Financial Statement Analysis (Income Statement and Balance Sheet/Statement of Financial Position) of Harvey Norman (the financial statements are provided below)

Question 1 (19 marks) Calculate the ratios for the years 2018 and 2019. Round all calculations to 2 decimal places

Ratio	2019	2018
ROE
ROA
Gross Profit Margin
Profit Margin
Asset turnover
Current Ratio	1.61	1.59
Quick Ratio	1.18	1.71
Debt Ratio

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STATEMENT of FINANCIAL POSITION as at 30 JUNE 2019 CONSOLIDATED June 2019 $000 June 2018 $000 Note Current Assets Cash and cash equivalents Trade and other receivables Other financial assets Inventories Other assets Intangible assets Subtotal Assets held for sale Total current assets 28(a) 7 8 9 10 215,048 741862 28,888 395,965 37,541 370 1,419,674 36.000 1.456,340 170,544 724,690 31.463 345,287 45,144 490 1,317,618 11 39 1.317,618 Non-Current Assets Trade and other receivables Investments accounted for using equity method Other financial assets Property, plant and equipment Investment properties Intangible assets Total non-current assets 12 37 13 14 49,391 3,854 19,370 096,207 2,508,951 84,631 3,342,404 78,443 4,497 18,283 660.337 2.429,397 69,067 3,260,024 15 16 Total Assets 4.798,744 4.577.642 17 18 Current Llabilities Trade and other payables Interest-bearing loans and borrowings Income tax payable Other liabilities Provisions Total current liabilities 283,682 494,579 12,000 75,819 33,028 899,108 289,986 422,191 15,608 66,825 35,354 829,964 20 Non-Current Liabilities Interest-bearing loans and borrowings Provisions Deferred income tax liabilities Other liabilities Total non-current liabilities 21 20 5(d) 23 346,942 13,025 330,546 11,330 701,843 503.203 11,645 280,735 14,163 809,746 Total Liabilities 1,600,951 1,639,710 NET ASSETS 3,197.793 2,937,932 Equity Contributed equity Reserves Retained profits Parent entity interests Non-controlling interests TOTAL EQUITY 24 25 26 552.250 217.724 2,397,436 3.167,410 30,383 3,197,793 388.381 185,384 2,337,241 2,911,006 26,926 2,937,932 27 The above Statement of Financial Position should be read in conjunction with the accompanying notes 60 STATEMENT of FINANCIAL POSITION as at 30 JUNE 2019 CONSOLIDATED June 2019 $000 June 2018 $000 Note Current Assets Cash and cash equivalents Trade and other receivables Other financial assets Inventories Other assets Intangible assets Subtotal Assets held for sale Total current assets 28(a) 7 8 9 10 215,048 741862 28,888 395,965 37,541 370 1,419,674 36.000 1.456,340 170,544 724,690 31.463 345,287 45,144 490 1,317,618 11 39 1.317,618 Non-Current Assets Trade and other receivables Investments accounted for using equity method Other financial assets Property, plant and equipment Investment properties Intangible assets Total non-current assets 12 37 13 14 49,391 3,854 19,370 096,207 2,508,951 84,631 3,342,404 78,443 4,497 18,283 660.337 2.429,397 69,067 3,260,024 15 16 Total Assets 4.798,744 4.577.642 17 18 Current Llabilities Trade and other payables Interest-bearing loans and borrowings Income tax payable Other liabilities Provisions Total current liabilities 283,682 494,579 12,000 75,819 33,028 899,108 289,986 422,191 15,608 66,825 35,354 829,964 20 Non-Current Liabilities Interest-bearing loans and borrowings Provisions Deferred income tax liabilities Other liabilities Total non-current liabilities 21 20 5(d) 23 346,942 13,025 330,546 11,330 701,843 503.203 11,645 280,735 14,163 809,746 Total Liabilities 1,600,951 1,639,710 NET ASSETS 3,197.793 2,937,932 Equity Contributed equity Reserves Retained profits Parent entity interests Non-controlling interests TOTAL EQUITY 24 25 26 552.250 217.724 2,397,436 3.167,410 30,383 3,197,793 388.381 185,384 2,337,241 2,911,006 26,926 2,937,932 27 The above Statement of Financial Position should be read in conjunction with the accompanying notes 60