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Individual Assignment
Unit: TACC101 Accounting 1A
Due Date: 5pm Friday, 28 September 2018
Total Marks: XXXXXXXXXXmarks (20%)
Number of Questions: 3 Parts
Instructions: All questions should be attempted.
The marks of each question would be awarded based on your
understanding of the questions, concepts and procedures; hence
you should demonstrate your answers step by step.
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PLEASE READ THIS DOCUMENT CAREFULLY BEFORE YOU BEGIN, SO YOU
DO NOT LOSE MARKS.
INSTRUCTIONS TO FOLLOW:
• Any list of the references actually cited must be included in your assignment paper.
• Font type should be Times New Roman (size 12), paragraph spacing should be equal
to 1.5.
Marks:
The assignment is worth 20% of the total mark for the unit. The marks awarded will depend
on the quality of the reasoning exhibited and the ability to express the argument in a concise
manner.
Due date:
The assignment must be submitted on or before 5pm Friday, 28 September 2018. Late
assignments will be accepted up to 72 hours after the submission deadline. There will be a
deduction of 20% of the total available marks made from the total awarded mark for each 24
hour period or part thereof that the submission is late (for example, 25 hours late means a
40% penalty).
HOW TO SUBMIT YOUR ASSIGNMENT
No hard copy is required
You MUST submit an electronic copy through TURNITIN on Moodle for checking
plagiarism. Failure to submit it may result in a zero mark for the entire assessment.
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Part A (20 marks)
Refer to the 2017 annual report of JB Hi-Fi Limited on its website, www.jbhifi.com.au 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
• Bo
owings (non-cu
ent)
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 (40 marks)
Refer to the 2017 annual report of JB Hi-Fi Limited on its website, www.jbhifi.com.au 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 cu
ent 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 cu
ent year’s total amount of
dividend per share? What is the Last year’s final dividend paid in the cu
ent period?
5. How do the dividends per share compare with the group’s ‘earnings’ per share (use
asic earnings per share)? What is the dividend payout ratio for cu
ent year?
http:
www.jbhifi.com.au
http:
www.jbhifi.com.au
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Part C (40 marks)
Refer to the 2017 annual report of JB Hi-Fi Limited on its website, www.jbhifi.com.au 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 cu
ent and previous years?
What has been the percentage change in sales revenue for the cu
ent year?
3. What is the group’s final profit (after income tax) for the cu
ent and previous years?
What has been the percentage change in profit (after income tax) for the cu
ent 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 cu
ent 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.
END OF THE ASSIGNMENT.
http:
www.jbhifi.com.au
ANNUAL REPORT
2017
916CRN4225_JB_Hi-Fi_Annual_Report_ XXXXXXXXXXCover_v1.indd 2 18/08/ XXXXXXXXXX:03:12 PM
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Financial Summary
JB Hi-Fi Limited ABN XXXXXXXXXX
Sales $5.63
NPAT(ii) $207.7m Stores
EBIT $306.3m
FINANCIAL PERFORMANCE
2013
Statutory
2014
Statutory
2015
Statutory
2016
Statutory
2017
Statutory
2017
Underlying(i)
Growth
Underlying(i)
Sales $3.31b $3.48b $3.65b $3.95b $5.63b $5.63b 42.3%
EBIT $177.8m $191.1m $200.9m $221.2m $268.2m $306.3m 38.5%
NPAT(ii) $116.4m $128.4m $136.5m $152.2m $172.4m $207.7m 36.5%
Earnings per share 117.7cps 128.4cps 137.9cps 153.8cps 154.3cps 186.0cps 22.4%
Total dividend - fully franked 72.0cps 84.0cps 90.0cps 100.0cps 118cps 118cps 18.0%
(i) Underlying results exclude transaction fees and implementation costs totalling $22.4m associated with the acquisition of The Good Guys in
November 2016 and $15.8m of fi xed asset and goodwill impairments in New Zealand.
(ii) Profi t attributable to the owners of JB Hi-Fi Limited, excludes non-controlling interests.
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
$3.31
$177.8m
$3.48
$191.1m
$200.9m
$5.63
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
177 182
187
303
$116.4m
$128.4m
$136.5m
$3.65
$3.95
$152.2m
194
$221.2m
$306.3m(i)
$207.7m(i)
JB Hi-Fi acquired The Good Guys on 28 November 2016, all amounts disclosed for the 2017 fi nancial year include The Good Guys
for the period under JB Hi-Fi ownership.
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Dear fellow shareholder,
2017 has been a great year for JB Hi-Fi Limited. It is very
pleasing to report that the year ended 30 June 2017 was
another record year with sales, profits and dividends all up
on the prior year and in November 2016 we successfully
completed the purchase of The Good Guys. The 2017 result
was driven by a combination of sales growth, a continued
focus on growth in gross profit dollars and our low cost of
doing business, underpinned by our ongoing emphasis on
customer service.
Overview
JB Hi-Fi Limited and its subsidiaries (the “Group”) achieved sales
of $5.6 billion, up 42.3% on the prior year. Group underlying
EBIT was up 38.5% on the prior year to $306.3 million.
Group underlying NPAT was up 36.5% to $207.7 million and
Statutory NPAT was up 13.3% to $172.4 million. Earnings per
share was up 22.4% to 186.0 cents per share and the total
dividend for FY17 was up 18 cents per share on the prior yea
to 118 cents per share.
JB Hi-Fi Australia
JB Hi-Fi Australia total sales grew 10.9% to $4.15 billion,
with comparable sales up 8.6%. Online sales grew 38.4% to
$158.9 million or 3.8% of total sales, reflecting continuous
improvement across many aspects of the business’s digital
assets. JB Hi-Fi Solutions continued to grow and remains on
track to deliver on its longer term aspirational sales target of
approximately $500 million per annum.
Gross profit increased by 11.7% to $922.8 million resulting in
a gross margin of 22.2%. CODB was 15.0%, down 21 bps
on the prior year. Total operating costs were in line with our
expectations and remained well controlled as the business
continued to deliver the high standard of customer service that
JB Hi-Fi is known for. The business’s low CODB remains a
competitive advantage and is maintained through continued
focus on productivity and minimising unnecessary expenditure.
Strong sales growth, combined with operating cost leverage,
drove strong earnings growth. EBIT was up 19.1% on the prior
year to $262.4 million while EBIT margin was up 43 bps at 6.3%.
JB Hi-Fi New Zealand
Total sales were down 0.3% to NZD234.0 million, with
comparable sales down 8.8%. Sales in the prior year were aided
y market wide demand for third party content cards. Excluding
the impact of these cards (NZD8.4m), total sales in New Zealand
were up 3.4%, with comparable sales down 5.3%.
Online sales in New Zealand for FY17 grew 5.3% to
NZD4.9 million or 2.1% of total sales. We have recently
launched a new website and are pleased with its performance
to date.
In light of the challenging recent financial performance in
New Zealand, fixed asset and goodwill impairments totalling
AUD15.8 million were recorded in the statutory FY17 results.
This was a non-cash adjustment.
We have completed a review of the New Zealand business and
are finalising a two year strategy to improve performance.
The Good Guys
The Good Guys was acquired on 28 November 2016. For the
period under JB Hi-Fi ownership, total sales were up 0.2% to
$1.26 billion with comparable sales down 1.3%. Online sales
were $64.4 million or 5.1% of total sales. Total operating costs
were in line with expectations and store wages remained well
controlled. Similar to the JB Hi-Fi business, the low CODB
emains a competitive advantage and will continue to be a
focus moving forward. Earnings for the period under JB Hi-Fi
ownership of $46.4 million were pleasing and in line with the
prior year.
Te
y Smart was appointed Managing Director of The Good
Guys in April 2017. Since Te
y’s appointment we have made a
number of positive changes in both the stores and at support
office to position the business for future growth.
Stores
We had 303 stores in Australia and New Zealand at
30 June 2017. In Australia, six new JB Hi-Fi stores were
opened and in New Zealand one new JB Hi-Fi store was
opened. On acquisition of The Good Guys, we acquired 103
stores. Since acquisition, one new The Good Guys store has
een opened and two closed. There were 102 The Good Guys