Examine the reconciliation of cash flows from operations


Assignment: Analysis & Excel

Instructions

Read the Forge Group Ltd. [PDF] attached below case study and complete the following requirements.

Quantitative Analysis:

Refer to FGL's June 30, 2013, financial reports to complete the following:

a. Calculate the accounting equation at the beginning and end of the year and the changes between the beginning and end of the year.
b. Identify the changes in the company's equity during 2013.
c. Compare the value of the main asset to total equity.
d. Outline the "other" item that makes up comprehensive income.
e. Outline the largest expenses on the income statement. Compare them to the cash, debtors, creditors, and inventory balances.
f. Identify the total revenue and net profit attributable to members of FGL and earnings before interest and tax (EBIT).
g. Outline the three major reconciliation items

Qualitative Analysis:

In a 2 pages report, based on the results of your quantitative analysis, discuss the following items:

a. Speculate on why there were changes in the company's equity during 2013.

b. Your conclusion from the comparison of the main asset to total equity.

c. Why it is important to segregate comprehensive income on the income statement?.

d. Comment on the comparison of the largest expenses to the cash, debtors, creditor, and inventory balances.

e. Compare the net profit with the net cash flows from operating activities. Which amount is larger? Is this normal?

f. Examine the Reconciliation of Cash Flows from Operations with the net profit after tax (NPAT). Discuss how the three major reconciliation items changed. Comment on the changes discovered in the cash flow/profit reconciliation amounts.

g. Outline the changes that have occurred in the company's financing activities. State your opinion on the appropriateness of the quantum of the dividends paid to shareholders.

h. State what investment activity FGL undertook in 2013. Was there a net investment or a divestment?

Format your assignment according to the following formatting requirements:

o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.

o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.

Attachment:- Forge-Group-Case-Study.rar

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