7/23/2019 4.6 Week 4 Peer Assessment

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Please read and follow these instructions carefully. Make sure you understand what you have todo before attempting to complete this assignment. You will need to do some work on the datasupplied here, outside of this window before coming back and entering your answers.You cansave your work as you go (save button at the bottom of this page), and come back and add moreanswers later, as long as it is submitted before the closing date of 2!"!2#$% at "pm Melbourne

time (&'$#). *nsure you submit your final answers for grading (button at the bottom of thepage).

Instructions

'here are three (+) parts to this assignment worth 2# points in total. You will need to complete allthree parts.

Part one: Ratio computations(9 points) &se the data supplied below to complete thesecalculations and then enter them in the -ui link below (Part /ne).

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Part two: Ratio analysis (10 points total)to be completed here in the peer assessment after youhave done your calculations in part one.

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Part three:NPV calculation(1 point) Calculate the NPV of the project supplied and thenchoose the closest answer to your answer in the -ui link below (Part /ne).

Data: 3oth parts of this assignment are based on the supplied financial e4tracts from 5ellogg6sfinancial statements in 2#$2 and 2#$$ use all of the data below in your assignment, or youcan download this P7 fileand use it as a reference while you do the assignment if you want towork offline.

You can alsodownload an *4cel spreadsheetwith the data. 'he data in both the P7 the *4celspreadsheet are the same as the data presented below. 8e are giving it to you in three formats, asan option so you can work with the data the way you want to. You can use one or all three datasources.

'he data presented below are financial e4tracts from 5ellogg6s financial statements in 2#$2 and2#$$.

Statement of prot and loss

(millions, e4cept per share data) 202 20Net sales 9 $:,$; 9 $+,$nterest overage Catio

/fficiency easures ,i*uidity easures

'otal 0sset 'urnoverCeceivables 'urnover0verage ollection Period (days)>nventory 'urnoverays in >nventory

urrent CatioDuick Catioash Catio

Part #!o: Ratio anal$sis (0 points)

+omment and interpreton how the 20) ratios and measuresdiffer fromthe 202 ratiosand measures you calculatefor each -uestion. Make your comments brief (no more than $##words for each comment). *nter your comments in the fields below for each section for thefollowing areasA

Profitability Catios $

Profitability Catios 2

@everage Measures

*fficiency Measures

@i-uidity Measures

>f a certain ratio has changed significantly, explain exactly what the change indicates aout thatparticular aspect of the usiness. >f it has gone down, is that a positive or negative signE8hy orwhy notE

https://class.coursera.org/financialanalysis-001/quizhttps://class.coursera.org/financialanalysis-001/quiz

7/23/2019 4.6 Week 4 Peer Assessment

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Part #hree: %P& calculation ( point)

onsider the following investment proposal for a "year proFect.

'he investment has an upfront cost of 9$,%##,###.

'he proposal is e4pected to generate cash inflows for " years according to the followingscheduleA

Year $A 9;%#,###G

Year 2A 9$,%##,###G

Year +A 92,###,###G

Year :A 9$,2%#,###G

Year %A 9$,###,###G

Year "A 9%##,###.

*ach year of operation you must also pay the cost of labour attached to the proFect H a cashoutflow of 9;%#,### per year.

You have estimated that the appropriate discount rate for the proFect is $$B per annum.

alculate the 1PI of the proFect and then select the answer closest to your 1PI calculation inthe -ui for part one of this assessment. (see link above in Part !ne).

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'omment and interpret on the Protailit$ Ratios in the teto elo!:

'omment and interpret on the Protailit$ Ratios 2 in the teto elo!:

'omment and interpret on the *e+era"e ,easures in the teto elo!:

'omment and interpret on the -.cienc$ ,easures in the teto elo!:

7/23/2019 4.6 Week 4 Peer Assessment

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'omment and interpret on the *i/uidit$ ,easures in the teto elo!: