|
Sr no.
|
Particulars
|
Amount
|
|
1
|
Cash and cash equivalents
|
72.8
|
|
2
|
Inventories
|
859.9
|
|
3
|
Sales revenue
|
562.8
|
|
4
|
Other income
|
2.0
|
|
5
|
Plant and Equipment
|
208.2
|
|
6
|
Interest Expense (finance costs)
|
10.7
|
|
7
|
Sales and marketing expense
|
580.1
|
|
8
|
Occupancy expenses
|
248.6
|
|
9
|
Trade and other payables
|
647.8
|
|
10
|
Borrowings (non-current)
|
558.8
|
|
Sr no.
|
Particulars
|
Normal Balance
|
Effect due to decrease
|
|
1
|
Cash and cash equivalents
|
23.5
|
DEBIT
|
|
2
|
Inventories
|
257.2
|
DEBIT
|
|
3
|
Sales revenue
|
4383.2
|
CREDIT
|
|
4
|
Other income
|
6.4
|
CREDIT
|
|
5
|
Plant and Equipment
|
35.2
|
DEBIT
|
|
6
|
Interest Expense (finance costs)
|
10.5
|
DEBIT
|
|
7
|
Sales and marketing expense
|
546.6
|
DEBIT
|
|
8
|
Occupancy expenses
|
183.5
|
DEBIT
|
|
9
|
Trade and other payables
|
322.6
|
CREDIT
|
|
10
|
Borrowings (non-current)
|
7.9
|
CREDIT
|
Part B
1 The different types of revenues generated by the consolidated group are through the sale of the goods and the services, commissions made by the group and rendering of the services to the clients and the customers. The current value of these types of the revenues is 5628 and the other income includes the amount of the 1230.5 (JB HI FI, 2018).
2 The group assets are classified as current assets and the non-current assets. The bifurcation of the assets is outlined below with respect to its current values (Frino, Hill and Chen, 2015).
|
BIFURCATION OF THE ASSETS
|
|
2017
|
|
Current assets
|
|
|
|
|
Cash and the Cash equivalents
|
72.8
|
|
Trade and other receivables
|
|
196.6
|
|
Inventories
|
|
|
859.9
|
|
Other current assets
|
|
41.4
|
|
|
|
|
|
1170.7
|
|
Non-current assets
|
|
|
|
|
Plant and Equipment
|
|
208.2
|
|
Differed tax Assets
|
|
|
-
|
|
Intangible assets
|
|
|
1026.6
|
|
Other non-current assets
|
|
46.8
|
|
|
|
|
|
1281.6
|
|
|
|
|
|
|
The major categories that are listed among the group’s equity are as follows. The ordinary shares of the JB hi-fi Limited at the end of the financial year are $105572 which is fully paid ordinary shares and the executive share options $322105.
|
Shareholders’ Equity
|
Amount
|
|
Contributed Equity
|
|
438.7
|
|
Reserves
|
|
|
33.2
|
|
Retained Earnings
|
|
381.6
|
|
|
|
|
|
|
Total Shareholders’ Equity
|
853.5
|
|
|
|
|
|
A The current liability of the group is 885.8.
B The final dividend declared by the JB Hi fi is 118 cents per share amongst which the fully franked dividend is 46 cents per share. Therefore if only 100 shares of ordinary nature are owned in the JB HI FI Limited than the amount of the dividend will be 46 cents per share (JB HI FI, 2018).
C If the amount of the interim dividend is added to the current year’s dividend per share the total amount of the dividend is summation of (63+46) which equals to 109 per share (CHEN, 2017).
D The last year dividend which is paid in the current year period is 72 per share (CHEN, 2017).
E The dividend per share of the JB HI FI is 46 per share and the earnings per share of the company are given below. The earnings per share ratio gauges how profitable the company is per share of the stock and the dividend per share determines the amount of the dividends received per share basis (JB HI FI, 2018).
|
Earnings per share
|
|
|
2017
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
172.4
|
|
Weighted Average Equity shareholders
|
619.75
|
|
|
|
|
|
0.28
|
|
|
|
|
|
|
|
Dividend Pay-out Ratio
|
2017
|
|
|
|
|
|
|
Dividends
|
|
|
46
|
|
Net Income
|
|
172.4
|
|
|
|
|
|
|
|
|
|
27%
|
|
|
|
|
|
Part C
1 The subsidiary company of the JB HI FI Group is The good guys.
2 The value of the group sales revenue for the current and the previous year is outlines below.
|
Sales Value
|
2016
|
2017
|
% change
|
|
|
|
3.95
|
5.63
|
43%
|
|
|
|
|
|
|
The value of the group’s final profit revenue for the current and the previous year is outlines below.
|
Final Profit
|
2016
|
2017
|
% change
|
|
|
|
152.2
|
172.4
|
13%
|
|
|
|
|
|
|
After analysing the comparison the final profit of the company has increased only because of the revenue increased from 3.95 to 5.63 in the year 2017. The percentage change of the 43% in the change of the revenue is because the JB HI FI is engaged in innovation and the diversification of the products and this approach provides the opportunities for the company to increase the revenues and the profits. The company has also increased the volume of sales through the opening up of the stores (Vasarhelyi, Kogan and Tuttle, 2015).
5 The inventories of the financial year of 2016 and the year 2017 are presented below.
|
Inventories
|
2016
|
2017
|
% change
|
|
|
|
546.4
|
859.9
|
57%
|
|
|
|
|
|
|
The percentage change in the value of the inventories is 57% and the same has been reported due to the purchase of the more goods and the products. Moreover the higher bunch of the inventory indicates the out flow of the cash and hence the company needs to sell out the stock more which will not only improve the revenue but also enhance the productivity of the organisation (Mainini, and Moretto, 2017).
6 The profit margin ratio of the JB hi fi company is 31% and the return on equity is 41% which is a major crystal of the company and hence the company is performing outstandingly (Joshi, 2015).
|
Profit margin ratio
|
|
2017
|
|
|
Net profit
|
|
17240000
|
|
|
|
Sales
|
|
56300000
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turnover ratio
|
|
|
|
Inventory * 365
|
8599000
|
55.7484
|
|
|
Sales
|
|
56300000
|
|
|
|
|
|
|
|
|
|
Profitability ratios
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
Profit margin ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit
|
|
|
11640000
|
35%
|
|
|
Sales
|
|
|
33100000
|
|
|
|
|
|
|
|
|
|
|
Return on Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income - Dividends
|
11640000
|
41%
|
|
|
Shareholders’ Equity
|
28090000
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
References
Benson, P., (2014) Sharing is caring. Electrical Connection, (Autumn 2014), p.132.
CHEN, Y., (2017) Estimation of Stock Price: A Case Study of JB Hi-Fi Limited. DEStech Transactions on Social Science, Education and Human Science, (msie). pp. 36-42.
Frino, A., Hill, A. and Chen, Z., (2015) Introduction to corporate finance. London: Pearson Higher Education AU.
JB HI FI, (2018) Annual report
Joshi, M., (2015) Divergence between Operating Profit and EBIT. United States: John Wiley & sons
Mainini, A. and Moretto, E., (2017) Extending Yagil exchange ratio determination model to the case of stochastic dividends. New York: Springer
Vasarhelyi, M.A., Kogan, A. and Tuttle, B.M., (2015) Big Data in accounting: An overview. Accounting Horizons, 29(2), pp.381-396.
