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Assessment 3
Business Financial Evaluation
ASSESSMENT 3 INSTRUCTIONS
The assessment will be in two parts:
Part A: Analysing financial statements using Power BI (asoftware application) and a financial discussion.
Part B: Evaluating and reporting on Iwi financial performance using the TDB Advisory Ltd Iwi Investment Report (2022).
How to approach this Assessment
. Please read all instructions before starting the assessment.
. Study the relevant material in the textbook and other study material and make sure you understand the concepts covered.
Before attempting Part A of the Assessment 3
1. Download Power BI Desktop OR access Power BI through Massey’s Flexible Learning environment as discussed on the following page.
2. Download the following file from Stream under the Assessment 3 files folder and save it on your device:
115.112 Data Assessment 3.xlsx
3. Access the material provided for Power BI training under the Assessment Resources section:
. Power BI Recording – a quick run through using the application.
. Data visualisation slides – useful resource for requirement (ii) and (iii) .
. ‘ How to access Flexible Learning environment from anywhere’ for students that are not Microsoft users.
4. Attempt Part A.
5. You can attempt Part A without the training material if you have prior knowledge of the Power BI application.
Power BI Desktop Download for Microsoft users
Part A of this assessment requires you to complete tasks using Power BI Desktop (It is a free to use program). Please follow this link to download the program:
Power BI Download
Download the ‘Microsoft Power BI Desktop’ version as highlighted in purple below in the screen shot from the Microsoft website:
. After downloading and opening the application, you will be asked to log in. DO
NOT ATTEMPT TO LOG IN USING YOUR MASSEY CREDENTIALS OR ANY OTHER CREDENTIALS. You can use the application without logging in. Opt out of logging in, by closing the dialogue box.
. You are now ready to upload the Excel file (see point 2 on page 2).
Power BI Desktop usage for Non-Microsoft users (Apple etc.)
If you are unable to download Power BI Desktop to your computer, you can access the program by remotely accessing Massey’s Flexible Learning environment. You will find the complete instructions under the Assessment Resources section on the Stream site. The file is called, ‘How to access Flexible Learning environment from anywhere’ .
Submitting the Assessment files
. The assessment will result in 2 separate files; one Power BI file and one Word file.
. Submit both files in the provided submission point for Assessment 3.
. Follow the instructions “Submitting Assessments to Stream Assignment boxes” , which is available under the Assessment section on Stream. Stream records the submission date and time. See the Course Guide for policies re extensions and late submissions. Penalties will be applied to late submissions for which an extension has not been granted.
. Use the following naming convention for the files that you create: use your Last Name and Student ID number as the name of the file [Do not change the file extension or you (and the marker) will not be able to use the file]. For example, if your Last Name is Smith and your Student ID number is 88888888; your files will be Smith88888888.pbix and Smith88888888.docx.
. Once you have started working on an assessment you should make backups. It pays to rename different versions of your work. A simple way to do this is to use the Save as file instruction and add a number or letter to the end of the file name. (This allows you to go back to an earlier version.)
ASSESSMENT BRIEF
PART A - Financial Statements Evaluation:
You work as an investment advisor at a prestigious accountancy firm.You have recently acquired a new client, who has shown some interest in investing in the technology sector. The client confessed to have very little financial knowledge, and has asked you for advice.
Your assistant has downloaded the 2022 and 2023 financial statements of the largest technology companies and have compiled the relevant Statement of Financial Position (Balance Sheet) and Statement of Financial Performance (Income Statement) data in an Microsoft Excel spreadsheet. The file comprises of two (2) sheets, one for the 2022 financial data and one for the 2023 financial data.
To provide your client with comprehensive financial information, you calculate relevant ratios and prepare tables and graphs as visual presentation of the ratios in the Microsoft application, Power BI. You also prepare a simple discussion of the relevant ratios and what the ratios reveal about the companies.
Required:
In Power BI:
Upload the data from the provided Excel file, ‘ 115.112 Data Assessment 3.xlsx’ , and load the ‘2022’ and ‘2023’ sheets from this file. Use the information in the data sheets in Power BI to calculate the following ratios for the all the companies for 2023:
(See Appendix A for the formulas, p. 8. Use the amounts as they are provided. All amounts arepresented in NZ dollars.)
(i)
a) Profit Margin
b) Gross Profit Percentage
c) Return on Total Assets
d) Return on Owners’ Equity
e) Inventory Turnover
f) Sales % Increase
g) Number of Days in Selling Period
h) Accounts Receivable Turnover (Assume all sales are on credit)
i) Number of Days in Collection Period
j) Current Ratio
k) Quick Ratio
l) Debt Ratio
m) Interest Coverage
Tip: Use the ‘New Column’ function in the ‘Data view’ in Power BI to create a new calculated column for each of the ratios. (13 marks)
(ii) Present the 2023 ratios in relevant tables in your Power BI file to compare the
companies, in the ‘Report view’ . The tables have to express profitability, efficiency, liquidity and financial gearing appropriately. (16 marks)
(iii) Create appropriate graphs in your Power BI file for the 2023 ratios to compare the companies, in the ‘Report view’ . The graphs have to express profitability, efficiency, liquidity and financial gearing appropriately. (16 marks)
In a Word document:
(iv) Your client is particularly interested in company F’s performance. Write a simple discussion where-in you:
. Evaluate company F’s profitability by comparing the company’s 2023 results with its results for 2022.