Corporate Financial Accounting - PDF

RUNNING HEAD: Corporate Financial Accounting
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JB HI FI COMPANY
Corporate Accounting
JB Hi-FI Company
Name of the Author- Sagar Pokhrel
Student id- EMV 22235

Corporate Financial Accounting
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Table of Contents
Introduction........................................................................................................... 2
Answer to question-1................................................................................................... 2
Answer to question-2................................................................................................... 3
Comparative analysis of the all three main flow of activities.............................3
Answer to question no-3........................................................................................ 3
Answer to question no-4........................................................................................ 4
Answer to question no-5........................................................................................ 4
Answer to question no-6........................................................................................ 5
Answer to question no-7............................................................................................... 5
Explain, why this is with reason.............................................................................5
Answer to question no-8............................................................................................... 6
Answer to question no-9............................................................................................... 8
Income tax payment differ from the income tax payable...................................8
Answer to question no-10.............................................................................................. 9
Answer to question no-11.............................................................................................. 9
Conclusion........................................................................................................... 10
References........................................................................................................... 11
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Corporate Financial Accounting
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Introduction
This report emphasises upon the financial statement analysis, deferred tax payment
and the recording of the tax provisions of the JB Hi- Fi Company. With the ramified
economic changes, government has been changing the taxation rules and regulation
throughout the time to make the tax implication better and effective on the corporations. In
this report, JB Hi- Fi Company has been taken to prepare this report. This company has been
running its business on international level for selling electronic goods and services (JB HI-FI,
2017).
Answer to question-1
Analysis of the Cash flow statement
Cash flow statement is accompanied with the flow of cash in the business irrespective of the
fact whether it belongs to present year or not. The cash flow statement represents the flow of
cash in its three main activities named investing, financial, operating activities.
The non-cash items are being added in the operating activities which have increased to AUD
$ 191 million in 2017 which is AUD $ 34 million as compared to last five year data. It is
reflected that company has increased the depreciation amount and increased operating
expenses (JB HI-FI, 2017).
The cash outflow shown by company in its investing activities is AUD $ 886 million which
arise due to its cash payment to buy new machineries and assets (JB HI-FI, 2017).

Corporate Financial Accounting
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The financial activities of the JB Hi-Fi Company has shown the positive cash inflow of AUD
$ 396 in 2017 which is increased due to the investment made by the investors in buying the
capital of company.
The cash dividend paid by JB Hi-Fi company is AUD $ 119 million which is 10% higher as
compare to last year data.
After analysing all the details, it could be inferred that free cash flow of company has
increased to AUD $ 21 million since last five years. JB Hi-Fi Company has positive cash
inflow in its business which reflects the positive business outcomes in near future (Ho, 2017).
Answer to question-2
Comparative analysis of the all three main flow of activities
JB HI FI LTD (JBH) Statement of CASH FLOW
Fiscal year ends in June. AUD in millions
except per share data.
2017-
06
2016-
06
2015-
06
2014-
06
2013-
06
Net cash provided by operating activities 191 185 180 41 156
Net cash used for investing activities -886 -52 -44 -38 -38
Net cash provided by (used for) financing
activities 716 -131 -130 -28 -91
Free cash flow 142 133 137 5 121
The free cash flow is accompanied with the all the addition and subtraction of the
cash in the business due to the changes in the flow of operating activities. The free cash flow
of JB Hi-Fi Company is AUD 142 million which is too high and shows that company has
positive flow of capital in its business (Watson, 2017).
Answer to question no-3
There are several items have been recorded in the income statement of the JB Hi-Fi Company
such as revenue, cost of capital, gross profit, operating expenses and all the expense and
income which are recorded as revenue nature (Watson, 2017).