FINANCIAL INFORMATION: COURSEWORK ASSIGNMENT
Accounting Coursework in a Word Document up to 1500 words with tables and graphs explaining how the calculations were made. The coursework is on the Tesco Company statements. Three files are attached, file is the coursework explanation, number two is the balance sheet, and number three is some extra information about the Tesco company as a guidance.
The following questions have to be answered.
What is (are) the principal activity(ies) of this business?
Comment on the outcome of the auditor’s report for Tesco Plc. Briefly discuss the importance the auditor’s report with respect to financial information.
Compute the following ratios, using the table provided below as a template:
a) Return on equity (ROE)
b) Gross profit margin
c) Net profit margin
d) Current ratio
e) Inventory (stock) turnover period
f) Trade payables’ (creditors’) turnover period
g) Gearing ratio
h) Price earnings ratio
Ratio Expression 2013 2012 2013
Eg Trade receivables period
39 days 26 days –
Gross profit margin
Net profit margin
Inventory turnover period
Payables’ turnover period
Calculate the yearly percentage change in the following items stating, in each case, whether the change is a rise or fall:
b) Operating Profit
c) Share Price
Comment and reflect upon the ratios and percentage changes in items computed in your answers to questions 3 and 4.
Using the DuPont analysis technique, evaluate and comment on any changes in profitability (ROE) from 2012 to 2013. In particular, use the DuPont method to assess which aspects of the company’s performance have played a key role on the change in its profitability (if any)
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