Financial Reporting Problem: Domino’s Pizza Enterprises Ltd

PRINCIPLES OF ACCOUNTING
Question 2 (15 marks)
FINANCIAL REPORTING PROBLEM: Domino’s Pizza Enterprises Ltd
Refer to the financial statements of Domino’s presented in the link below.
http://www.annualreports.com/HostedData/AnnualReportArchive/d/ASX_DMP_2013.pdf
Required
Answer these questions:
a. What was the amount of net cash provided by operating activities for 2013 and 2012?
b. What was the amount of increase or decrease in cash for 2012 and 2013?
c. From your analysis of the 2013 cash flow statement, what was the amount of the change in borrowings
and was it a decrease or an increase?
d. What was the total (net) cash used for investing activities for 2013?
e. What was the amount of interest paid in 2013? What was the amount of income tax paid in 2013?

Student Answer:
a) The cash flow generated from operations for year 2013 and 2012 was $ 33,180,000 and $ 37,678,000
respectively. This is indicated from the following screenshot.
b) The cash balances reported for ending of FY2012 and FY2013 were $ 18,691,000 and $ 40,340,000
respectively. This is indicated from the following screenshot.
Clearly there has been a decrease in the cash in 2013.
Decrease in cash in 2013 = 40,340,000 – 18,691,000 = $ 21,649,000
c) In 2013, there has been an increase in thee borrowings which is apparent from the following relevant
screenshot of cash flows from financing activities.
Net increase in borrowing in 2013 = $ 43,721,000 - $ 20,506,000 = $23,215,000
d) Net cash used in investing activities in 2013 amounted to $ 30,395,000.This is apparent from the
following screenshot.

e) The interest paid in 2013 was $405,000. Amount of income tax paid in 2013 was $11,796,000. Thee
relevant screenshot is highlighted below.