200910: Australian Vintage Ltd Case Study - Accounting and Finance Assignment Help

Assignment Task

CSS) - Australian Vintage Ltd (ASX code: AVG) 
For each company, the displayed page summarises general information about the company including the sector and industry in which it operates, total market capitalisation of the firm, latest closing share price, etc. Both firms are operating in the same Sector (Consumer Staples) and Industry Group (Food, Beverage & Tobacco) 
2. On the left-hand side, click on “Financial Data”. The displayed page shows annual and interim information for your assigned companies (in the view bar, make sure you choose annual and not interim data). On the page’s control bar at the top, you will see the first three icons which displays the company’s summarised annual financial statements (income statement (profit & loss statement), balance sheet and the cash flow statement). 
3. The figures shown on the Financial Data page are rounded figures and are not to be used in the calculation of ratios. To access the raw figures for your ratio calculations, select the relevant time period from the ‘year range’ drop down bars, and click on ‘go’. Once the figures appear, click on the ‘download spreadsheet’ button. This will download an Excel file that contains all the relevant financial statements i.e. Profit & Loss Statement, Balance Sheet, etc. 
4. In the downloaded Excel file, you will see a sheet titled “Revenue/Expense” in which you can locate the Cost of goods sold (COGS) for each company for the different years. Note: For one of the companies, you will be required to add up various COGS items to ascertain the total COGS. 
5. For more detailed information about how to obtain the data required for your group assignment, please watch the ‘How to Obtain Data for the Group Assignment’ video. The video is located in the Assessment Zone under the Assessment 2: Numerical Problem Solving link. Ideally, your group members should watch this video prior to commencing the assignment. 
REQUIRED 
Your team has been hired as financial analysts by Provenance Investment Fund. The Fund has identified the Food, Beverage & Tobacco industry group to be experiencing growth and have selected two firms as potential investments. The Fund requires your team to analyse the financial position and performance of the above assigned two companies for the two stated financial years (2018 and 2019), and to provide a recommendation as to which may be the best company for the Fund to invest into, if any. As a financial analyst, you are primarily concerned with three main financial aspects for each of the two firms: overall liquidity, capital structure and shareholders’ profitability. 
Your task involves answering the following 5 questions in your own words (i.e. do not simply “cut and paste” information from the Annual Report or any other source). You must apply critical thinking concepts when explaining and justifying your choices. 
BASED ON THE INFORMATION AVAILABLE ON THE DatAnalysis Premium DATABASE FOR BOTH ASSIGNED COMPANIES, ANSWER ALL OF THE FOLLOWING QUESTIONS (1 TO 5 INCLUSIVE). 
QUESTION 1: 
Analyse the overall liquidity position for each of the two companies in 2019 as compared to 2018. Calculate the values for two liquidity ratios to help support your answer and justify why you have chosen these ratios. Note: ensure that you analyse in this question, not just describe the ratio values. (2 marks) 
QUESTION 2: 
Analyse the sources of finance for each of the two companies in 2019 as compared to 2018. Use two capital structure ratios to support your answer and provide an explanation regarding the changes in the composition of the sources of finance for each enterprise. Note: ensure that you analyse in this question, not just describe the ratio values. (2 marks) 
QUESTION 3: 
Analyse the profitability of invested capital (assets) for each of the two companies in 2019 as compared to 2018. Based on your calculations, explain the main reason(s) for the change in the profitability for each company over the two years. Note: ensure that you analyse in this question, not just describe the ratio values. (3 marks) 
QUESTION 4: 
Using the DuPont method, analyse the profitability of each of the two companies in 2019 as compared to 2018 from a shareholder’s point of view. Based on your calculations, explain the main reason(s) for the change in the profitability for each company over the two years. Note: ensure that you analyse in this question, not just describe the ratio values. (3 marks) 
QUESTION 5: 
In light of your analysis in questions 1 to 4, what is your team’s final recommendation to Provenance Investment Fund, with regards to the potential of investing in any of the two firms? Discuss the basis for your recommendation. (4 marks) 

This Accounting and Finance has been solved by our Accounting and Finance Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.