Please look up the attached file and can you solve this assessment?

MARKING CRITERIA Attempt Result st Date 1 Attempt Satisfactory Unsatisfactory 2nd Attempt Satisfactory Unsatisfactory Did the student satisfactorily: 1 Part A: Calculate correctly nine financial ratios 2 Prepare report to management on ratios with appropriate conclusions/recommendations 3 Identify and categorise source of information on financial products and markets 4 Prepare report to management on risks of expansion overseas 5 6 7 Calculate WACC Part B: Calculate six alternative methods of evaluating projects Select correct answer to M/C question on evaluating independent projects / /20 / /20 1st Attem pt S U 2nd Attem pt S U The following case study has been prepared to assess your ability to meet specific performance criteria required in the unit FNSACC501 Provide Financial and Business Performance Information. Specifically this case study will assess skills and outcomes associated with providing financial information. To indicate that you have achieved the elements of competency listed in this unit you must provide evidence of the ability to: access clients' needs and analyse their financial data prepare and document appropriate advice for clients that: complies with financial legislation and accounting standards, practices and principles assesses taxation, compliance and business viability issues faced by clients assesses risk management options and practices. Students must also demonstrate the following knowledge by providing evidence they can: explain the key requirements of taxation legislation relating to deductions, allowances and charges list the key areas that can cause significant taxation issues compare and contrast forecasting techniques identify and explain the key features of government financial policy and secretary's financial management instructions explain the key requirements of relevant corporations and consumer legislation describe a range of methods for presenting and formatting financial data identify and explain the key principles of cash flow and budgetary control identify and categorise sources of information on financial products and markets outline a range of risks and contingencies and risk management options relating to financial and business performance outline client rights and responsibilities.\" In addition you should be able to demonstrate the foundation skills listed on the following page: 1. response to the Assessment task in the blank pages which follow. Jolfa Ltd. is an Australian retailing company. Currently, Jolfa Ltd. only operates in Australia. The Balance Sheet and Income Statement for Jolfa Ltd. are given below. Jolfa Ltd. Balance Sheet as at 30 June, 2015Current Assets Cash Accounts Receivable Inventory Non-Current Assets Plant and equipment Land and Building Goodwill Total Assets Current Liabilities Accounts Payable Provn for Long Service Leave Non-Current Liabilities Debentures Mortgage loan Total Liabilities Net Assets $ '000 $ '000 50 80 120 250 950 1100 140 280 85 550 220 Equity Share Capital: 1,150,000 ordinary shares issued at $1.00 Retained earnings Total Equity Additional information 2190 2440 365 770 1135 $1305 1150 155 $1305 Current share price is $1.55 Most recent dividend was $0.05 per share. Dividends are expected to grow by 7% per year. 550 Debentures were issued with a face value of $1,000 trading at par value of 8.5% The mortgage loan is currently at a variable rate of 8.9%. Jolfa Ltd. Income Statement For the Year Ended 30 June 2015 $ '000 $ '000 Total Sales 2310 Less cost of goods sold Opening Inventory 220 Purchases 1620 Goods available for sale 1840 Less closing Inventory 120 1720 Gross Profit 590 Less operating expenses Depreciation 110 Interest 90 Rent 30 Wages 150 Advertising/marketing 20 Other 40 Total Expenses 440 Net Profit before tax 150 Tax 45 Net Profit After Tax 105 Industry standards/benchmarks Current Ratio Liquid Ratio 1.45:1 1.06:1 Debt to Equity ratio 160% Earnings per Share $0.45 per share P/E ratio 15 Return on Equity 10.5% Net Profit Ratio 22% Times Interest Covered 4 times Dividend Payout ratio 20% A. From the information provided calculate the: i. Current Ratio ii. Liquid Ratio iii. Debt to Equity ratio iv. Earnings Per Share v. P/E ratio vi. Return on Equity vii. Net Profit ratio viii. Times interest covered ix. Dividend Payout Ratio B. Prepare a report to the management of Jolfa Inc in which you discuss each of the ratios from above. Compare the ratios to the industry standards given. Provide management with some ideas as to how the company could improve the ratios so that the majority are above the industry standards. How would improving these ratios benefit the company? Keep in mind that your suggestions may improve some ratios and worsen others. C. As a financial manager you would use many different types of products (ie. for example Money Market magazines, etc. ) to source information on borrowings, investments and any new opportunity available to the business. Briefly identify and categorise source of information on financial markets and products that you could access. D. Jolfa Ltd. is considering opening a new outlet in China. It has estimated future cash flows and based on these it has decided that the new outlet will be a profitable investment. What are the possible risks that the company might face if it does so? E. Calculate the WACC of Jolfa Inc using the above information. Assume a company tax rate of 30% Note: All calculations should be made to at least three decimal places in parts a) and e) above. Case StudyPart A a) Ratios b) Report to Management c) Briefly identify and categorise source of information on financial markets and products that you could access. d) Report on Possible Risks of New Chinese Operation e) WACC Calculation Case StudyPart B Part B consists of two sections. In (a) you must calculate six methods to evaluate projects. In (b) you must select the correct response to one multiple choice question. (Highlight/indicate which option is the correct answer.) (a) Jolfa Ltd is also considering the following investment project: Capital outlay $200,000 Net Profit p.a. (before depreciation and tax) $ 90,000 Depreciation p.a. $ 40,000 Economic life: 5 years Salvage value: Zero Tax rate payable (assume paid in year of income): 30% Required rate of return: 12% (WACC + Risk factor) Assessment Task: Calculate the following: (i) The Net Profit After Tax for each year. (ii) The Annual Cash Flow for each year. (iii) Accounting Rate of Return (using total investment). (iv) Payback Period. (v) Net Present Value. (vi) Internal Rate Of Return (b) Evaluating projects on an Independent Basis (rather than Mutually Exclusive) and using NPV evaluation method would mean: (i) Choose the individual project with the highest NPV (Net Present Value). (ii) Choose the individual project with the highest ARR. (iii) Choose all projects with a positive NPV. (iv) Choose all projects with an ARR greater than the W.A.C.C. This page has been left blank for you to write your response to Part B of this Case Study