Analysing financial statements

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Analysing Financial Statements (D519)

Assessment Answer Template

Assessment summary

| |Assessor to complete |
|Assessment result |Competent / Not yet competent ||Questions that need to be resubmitted | |
| |Assessor to complete |
|Assessment question 1: |Demonstrated / Not yetdemonstrated |
|Assessment question 2: |Demonstrated / Not yet demonstrated |
|Assessment question 3: |Demonstrated / Not yet demonstrated |
|Assessment question 4:|Demonstrated / Not yet demonstrated |
|Assessment question 5: |Demonstrated / Not yet demonstrated |
|Assessment question 6: |Demonstrated / Not yet demonstrated |

Assessor feedbackSummary of feedback:

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Elements of competence/performance criteria not yet achieved (if applicable):

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| |Assessor to complete|
|Assessment result |Competent / Not yet competent |
|Resubmit |Yes / No |

Question 1

(a)

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$1,828,564 – $1,281,837 = $546,727($546,727 / $1,281,837) * 100 = 42.6%

This is a large increase because represents about half of the revenue of the year 2007.

(b)

(i)

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$65,085 – $41,376 = $23,709

($23,709 / $41,376) * 100 = $57.3%

(ii)

The increase in profit is higher by 14.6 basic points than the increase in revenue. The expenses (sales and marketing, occupancy, administration, finance and other)increased is about 35.9% from one year to another compare with the increase of revenue of 42.6%, because JB Hi-Fi incurred in the same fixed overheads like the rent of the stores, whether or not they sell 1 or 100 of them products, if there is less fixed overheads to apportion over the units sold there will be an increase in profit for the year.

(c)

The amount of tax payable is determinedby the tax laws as a percentage of the taxable profits.

The taxable profit increased by about 58.2% so in a similar way was the increase in the Income tax expense of about 60.3%.

(d)

(i)

The segment information shows the different segments in which the company has operations. One of them is the business segment which describes that JB Hi-Fi operates in just one segment which is the...
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