Accounting for Management Decisions

From their establishment in 1914, who was formed as Western Australian Farmer Cooperative, they have qualified to be the largest among the listed companies of Australia. They have their head office in Western Australia. Their wide variety of business involves liquor, supermarkets, convenience stores, hotels, office supplies and home improvement. They also have business departments in fertilisers and energy, chemicals, coal, safety and industrial products. Wesfarmers positioned among the largest employers in private sector employing approximately 220,000 employees and shareholder stands of around 530,000 (Wesfarmers.com.au 2016). Wesfarmers aims to attain their objectives through: Woolworths is the biggest chain for supermarket in Australia. They operate 961 stores and employ 111,000 team members around Australia. They provide their customers with support offices and allocation centres to offer their consumers with better value, range, services and convenience. Woolworths are confident about working closely with farmers and growers from Australia to assure that the best produces are available to their consumers. Their available sources for 96% of vegetables and fresh fruits and 100% of fresh meats are from the growers and farmers of Australia. As the leading retailer of Australia, they appreciate that the customers always search for simple and new way for shopping. To facilitate the consumers to avail the facility of shopping on the go, they had introduces the App for Woolworths supermarket and the best thing is that the groceries are delivered directly to the kitchen bench ("Woolworths Supermarket - Buy Groceries Online", 2016) Woolworths fulfils their objectives through maintain these basic things: Net cash received from operating activities amounted to $3365 million for the year ended 2016. The main receipt under this head was receipt from customers and the major payment was towards the employees and suppliers.   Net cash from investing activities were amounted to ($2132) million. The major payments involved the payment towards the plant, equipments, property and intangibles. Their net cash flows from financing activities are ($1333) million. Major transactions involved under this were proceeds from borrowing and repayment of borrowing. Their year-end cash equivalent and cash was $611 million. In creation of earnings and cash flow, the company utilize exceptional well teams of management who have the capabilities to earn long-term growth and profit. This is obtained by employing best practice principles in maintenance and execution of operation for long-term target concerning results and strategy. The company observes to improve the effectiveness of working capital on a continuous basis for their business. In addition, the company assures the tough discipline with regards to capital expenses and decision of investment.   Net increase in cash or cash equivalents comes in negative figures and amounted to ($100); Only the inclusion of opening cash balance turned the closing balance into positive, which amounted to $611 million (Wesfarmers.com.au 2016) Net cash received from operating activities amounted to $2357.50 million for the year ended 2016. The main receipt under this head was receipt from customers and the major payment was towards the employees and suppliers.   Net cash from investing activities were amounted to ($1266.7) million. The major payments involved the payment towards the plant, equipments, property and intangibles. Their net cash flows from financing activities are ($1474.9) million. Major payments involved under this were payment of dividend and repayment of borrowing. Their year-end cash equivalent and cash was $956 million. Their cash and cash equivalents in the statements of cash flow includes call deposits and cash balance with a maturity period of three months or less than three months. Only the cash from operating activities has been achieved positive results. Cash from financing activities and investing activities are in negative figures, that is, loss. The differences in foreign currency were due to conversion of foreign operations. Differences in exchange causes due to receivable of monetary item or future payment to foreign operation for the agreement to the subject matter, which were not intended or not probable to take place in the near future. These hedges and monetary items are considered being part of the total investment in international operation and classified again into loss or profit on disposal of the total investment. Net increase in cash or cash equivalents comes in negative figures and amounted to ($384.10); Only the inclusion of opening cash balance turned the closing balance into positive, which amounted to $956 million (Woolworths Annual Report 2016).   Wesfarmers limited: $3365/$3798 = 0.88 times or 88% Woolworths limited: $2358/$1983 = 1.19 times or 11.9% Wesfarmers limited: $3365/$10424 = 0.32 times or 32% Woolworths limited: $2358/$8993 = 0.26 times or 26% Wesfarmers limited: $7410/$3365 = 2.20 times or 22% Woolworths limited: $6039/$2358 = 2.56 times or 25.60% Wesfarmers limited: ($3365/$65981)*100 = 5.10% Woolworths limited: ($2357.5/$58275.5)*100 = 4.05% Wesfarmers limited: $9684/$17834 = 0.54 Woolworths limited: $7427/$8993 = 0.83 Wesfarmers limited: $407/$22949*100 = 1.77 Woolworths limited: ($1235)/$8471 = -0.15 #year-end owner’s equity is used instead of the average figure (i)Using profit: Profit/Average total asset# Wesfarmers limited: $407/$40783*100 = 0.99% Woolworths limited: ($1235)/$7427*100 = -16.63% # year-end total assets is used instead of the average figure Wesfarmers limited: $1346/$40783*100 = 3.30% Woolworths limited: $2564/$7427*100 = 34.52% #EBIT = profit after tax + tax expense + net interest expense Wesfarmers limited: $17843/$22949*100 = 77.75% Woolworths limited: $15032/$8471*100 = 177.45% (Source: Woolworths Annual Report 2016) Operating cash flow ratio: The operating cash flow is a measure to calculate the liquidity of a company. If the ratio of cash flow from operation comes less than 1, that means the company has not created enough cash in the related period to pay off their liabilities over short-term period. It is a parameter of how well the company’s current obligations are covered up by the company’s flow of cash from operations (Gupta et al., 2014). Manipulating the flow of cash against the income is regarded as more accurate, cleaner method as the revenues can be influenced. The operating cash flow ratio of Wesfarmers limited is 0.32 and that of Woolworths limited is 0.26. The industry average is 1. Both the company’s operating cash flow ratio is below the average. However, if the two companies are compared, Wesfarmers Limited is in slightly better position than Woolworths Limited (Biddle, Ma & Song, 2013). Debt coverage ratio: Debt coverage ratio is a method of calculating the available cash flow to pay off the obligation of current debt. This ratio explains the total operating income as a compound of debt liability payable within the period of one year and it includes principal, sinking fund, lease payment and interest. In finance of government, it is the export earning required meeting the yearly principal and interest payments on a nation’s external borrowings. On the other hand, in individual finance, the officers of bank loan to estimate the borrowings on property income apply this ratio (Rasoolpur, 2014).   Debt coverage ratio greater than 1 means the company - whether company, person or government – has capability to pay off its current borrowing liabilities with its available income. Debt coverage ratio of less than 1 means the company is not viable. The debt coverage ratio of Wesfarmers limited is 2.20 times and that of Woolworths limited is 2.56 times and the industry average is 1. Both the company’s debt coverage ratio is above the average. However, if the two companies are compared, Woolworths Limited is in slightly better position than Wesfarmers Limited. However, the high ratio always does not mean that the companies are in very good position. It also indicates that the company is not utilising its income properly and are afraid of taking debt from outsides for improvement purpose (Keister & Bech, 2012).    Cash flow to sales ratio: This ratio evaluates the sales revenue with the operating cash flows. This ratio scrutinizes the capability of a company to earn cash from its sales and help the investors to make their investment decisions.   It is stated in percentage terms. Ideally, with the increase in sales, there should be increase in operating cash flow (Friesenbichler, Hà ¶lzl & Hà ¶lzl, 2016). The situation will be troublesome if the movements of cash flows are not corresponding to the movement in sales. The more the ratio, the better the position the company in. it is always desirable to have larger amount of cash flows from operations. The Cash flow to sales ratio of Wesfarmers limited is 5.10% and that of Woolworths limited is 4.05%. It reveals that Wesfarmers is in a better position to generate cash from sales compared to Woolworths Limited (Douglas, Huang & Vetzal, 2016). Base on the above analysis it is concluded that Both the company should attempt to take necessary steps to increase their operating cash flow ratio and to meet at least the industry average of 1. Major portion of the payment for the companies are for supplies and payment to employees. The companies should should take initiatives to increase their production with available supplies and employees so that, their operating income can be increased with minimisation of cost. Biddle, G. C., Ma, M. L., & Song, F. M. (2013). The risk management role of accounting conservatism for operating cash flows.  Available at SSRN 1695629. Douglas, A. V., Huang, A. G., & Vetzal, K. R. (2016). Cash flow volatility and corporate bond yield spreads.  Review of Quantitative Finance and Accounting,  46(2), 417-458. Friesenbichler, K. S., Hà ¶lzl, W., & Hà ¶lzl, K. (2016). Cash-Flow-to-Sales Ratio Unchanged in 2015. Profitability of Austrian Manufacturing.  WIFO Bulletin,  21(11), 136-145. Gupta, J., Wilson, N., Gregoriou, A., & Healy, J. (2014). The value of operating cash flow in modelling credit risk for SMEs.  Applied Financial Economics,  24(9), 649-660. Home - Woolworths Annual Report 2016. (2016). Wow2016ar.qreports.com.au. Retrieved 26 December 2016, from https://wow2016ar.qreports.com.au/ Home. (2016). Wesfarmers.com.au. Retrieved 26 December 2016, from https://www.wesfarmers.com.au/ Kaplan, R. S., & Atkinson, A. A. (2015).  Advanced management accounting. PHI Learning. Keister, T., & Bech, M. L. (2012). On the liquidity coverage ratio and monetary policy implementation.  BIS Quarterly Review December. Rasoolpur, G. S. (2014). Impact of Cash Flow Coverage, Debt Service & Current Ratio on Capital Structure Decisions: Empirical Evidence from the Indian Corporate Sector.  Journal of Research in Marketing,  3(1), 232-238. Reports. (2016). Wesfarmers.com.au. Retrieved 26 December 2016, from https://www.wesfarmers.com.au/investor-centre/company-performance-news/reports Woolworths Supermarket - Buy Groceries Online. (2016). Woolworths Online. Retrieved 26 December 2016, from https://www.woolworths.com.au/

Encoding Study Essay Example | Topics and Well Written Essays - 2500 words

Encoding Study - Essay Example In the following report, an understanding on how two primary procedures of encoding are rather effectively affecting the memory use of the young students shall be examined. Through an experimentation process, the entire study shall be based on evidence proven approach that would likely involve the use of certain willing participants and the evaluation of the results that are to be handled by the researchers early on. 2 The process by which the mind stores an awful lot of information in the head of human individuals is a great and awesome truth about the amazing capabilities of the human body’s capability to respond to the environment that a person lives in. Not a single super computer could amount to the capability of the human mind to store information about a hundredfold of details about different matters of consideration that a person is most likely interested in. 3 This particular capability of the mind is the basic reason why there is learning. The belief that growth comes along with the process of mindful maturity and the amount of information stored and utilized by the human minds is indeed considered as the basic foundation of the reasons behind the establishment of several learning institutions today.4 Truthfully, the entire process of storing and utilization of information is taken considerably by the human mind as the main function that it contributes to the function of the human body. However, not all human individuals are able to utilize the memory function of their minds. Some are able to develop an easier personal process of storing information in their minds, while some others find it hard to recall certain details that they were already supposed to know since their mind has already been fed with the information that they need to know.5 For this particular reason, the need to develop and investigate existing procedures of memory enhancement among students is pursued by many educators

Genetically Modified Foods Research Paper Example | Topics and Well Written Essays - 1500 words

Genetically Modified Foods - Research Paper Example Genetically modified foods also known as biotech foods are foods that are manufactured artificially. Unlike other natural foods, genetically modified foods are produced from genetically modified organisms (GMOs). Most genetically modified foods produced by genetically modified organisms are crops. The crops produced from genetically modified organisms include maize, wheat, beans, tomatoes and rice to mention but a few. GMOs are organisms that had changes in their bodies which were done by the introduction of some hormones into their bodies (Halford 2003). These changes were different from the mutational changes that are done to other organisms by genetic engineers. The commercial selling of genetic modified food products is believed to have begun in 1994. Scientists or rather genetic engineers began to produce genetically modified crops because they wanted to curb the increasing global hunger by then. The genetically modified crops undergo faster growth unlike the natural crops (Half ord 2003). Therefore, this helped to curb the menace of hunger. Genetically produced crops are also resistant to pathogens and other types of pests. This makes them to be produced in large amounts enough to cater for the rising world population. It was also found out that the natural crops lacked some nutrients such as iron and calcium. Therefore, the production of GMOs began since they produced extra nutrients which were helpful to children and pregnant mothers. However, after some years, the production of genetically modified food products faced strong opposition from world organizations.... In addition, the paper also discusses the possible solutions to the problems caused by the genetically produced food products. Opposing viewpoint There have been campaigns which encourage the supply of genetically modified products in the global market. Several organizations such as the European Union began to oppose the commercial sale of the products because the organization believed that the products were not good for human health. Several scientists were against the idea to encourage the production of genetically modified food products. However, one scientist who was popular because of his pro GMO campaigns was known as Thierry Vrain. Vrain in his campaigns gave alternative perspectives and proposed different methods of addressing the issue of genetically modified food products. To begin with, Vrain suggested that the growth of natural crops through irrigation is tiresome and hence should not be enhanced. He also suggested that the sale of genetically modified food products shoul d be enhanced globally. Vrain also supported biotechnology which encouraged the production of genetically modified food products. He proved his stand by withdrawing from a group of scientists who held meetings to campaign against the genetically modification of food products. However, according to this documented research paper, Vrain’s stand on genetically modified food products is found to be invalid. This is because the naturally grown crops such as maize, wheat, tomatoes, and beans among others were found to be very healthy and of good quality (Halford 2003). Especially among pregnant mothers and young children, they were discovered to provide certain nutrients such as iron and calcium which are not found in genetically modified