Financial Information for Decision Making (ACC10007)

Group Assignment – Bega Group Limited

Semester 2, 2023

Due date: Friday 20 October 2023 at 11:59pm (Week 11)

Submission: Online via Canvas (late assignments) – A penalty of 10

marks (out of a total of a 100 marks) per day will apply to late assignments.

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GENERAL
Students are encouraged to commence this assignment as soon as
practicable, noting that the analysis of financial statements using appropriate
ratios is covered in week 7 & 8. This is a group assignment (maximum of four
students) and is not to be undertaken independently.

REQUIREMENTS
• You are required to undertake financial statement analysis on Bega and
prepare a written report (4,000 words) - see required structure below.
• Use the data from Bega’s financial statements to undertake financial
statement analysis.
• Your report must incorporate financial statement analysis that examines
the profitability, asset efficiency, liquidity, capital structure (solvency) and
cash flows of Bega.
• Your report should cover a 3-year period for the periods ending 2021, 2022
and 2023 and should be sufficiently broad in scope to demonstrate your
understanding of findings, following the analysis.
• The Bega Annual Reports can be downloaded via Canvas.
• Please use the Annual Reports as indicated:
- Use the 2023 Annual Report for all values relating to 2023 and 2022
- Use the 2021 Annual Report for all values relating to 2021 and 2020

REPORT STRUCTURE
1. Title Page
• Title of your report
• Group allocation (i.e., Name of tutor, time and day of tutorial,
Group number)
• Student names and I.D.

2. Declaration and Statement of Authorship (See Appendix A)

3. Group Contribution Table (See Appendix B)

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4. Executive Summary
• A brief discussion of the aim and scope of the report.
• A brief discussion of the company.
• A brief discussion of key findings and recommendations.

5. Company and Industry Background

• Brief company profile of Bega – include its history, financial highlights,
and other relevant company information such as when and where it
started operations; any major expansions and acquisitions from then
to now; types of products/services it offers, significant business
relationships.
• Industry – includes identifying which industry it operates in, an
understanding of the state of the industry and identifying major
competitors.

6. Ratio calculations
The minimum ratios to be calculated for each of the 3 years (20210, 2022
and 2023) are:
• Profitability
o Return on Equity
o Return on Assets
o Gross Profit Margin
o Net Profit Margin
o Cash Flow to Sales
o Asset Turnover

• Liquidity
o Current Ratio
o Quick Ratio
o Cash Flow Ratio

• Asset Efficiency
o Days in Inventory
o Days in Debtors
o Activity Cycle

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 • Capital Structure (Solvency)
o Debt Ratio
o Debt to Equity Ratio
o Equity Ratio
o Debt Coverage Ratio
o Interest Coverage

Assumptions and other useful information for calculating ratios:

• Provide 2 decimal points for your final ratios.
• Ratio formulas to be used as per the Week 7 and 8 Lecture Videos.
• Assume that 50% of sales are credit sales.

7. Analysis and interpretation of financial ratios

• Based on the financial reports and other information, undertake
financial statement analysis and interpretation that covers the three
financial years ending 2021, 2022 and 2023, concentrating on the
following aspects:
• Profitability
• Liquidity
• Asset Efficiency
• Capital Structure (Solvency)
• Please note that analysis does not mean just restating the ratios or their
formulas you need to discuss the reasons why the ratio changed and its
implications.
• Your analysis should incorporate benchmarking such as comparison to
competitors and/or industry averages.
• It is important that you link your ratios where appropriate…i.e., the
DuPont Formula!
• Students are encouraged to look beyond COVID as the obvious reason
for changes in ratios. Adhering to only ‘COVID’ as the cause for
changes in the ratios will not qualify as well-rounded analysis.

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 8. Analysis and Interpretation of Cash Flow Statements
• Your analysis should also include a review of Bega’s operating,
investing, and financing cash flows over the three years. Consider
absolute figures, trends and any relevant ratios to assist your analysis.
Provide explanations why there has been changes in Bega’s cash flows.

9. Assessment of other relevant information

• An assessment of other information, including non-financial, that is
relevant to the assessment of Bega. For example, global events,
industry developments and issues, unusual or one-off events, structural
changes to the company such as changes in board composition,
mergers or acquisitions, economic factors, charities etc. and any other
relevant issues which may potentially impact on the operations of the
company.

• Consider also its environmental and social performance.

11. Summary and conclusion

• Based on your analysis and findings, summarise Bega’s current financial
situation, consider its potential outlook and make any
recommendations that would improve Bega’s performance and/or
position in the categories you have examined.

12. Appendices
• Include any appendices

13. References
Please follow the American Psychology Association (APA) referencing
style. The APA style guide can be found here:
https://www.swinburne.edu.au/library/search/referencing-guides/apa-
style-guide/

SUBMISSION CONSIDERATIONS
• Word limit 4,000 words (excluding tables, graphs and appendices, title
page, executive summary and bibliography).
• This assignment (including the Group Assignment Contract) is worth 20% of
your final assessment.

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• The report must be the work of the group and any material used from other
sources (particularly reports from banks, investment analysts/brokers, etc.)
must be acknowledged and appropriately referenced.
• The report format and structure, spelling, grammar and punctuation will all
be considered.
• All references should be appropriately acknowledged.
• Other types of useful information may be available from the following
sources:
• Industry Context: Australian Bureau of Statistics (ABS), IBIS (Swinburne
University Library has access to some but not all ABS and IBIS information);
• Market: Australian Securities Exchange (ASX) www.asx.com.au.
• Newspapers: Australian Financial Review, other newspapers and
business publications.
• Newsletters issued by stockbrokers and fund managers.
• Note: Students are not expected to purchase industry or company
specific reports from commercial suppliers. Only resources which are
available through Swinburne University Library or on corporate or other
websites (or other media such as Newspapers electronically available
for example) and which are free of charge are expected to be used.
• Only one submission per group is required. Submission instructions will be
provided on Canvas.
• No extensions will be considered for the assignment submission due date
unless a written request is submitted to and agreed by the Unit
Convenor. A penalty of 10 marks (out of a total of a 100 marks) per day
will apply to late assignments.
• Please refer to Canvas for a detailed marking rubric.

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 Appendix A
Declaration and Statement of Authorship

All students must agree to the following declaration when submitting assessment
items

1. I/we have not impersonated, or allowed myself/ourselves to be impersonated by

any person for the purposes of this assessment.
2. This assessment is my/our original work and no part of it has been copied from
any other source except where due acknowledgement is made.
3. No part of this assessment has been written for me/us by any other person except
where such collaboration has been authorised by the lecturer/teacher
concerned.
4. I/we have not previously submitted this work for a previous attempt of the unit,
another unit or other studies at another institution.
5. I/we give permission for my/our assessment response to be reproduced,
communicated, compared and archived for plagiarism detection,
benchmarking or educational purposes.
I/we understand that:
• Plagiarism is the presentation of the work, idea or creation of another person as
though it is your own. It is a form of cheating and is a very serious academic
offence that may lead to exclusion from the University.
• Plagiarised material may be drawn from published and unpublished written
documents, interpretations, computer software, designs, music, sounds, images,
photographs, and ideas or ideological frameworks gained through working with
another person or in a group.
• Plagiarised material can be drawn from, and presented in, written, graphic and
visual form, including electronic data and oral presentations. Plagiarism occurs
when the origin of the material used is not appropriately cited.

I/we agree and acknowledge that:

1. I/we have read and understood the Declaration and Statement of Authorship
above.
2. I/we accept that use of my Swinburne account to electronically submit this
assessment constitutes my agreement to the Declaration and Statement of
Authorship.
3. If I/we do not agree to the Declaration and Statement of Authorship in this
context, the assessment outcome may not be valid for assessment purposes and
may not be included in my/our aggregate score for this unit.

Penalties for plagiarism range from a formal caution to expulsion from the university,
and are detailed in the Student Academic Misconduct Regulations 2012.

Signatures:

………………………………………………………………………………………………………..

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 Appendix B
Group Contribution Table

The Group Assignment requires your team to complete the following table
listing the group members who contributed and the agreed level of
contribution by all group members. (If all group members contribute equally it
is assumed the level of contribution would be listed as 100%)

Group Member Level of Contribution (0- Comments

Name 100%)

As an example – if team “Ace” receives a score of 80% for their group

assignment – and all team members saw a 100% contribution level recorded,
then all team members would receive the full 80% team score. A team
member who had a 50% contribution level recorded would receive an
adjusted mark of 40% (50% of the 80% team result). As a formula the individual
mark received for a team assignment is:

Individual Mark = (Level of Contribution) * Group Mark

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 Appendix C – Suggested Ratio Calculation Table

Detailed ratio calculations…include in an appendix. This will be a rather long

table with many numbers and formulas

Ratio 2021 2020 2019

Profitability
ROA = write the Substitute values Substitute values Substitute values
formula from annual report from annual report from annual report
and show workings and show workings and show workings
and get the FINAL and get the FINAL and get the FINAL
answer answer answer
Solve all profitability
ratios with detailed
SAME as above SAME as above SAME as above
workings like above
and move on to the
next one…
Cover all ratios
under efficiency,
liquidity, capital
structure in a similar
format showing
detailed working
and final answers