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Introduction to Accounting & Finance Assignment | JB Hi - Fi Ltd

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Added on  2019-11-08

Introduction to Accounting & Finance Assignment | JB Hi - Fi Ltd

   Added on 2019-11-08

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Running head: INTRODUCTION TO ACCOUNTING AND FINANCEIntroduction to accounting and financeName of the studentName of the universityAuthor note
Introduction to Accounting & Finance Assignment | JB Hi - Fi Ltd_1
1INTRODUCTION TO ACCOUNTING AND FINANCE Table of ContentsPart I – Introduction...................................................................................................................2Part II – Industry situation and company plans..........................................................................2Industry situation....................................................................................................................2Future plans of the company..................................................................................................3Part III – Financial statement analysis.......................................................................................3Statement of financial performance.......................................................................................3Statement of financial position...............................................................................................5Statement of cash flows.........................................................................................................6Part IV – Ratio analysis..............................................................................................................7Part V – Conclusion...................................................................................................................8Findings..................................................................................................................................8Recommendation....................................................................................................................8Decision and rational..............................................................................................................9Reference..................................................................................................................................10
Introduction to Accounting & Finance Assignment | JB Hi - Fi Ltd_2
2INTRODUCTION TO ACCOUNTING AND FINANCE Part I – Introduction JB Hi-Fi is the largest retailer for home entertainment that established in Australia.They are the market leader due to the competitive price, big brands and wide range ofproducts like headphones, iPads, wireless speakers, home theatre, mobile phones, laptops andtelevisions. The company identifies the significance of environmental, social and governancerelated matters towards the shareholders, customers and suppliers. Other details related to thecompany are as follows – Name of the CEO – Mr Richard Murray since 1st July 2014Home office – Chadstone, Australia Closing date of the latest fiscal year – 30th June 2017Primary service and products – the company is the speciality retailer for the productsrelated to home entertainment like headphones, iPads, wireless speakers, hometheatre, mobile phones, laptops and televisions.Primary geographic area of activity – Australia and New ZealandName of independent auditor – Deloitte Touche TohmatsuAuditor’s opinion on financial statement – as per the opinion of the independentauditor the financial report of the company is in compliance with Corporation act2001 and includes –The financial statement of the company presents the true and fair view of the financialposition of the company as on 30th June 2017 and the financial performance of thecompany for the year ended on the mentioned date (JB Hi-Fi | JB Hi-Fi - Australia'sLargest Home Entertainment Retailer, 2017)Complies with the AAS (Australian Accounting Standards) and CorporationRegulation act 2001.Most recent share price of the company - $ 23.37 as on 30th June 2017.Dividend per share – Final dividend as on 25th August 2017 – 46 centsInterim dividend as on 24th February 2017 – 72 cents
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3INTRODUCTION TO ACCOUNTING AND FINANCE Part II – Industry situation and company plansIndustry situationJB Hi-Fi Limited belongs to the retail industry in Australia and though the retailindustry is becoming stronger as compared to the past years. Retailing sector in Australiaincreased by 3% during 2016 with regard to the current value terms that is the growth linerecognized during the period. Though the growth is positive, it is slower as compared to theyear 2015 as the country became cautious regarding its discretionary spending owing to thelow growth in income (Post & Byron, 2015). Wesfarmers was the biggest retailer during2016 along with it being the leader over all the multiple categories for retailing. Their valuegrowth was mainly driven by strong performance in home related products. Therefore, JB Hi-Fi will continue to have a strong competition with Wesfarmers during the current year as wellas in the future years. Further, retail industry in Australia is expected to grow at the value CAGR for 3% atconstant rate. This growth will mainly driven by the home entertainment, garden specialistand internet retailing that are expected to grow owing to the increase in demand for newhome related products and new technologies adoption. Future plans of the companyThe solution from JB Hi-Fi is the key driver for their success. They will continue withthe plan of aggressive recruitment along with the expansion of the services and products theyoffer. They are planning to set up the play in the integrating related products and the servicestowards the education sector, government and business sectors through the JB Hi-Fi solutionsarm. Further, it is expected to provide $ 500 million per year with regard to sales through thestrategic acquisitions and organic growth (Hunjra & Bashir, 2014). Moreover, the companyhas a plan to expand their store with regard to home branded to 75 from 43 outlets. Each newoutlet for JB Hi-Fi store contributes towards the growth of the customer awareness, suppliersupport and market share. As per the CEO, Mr Murray, in association with the ongoinginvestment towards the store wages, supply chain and staff training put the company in strongposition so that they can continue with the expansion.
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