1006GBS Why Money Matters Assessment 2: Financial Decision-Making – Take-Home Assignment

1006GBS Why Money Matters

Trimester 2, 2025

Assessment 2: Financial Decision-Making – Take-Home

Weighting: 40 marks (40% of total course assessment)

Due: 11.30 pm, Friday, 29 August 2025 (Week 8)

Reference materials:

• 2024 Annual Report – pages 64 and 65

• 2023 Annual Report – pages 66 and 67

Financial year covered: 1 July 2023 to 30 June 2024

Task

You are an intern financial analyst. Referring to Universal Store Holdings Ltd’s (UNI.AX) 2023 and 2024 Annual Reports (provided in the file UNI_2024_Annual_Report.pdf), you are to prepare a report evaluating the company’s financial performance from multiple perspectives by answering the following questions.

Notes on completing your – read these carefully:

• At the start of your, include your name (Surname, Given Name) and your student number.

• Adhere to the specified word limits for each question.

• Use your own words when presenting information from the provided annual report – do not copy and paste directly.

• Submit your as a PDF.

• Keep a copy (digital or hard copy) of your submission in case resubmission is required.

• Keep all calculation answers to two decimal places.

• This is an individual assessment – collaboration or plagiarism will result in a zero mark.

Questions

1) State the full name of the Chairman and the CEO of Universal Store Holdings Ltd (UNI.AX).

As reported in the 2024 Annual Report, what was the CEO’s total remuneration package for the 2024 financial year?

In which business sector of the economy does UNI.AX operate? Explain your reasoning. (100 words max, 3 marks)

2) Describe the purpose of: 1. The income statement 2. The balance sheet Which accounting elements appear in each?

How are the balance sheet and the income statement linked? (100 words max, 3 marks)

3) When was UNI.AX incorporated? Is it privately held or publicly listed?

What was the date of its IPO on the ASX?

At what price were shares sold in the primary market and how much capital was raised?

Whatwas the closing price on the first day of trading?

What total return would an investor have earned by 31 July 2025 if they purchased at the IPO? (100 words max, 3 marks)

4a) Suppose a country’s inflation rate, instead of averaging 2–3% p.a., recorded quarterly increases of 6.1%, 7.3%, 7.0% and 6.1% over a year.

How might the central bank respond when setting monetary policy?

Using a correctly labelled money demand and money supply diagram, explain the open market operation process undertaken to implement such a policy.

Further, explain how this policy would likely impact a company such as Universal Store Holdings, as well as household consumption, business investment, aggregate demand, GDP, unemployment and prices. (250 words max, 5 marks)

4b) What is the current monetary policy stance in Australia? (2.5 marks)

5) Calculate the gross profit margin, operating profit margin and net profit margin for UNI.AX in 2022, 2023 and 2024. (3 marks)

6) Based on your answer to Question 5, are the gross profit margin and operating margin changing in the same direction? Explain why or why not. (100 words max, 2 marks)

7) What were UNI.AX’s total sales and total cost of sales in 2022, 2023 and 2024? (50 words max, 1.5 marks)

8) Using your answers to Questions 5 and 7, conduct a horizontal analysis by calculating the percentage change from 2022 to 2024 for total sales, cost of sales, gross profit, operating profit and net profit. (200 words max, 3 marks)

9) Calculate the current ratio and quick ratio for UNI.AX in 2024. Comment on the results. (150 words max, 4 marks)

10) Calculate the debt-to-equity ratio of UNI.AX in 2024 and comment on the result, assuming the industry average is 0.5. (100 words max, 2 marks)

11) Calculate the ROE for UNI.AX in 2023 and 2024. (Total equity at 30 June 2022 was $111,509,000.) (50 words max, 2 marks)

12) Decompose the 2023 and 2024 ROE from Question 11 into ROA and equity multiplier. Comment on the results. (Total assets at 30 June 2022 were $203,553,000.) (150 words max, 4 marks)

13) Based on your analysis and research, what are your suggestions for the future operation of the company?(200 words max, 3 marks)