 (1,241) (4,355) 95 (5,501) ii. iii. iv. (8,993) 13,465 4,472 216 638 (754) 31,650 8,676 28,630 7,940 9.776 2007 $'000 $1,301 (680) (3,562) 48 (4,194) (1,165) 4,191 3,026 83 216 (765) 8,239 4,024 8,052 7,182 1.391 Woolworths 2008 $'000 2,654.0 (1,733.6) (262.9) 243.1) (1,753.4) (7,343.0) 6,406.2 (936.8) 798.8 754.6 (862.5) 47,158.1 4,502.2 11,170.3 6,424.4 3,012.8 2007 $'000 2,294.2 (1,113.4) (394.6) 782.9 (725.1) (11,459.5) 10,160.7 (1,298.8) 525.9 798.8 (355.2) 42,586.8 4,161.0 10,255.1 5,502.8 3,398.6 a. Undertake an analysis of the cash flow information given for Wesfarmers and Woolworths. Include in this analysis the computation of the various cash flow ratios. b. Based on the analysis answer the following questions: i. Which business would you expect to be a better short term credit risk? Do you think both companies have adequate cash resources? Assess both companies ability to survive in the longer term? Which company is better at generating cash from their sales revenue? Examine the following information retrieved from the Wesfarmers Limited and Woolworths financial reports. Cash flow from operating activities Cash flow from investing activities Outflow Payment for property, plant and equipment Other Inflow Total Cash flow from financing activities Outflow Inflow Total Beginning Cash Balance Ending Cash Balance Dividends Paid Other Information Net Sales Current Assets Non-current Assets Current Liabilities Non-current Liabilities Wesfarmers Limited 2008 $.000 $1,451 (1,241) (4,355) 95 (5,501) ii. iii. iv. (8,993) 13,465 4,472 216 638 (754) 31,650 8,676 28,630 7,940 9.776 2007 $'000 $1,301 (680) (3,562) 48 (4,194) (1,165) 4,191 3,026 83 216 (765) 8,239 4,024 8,052 7,182 1.391 Woolworths 2008 $'000 2,654.0 (1,733.6) (262.9) 243.1) (1,753.4) (7,343.0) 6,406.2 (936.8) 798.8 754.6 (862.5) 47,158.1 4,502.2 11,170.3 6,424.4 3,012.8 2007 $'000 2,294.2 (1,113.4) (394.6) 782.9 (725.1) (11,459.5) 10,160.7 (1,298.8) 525.9 798.8 (355.2) 42,586.8 4,161.0 10,255.1 5,502.8 3,398.6 a. Undertake an analysis of the cash flow information given for Wesfarmers and Woolworths. Include in this analysis the computation of the various cash flow ratios. b. Based on the analysis answer the following questions: i. Which business would you expect to be a better short term credit risk? Do you think both companies have adequate cash resources? Assess both companies ability to survive in the longer term? Which company is better at generating cash from their sales revenue?

Answer rating: 100% (QA)

Wesfarmers Limited Woolworths 2008 2007 2008 2007 a Cash flow margin ratio Cashflow from operation S... View the full answer