Accounting Study Material: Assessing Total Value in Consolidated Financial Statements

Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
1. Assessing total value in the consolidated financial statements...............................................3
2. Determining normal balances for the above listed accounts...................................................3
PART B............................................................................................................................................4
1. Evaluating various type of revenues generated by the consolidated group............................4
2. Assessing how group assets are classified..............................................................................5
3. Determining number of ordinary shares held by JB Hi-Fi Limited in financial year. ...........5
4. Determining group’s current liability for dividends to ordinary shareholders.......................5
5. Dividend payout ratio..............................................................................................................5
PART C............................................................................................................................................6
1. List the subsidiary companies in the JB Hi-Fi Group.............................................................6
2. Determining the value of the group’s sales revenue...............................................................6
3. Determining the group’s final profit.......................................................................................6
4. Evaluating the percentage change in (2) and (3).....................................................................6
5. Determining the total value of inventories on hand................................................................7
6. Calculating profit margins and inventory turnover.................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Accounting is referred to as one of the appropriate process which is useful in
summarizing and interpreting various financial transactions of the company over a specific
period (Birt and et.al., 2019). Accounting helps in summarizing the operations of the company
by understanding its financial position. This study will demonstrate types of revenues which has
been generated within consolidated group. Furthermore, it also demonstrates various range of
questions associated with the JB Hi-Fi Limited.
JB Hi-Fi Limited is considered to be one of the publicly listed Australian retail company
which was founded in the year 1974 by John Barbuto. This company tends to sell various
consumer goods. JB Hi-Fi Limited is listed on the Australian Stock exchange and is also
headquartered in South bank, Melbourne, Australia.
PART A
1. Assessing total value in the consolidated financial statements.
PARTICULARS TOTAL VALUE ($m)
Cash and cash equivalents 72.0
Inventories 891.1
Sales revenue 6,854.3
Other income 1.1
Plant and Equipment 198.0
Interest Expense (16.6)
Sales and marketing expense (695.1)
Occupancy expenses (305.7)
Trade and other payables 665.3
Borrowings 469.4