I only need part B questions to solve it please. Our case is based on JB HiFi Company I did include the attached file. When you finish the assignment. I would like to get two files as a solution (one is excel and one is as word) please
Microsoft Word - 2018 SP6 Assignment 2 - ACC81210 ACC81210 Accounting for Managers, Assignment 2, SP6 2018 Page 1 of 2 ACC81210 (Accounting for Managers) SP6, 2018 ASSIGNMENT 2 (30 MARKS) Part A (10 marks) 1. Calculate depreciation expense for each of the following asset groups for the year ended 30 June 2018 (5 marks) Asset Delivery trucks Office equipment Computers Building Acquisition cost $135,000 $27,000 $18,200 $315,000 Useful life/units (km for trucks, years for the rest) 200,000 10 4 30 Estimated residual value $45,000 $3,000 $1,000 $45,000 Depreciation method Units of production# Straight-line Reducing- balance* Straight-line Depreciation expense $ $ $ $ # The trucks were driven 34,500 km during the year * The company uses an approximated reducing-balance rate of 60%. One year of depreciation has been recorded prior to the current year. 2. GoGo is a gas supplier. On 1 July, the business had 400,000 cubic metres of gas in stock at a cost of 15 cents per cubic metre, a total cost of $60,000. During the first week in July the business purchased the following amounts of gas: July Cubic metres Cost per cubic metre 2 48,000 18 cents 4 30,000 20 cents 5 20,000 22 cents On 7 July the business sold 450,000 cubic metres of gas to a local energy company. Calculate: a) the cost of goods sold based on perpetual inventory and FIFO cost allocation. (2 marks) b) the closing inventory based on periodic inventory and weighted average cost allocation. (3 marks) ACC81210 Accounting for Managers, Assignment 2, SP6 2018 Page 2 of 2 Part B (20 marks) In gradebook you will see a section “Company number” with a number between 1 and 3. This is the number of the company that you are allocated for this assignment. 1. JB Hi Fi Ltd (JBH) http://www.jbhifi.com.au 2. Wesfarmers Ltd (WES) http://www.wesfarmers.com.au 3. Woolworths Ltd (WOW) http://www.woolworthsgroup.com.au Required: A. Access the annual reports for your allocated company for the years 2014, 2016 & 2018 in the Assessment folder of Blackboard. You should only use the figures from the annual reports provided - do not access your reports or figures from any other source. B. These annual reports will provide you with six years of financial statements for 2013, 2014, 2015, 2016, 2017 & 2018. C. Calculate the following ratios for the five years 2014 - 2018 (2013 financial information will assist you in calculating averages, where necessary). Most ratios are available in the textbook - and a reference is given for those that are not in the text. 1. Return on total assets (available on PERCI) 2. Rate of return on ordinary equity 3. Operating profit margin 4. Gross profit Margin 5. Inventories turnover period 6. Settlement period for debtors 7. Current ratio 8. Quick ratio (acid test ratio) 9. Debt to assets ratio (available on PERCI) 10. Interest cover ratio (Times interest earned) 11. Assets turnover (available on PERCI) 12. Earnings per share 13. Price-earnings ratio (refer to Blackboard for stock price history for five years). 14. Dividend yield (refer to Blackboard for the dividend history for five years). In each of the ratios, you should firstly write out the ratio formula that you used and then show the numbers that you used to calculate your answer, before showing your answer. Your answer should be in a format that indicates whether it is in %, times, ratio or days and to two decimal places. (3.5 marks) D. Given the ratios over five years, comment on the company’s profitability, efficiency, liquidity, financial gearing and investment ratios. Approximately 1,000 words. Note: You should also refer to coverage in the financial press that is related to your company. This will help you in evaluation of the company - please cite your sources! (8 marks) E. Examine the Statements of Cash Flows of your company for the years 2017 and 2018. Discuss the changes in each of the cashflows from operating, investing and financing activities. From this report, what can you glean about the business' activities in each year? (Approximately 300 words) (5 marks) F. Using the answers you calculated in part C, enter your answers into the area provided in Blackboard in assessments before uploading your assignment in the assessments section. This portion of your assignment will be automatically graded, so it is very important that you follow the instructions outlined here and in Blackboard. (3.5 marks) ANNUAL REPORT 2016 916CRN3440_JB_Hi-Fi_Annual_Report_2016 - 1 - Cover_v2.indd 2 23/08/2016 2:55:50 PM F or p er so na l u se o nl y Financial Summary JB Hi-Fi Limited ABN 80 093 220 136 Sales $3.95b NPAT(i) $152.2m Stores EBIT $221.2m FINANCIAL PERFORMANCE 2012 2013 2014 2015 2016 Growth Sales $3.13b $3.31b $3.48b $3.65b $3.95b 8.3% EBIT $161.5m $177.8m $191.1m $200.9m $221.2m 10.1% NPAT(i) $104.6m $116.4m $128.4m $136.5m $152.2m 11.5% Earnings per share 105.9cps 117.7cps 128.4cps 137.9cps 153.8cps 11.5% Total dividend - fully franked 65.0cps 72.0cps 84.0cps 90.0cps 100.0cps 11.1% 2012 2013 2014 2015 2016 (i) Profi t attributable to the owners of JB Hi-Fi Limited, excludes non-controlling interests 2012 2013 2013 2015 2016 $3.31b $177.8m $3.13b $161.5m $3.48b $191.1m $3.65b $200.9m 2012 2013 2014 2015 2016 $116.4m $104.6m $128.4m $136.5m 2012 2013 2014 2015 2016 177 168 182 187 $3.95b $221.2m $152.2m 194 916CRN3440_JB_Hi-Fi_Annual_Report_2016 - 2 - Inside Cover_v3.indd 2 25/08/2016 2:26:24 PM F or p er so na l u se o nl y 1 Dear fellow shareholder, It is very pleasing to report that the year ended 30 June 2016 was another record year for JB Hi-Fi Limited with sales, profits and dividends all up on the prior year. This result was driven by a combination of sales growth, solid gross margins and our low cost of doing business, underpinned by our continued emphasis on customer service. Overview JB Hi-Fi Limited achieved sales of $3.95 billion in FY16, with total sales growth of 8.3% and comparable sales growth of 5.4%. Sales momentum was solid throughout the year. Particularly pleasing was how we cycled strong June sales from the prior year, with strong sales driven by tax time buying. Net profit after tax was up 11.5% to $152.2m, earnings per share was up 11.5% to 153.8 cents per share and the total dividend for FY16 was up 10 cents per share on the prior year to 100 cents per share. Gross profit increased 8.4%, with gross margin improving three basis points to 21.9%, which was pleasing given the change in sales mix. Total operating costs remained well controlled and were in line with our expectations. We maintained our low CODB through continued focus on productivity and minimising indirect expenditure. Our low cost of doing business, at 15.2%, continues to be a competitive advantage and remains lower than our major listed competitors. Store wages remained well controlled during FY16 as we continued to deliver the high standard of customer service that JB Hi-Fi is known for. The balance sheet continues to grow in strength with relatively low financial and operating leverage, evidenced by our solid fixed charges cover of 3.5 times, gearing of 0.4 and interest cover of 57.3 times. JB Hi-Fi is a discount retailer with the ability to consistently offer everyday low prices through the scale of our operations, high stock turnover and low cost of doing business. We offer one of the largest ranges of home entertainment, consumer electronic and home appliances at discounted prices, positioned to appeal to all customers. JB Hi-Fi has the ability to bring brands to life and create engagement in categories. We have the reputation for taking the deal, price leadership and being first to market with the latest technology. We have a high level of loyalty and trust from our customers and have been recognised in the top three in the Australian Market Research (“AMR”) Corporate Reputation Index over the past five years, and the number one company