Corporate Accounting: Analysis of Cash Flows, OCI Statement, and Income Tax Expense of JB Hi-Fi

CORPORATE ACCOUNTING
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The company listed on ASX chosen for this particular task is JB HI-FI. The latest annual
report and corresponding financial statements are available for the year ending on June 30,
2017.
CASH FLOWS STATEMENT
(i) The relevant extracts pertaining to the cash flow from operations for the company are
highlighted as shown below (JB Hi-Fi, 2017).
Based on the above extract, the key items have been described as follows (JB Hi-Fi, 2017).
 “Receipts are customers”– This would indicate the monies that have been received
from the consumers during the year by selling the underlying products. It is essential
to differentiate between revenue and the customer receipts since the former is accrual
in nature and identified in the income statement unlike the latter which is based on
cash and hence represented in the cash flow statement. Considering the company has
acquired a business, hence the operational cash flows have enhanced in excess of 40%
in FY2017 over the previous year.
 “Payments to suppliers and employees” – The company in order to continue with the
business needs support from suppliers and employees. This item captures the cash
amount that is paid to the suppliers and employees during the given year. Any future
provisions with regards to employee benefit would not be visible here. The
acquisition of the new business has led to significant increase not only in customer
receipts but also corresponding payments.
The relevant extracts pertaining to the cash flow from investment for the company are
highlighted as shown below (JB Hi-Fi, 2017).

Based on the above extract, the key items have been described as follows (JB Hi-Fi, 2017).
 “Payment for business combination” – This amount in cash has been spent by the
company for business acquisition. In case of the most recent year i.e. FY2017,
business has been acquired by the company for a consideration amount of $ 836.6
million.
 “Payments for plant and equipment” – This amount in cash has been spent by the
company for plant and equipment acquisition. In case of the most recent year i.e.
FY2017, plant and equipment has been acquired by the company for a consideration
amount of $ 49.1 million which does not indicate a major change over the previous
year.
 “Proceeds from sale of plant and equipment” – This amount in cash has been obtained
by the company for plant and equipment disposal. In case of the most recent year i.e.
FY2017, this amount is $0.2 million which is quite nominal in comparison to the size
of the total cash flows from investment.
The relevant extracts pertaining to the cash flow from financing for the company are
highlighted as shown below (JB Hi-Fi, 2017).
Based on the above extract, the key items have been described as follows (JB Hi-Fi, 2017).
 “Proceeds from issues of shares” – This amount in cash has been received from the
issue of shares for the given year. In case of the most recent year i.e. FY2017, this
amount is $ 395.9 million which is significant higher than the corresponding amount
for FY2016 that stood at $ 6 million.