Question -

Part A - Refer to the 2013 annual report of JB Hi-Fi Limited on its website, and answer the following questions:

1. What is the total value in the consolidated financial statements for each of the following items at the end of the year?

• Cash and cash equivalents
• Inventories
• Sales revenue
• Other income
• Plant and Equipment
• Interest Expense (finance costs)
• Sales and marketing expense
• Occupancy expenses
• Trade and other payables
• Borrowings (non-current)

2. What is the normal balance for each of the accounts listed above? What side of the account, debit or credit, is affected in order to decrease each item?

Part B - Refer to the 2013 annual report of JB Hi-Fi Limited on its website, and answer the following questions:

1. What are the different types of revenues generated by the consolidated group?

2. How are the group's assets classified?

3. What are the major categories listed among the group's equity? How many ordinary shares did JB Hi-Fi Limited have at the end of the financial year?

4. What is the group's current liability for dividends to ordinary shareholders? If you owned only 100 ordinary shares in JB Hi-Fi Limited, how much would you receive in dividends? If added the interim dividend, what is the current year's total amount of dividend per share? What is the Last year's final dividend paid in the current period?

5. How do the dividends per share compare with the group's 'earnings' per share (use basic earnings per share)? What is the dividend payout ratio for current year?

Part C - Refer to the 2013 annual report of JB Hi-Fi Limited on its website, and answer the following questions:

1. List the subsidiary companies in the JB Hi-Fi Group.

2. What is the value of the group's sales revenue for the current and previous years? What has been the percentage change in sales revenue for the current year?

3. What is the group's final profit (after income tax) for the current and previous years? What has been the percentage change in profit (after income tax) for the current year?

4. Compare the percentage change in (2) with the percentage change in (3). What information does this comparison provide?

5. What is the total value of inventories on hand for both current and previous years? What is the percentage change in inventory levels? How does this compare with the percentage change in sales revenue calculated in question (2)? Comment on any differences.

6. Calculate profit margin and inventory turnover, two profitability ratios for 2013.