Refer to the consolidated financial statements and notes in

Refer to the consolidated financial statements and notes in the 2017 financial report of Wesfarmers on its website, http://www.wesfarmers.com.au/docs/default-source/reports/j000901-ar17_interactive_final.pdf?sfvrsn=4 and answer the following questions

1.How much cash has been raised by interest-bearing loans in the most recent financial year? How much of such loans has been repaid? How do these amounts compare with the previous year?

2. Determine whether any of the non-current liabilities are secured.

3. Are there any non-current provisions? If so, what, in very general terms, do these represent?

Solution

1.Cash raised by interest-bearing loans in the most recent financial year Fig. in $ m Comparison with Previous Year 6/30/2017 6/30/2016 i.Proceeds from borrowings 220 2,360 ii.Such loans has been repaid Repayment of borrowings -1,994 -1,424 Amount raised in currrent year($ 220 m ) is less than the previous year($ 2360 m) Amount repaid in current year ($ 1994 m) is more than the previous year($ 1424 m) 2. Determine whether any of the non-current liabilities are secured. Schedule 14. Interest-bearing loans and borrowings Consolidated 6/30/2017 6/30/2016 $ m $ m Unsecured Current Bank Debt 378 1132 Capital Market Debt 969 500 1347 1632 Non-Current Unsecured Bank Debt 863 1450 Capital Market Debt 3203 4221 4066 5671 Total Interest -bearing loans & borrowings 5413 7303 So, as per Schedule 14 of Notes to the financial statements ,there are no secured non-current liabilities. 3…. Consolidated 6/30/2017 6/30/2016 $ m $ m Non-current liabilities: Provisions 1,511 1,554 Yes. There are provisions in non-current liabilities --- they represent employee benefits,wages& salaries,lesae provisions,off-market contracts ,self-insured risks.