The statement of profit or loss for JB Hi-Fi Ltd for the financial year ended 30 June 2015 was provided in figure 6.2. It reports that JB Hi-Fi Ltd has increased its gross profit from $756.0 million in 2014 to $798.3 million in 2015. Its profit for 2015 is $136.5 million compared to $128.4 million in 2014. The financial performance allows a manager to assess previous decisions and inform future decisions. Hypothesise as to the reasons or business decisions contributing to the increase in the gross profit in 2015. Assess why the profit in 2015 is higher than in 2014.

Figure 6.2

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Revenue Cost of sales JB Hi-Fi Ltd Statement of profit or loss for the financial year ended 30 June 2015 Gross profit Other income Sales and marketing expenses Occupancy expenses Administrative expenses Other expenses Finance costs Profit before tax Income tax expense Profit for the year Attributable to: Owners of the Company Non-controlling interests Earnings per share Basic (cents per share) Diluted (cents per share) FIGURE 6.2 JB Hi-Fi Ltd statements of profit or loss Note 3 4 5 Note 23 23 2015 $'000 Consolidated 3652 136 (2 853 883) 798 253 631 (374 084) (160216) (27711) (35414) (5 927) 195 532 (59 021) 136511 2015 $'000 136511 - 136511 2014 $'000 137.91 136.46 3483 775 (2 727 794) Consolidated 755 981 520 (355 694) (148 969) (27 600) (32 716) (8 845) 182 677 (54 230) 128 447 2014 $'000 128359 88 128447 128.39 126.89