Question 1

get a vertical analysis of Harvey Norman Holdings Ltd for the year 2018 and 2019 completing the table below (use Sales of Products as the anchor)

Round all calculations to 2 decimal places

Income Statement

2019

2018

Sales of Products

Cost of Sales

All other revenue and share of profits joint ventures

Expenses (including tax) and finance costs

Profit after tax

Question 2

get a trend analysis of Harvey Norman Holdings Ltd from 2016 to 2019 completing the table below (year base: 2016):

Round all calculations to 2 decimal places

Income Statement

2019

2018

2017

2016

Sales of Products

Gross Profit

Profit after Tax

Question 3

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

Quick Ratio

Debt Ratio

Analysis of the following items (each analysis in only one short sentence):

Profitability:

Liquidity:

Capital Structure:

INCOME STATEMENT for the year ended 30 JUNE 2019 CONSOLIDATED June June 2019 2018 Note Sales of products to customers 2,234,118 1,993.760 Cost of sales (1510,733) (1,326.339) Gross profit 723,385 667,421 Revenue received from franchisees CH CH 943.648 965,472 Revenues and other income items 242.419 200.253 Distribution expenses (41,102) (41,602) Marketing expenses (391,044) (374,322) Docupancy expenses 256.106) (241 220) Administrative expenses (567.970) (585,683) Other expenses (57,676) (39.595) Finance costs (28,782) 26,344) Share of net profit of joint ventures entities 9.787 5,792 Profit before income tax 574.559 530,172 Income tax expense 5 (165,657) (150,122) Profit after tax 409,002 480.050 Attributable to: Owners of the parent 402,317 375,378 Non-controlling interests ,685 4,672 409.002 380.050 Earnings Per Share: Basic earnings per share (cents per share) 34.70 cents 33.21 cents Diluted earnings per share (cents per share) A 34.67 cents 33.18 cents Dividends per share (oents per share) * 26 33,0 cents 30.0 cents "This represents total dividends per share in respect of the year ended 30 June 2019 and the year ended 30 June 2018. The above Income Statement should be read in conjunction with the accompanying notes. HARVEY NORMAN HOLDINGS LIMITED 61 Annual Report June 219STATEMENT of FINANCIAL POSITION as at 30 JUNE 2019 CONSOLIDATED June June 2019 2018 Note $000 3000 Current Assets Cash and cash equivalents 215,048 170,544 Trade and other receivables 7 741862 724,690 Other financial assets 8 28.888 31,463 Inventories 395,965 345,287 Other assets 10 37,541 45,144 Intangible assets 11 370 490 Subtote 1,419.674 1,317.618 Assets held for sale 39 36.668 Total current assets .454,340 .317.618 Non-Current Assets Trade and other receivables 49 391 78 443 Investments accounted for using equity method 3,854 4,497 Other financial assets 19,370 18,283 Property. plant and equipment 696.207 660,337 Investment properties 2.508,951 2,429,397 Intangible assets 14.831 69,067 Total non-current assets 3,342,404 5,260,024 Total Assets 4,798,744 4,577.642 Current Llabilities Trade and other payables 17 283,682 289,986 Interest-bearing loans and borrowings 494 579 422,191 Income tax payable 12,000 15,608 Other liabilities 19 75,819 56,825 Provisions 20 33,028 35 354 Total current liabilities 899.108 829,964 Non-Current Liabilities Interest-bearing loans and borrowings 21 346.942 503,203 Provisions 20 13,025 11,645 Deferred income tax liabilities 5(d) 330,546 280,735 Other liabilities 23 11,330 14, 163 Total non-current liabilities 701,843 809,746 Total Liabilities 1,600,951 1,639,710 NET ASSETS 3.197.793 2.937,932 Equity Contributed equity 24 652.250 188.381 Reserves 25 217.724 185,384 Retained profits 2,397,436 2,337,241 Parent entity interests 3,167 410 2,911,006 -controling interests 27 30,383 26.926 TOTAL EQUITY 3,197,793 2.937,932 The above Statement of Financial Position should be read in conjunction with the accompanying notes. 60INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2017 CONSOLIDATED June June 2017 2016 Note $000 Sales revenue 3 1,833,123 1,795,759 Cost of sales (1,235,602) (1,231,933) Gross profit 597,521 563,826 Revenues and other income items 3 1,333,887 1,230,484 Distribution expenses (36,189) (34,554) Marketing expenses (385,895) 385,664) Occupancy expenses 4 226,994) (232,002) Administrative expenses 4 (519,986) (511,182) Other expenses 4 (107,666) (112,795) Finance costs 4 (20,072) (28,706) Share of net profit of joint ventures entities 37 5,200 1.356 Profit before income tax 39.806 493,763 Income tax expense 5(a) & 5(c) (186,840) (142,423) Profit after tax 152,966 351,340 Attributable to: Owners of the parent 448,976 348,605 Non-controlling interests 3.990 2,735 452,966 351,340 Earnings Per Share: Basic earnings per share (cents per share) 6 40.35 cents 31.36 cents Diluted earnings per share (cents per share) 40.30 cents 31.33 cents Dividends per share (cents per share] 26 26.0 cents 30.0 cents The above Income Statement should be read in conjunction with the accompanying notes.STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 CONSOLIDATED June June 2017 2016 Note $000 Current Assets Cash and cash equivalents 28(a 80,224 139,874 Trade and other receivables 7 640,686 1,096,572 Other financial assets 8 29,191 26,204 Inventories 9 315,968 315,746 Other assets 10 45,878 26,703 Intangible assets 11 486 448 Total current assets 1,112,433 1,605,547 Non-Current Assets Trade and other receivables 12 78,777 74,382 Investments accounted for using equity method 37 26,355 24,828 Other financial assets 13 30,076 18,751 Property. plant and equipment 14 625,112 580,805 Investment properties 15 2,241,754 2,046,205 Intangible assets 16 75,237 81,192 Total non-current assets 3,077,311 2.825,253 Total Assets 1.189,744 4,431,800 Current Liabilities Trade and other payables 17 238,628 713,553 Interest-bearing loans and borrowings 18 386,651 453,035 Income tax payable 42,541 12,711 Other liabilities 19 41,571 41,016 Provisions 20 34,034 28,697 Total current liabilities 743,425 1,279,012 Non-Current Liabilities Interest-bearing loans and borrowings 21 333,858 201,042 Provisions 20 13,052 14,710 Deferred income tax liabilities 5(d) 267,219 226,254 Other liabilities 23 19,283 22, 108 Total non-current liabilities 633,412 464,114 Total Liabilities 1,376,837 1.743, 126 NET ASSETS 2,812,907 2,688,674 Equity Contributed equity 24 386,309 385,298 Reserves 25 174,950 155,814 Retained profits 26 2,229,200 2, 125.186 Parent entity interests 2,790,459 2.666,295 Non-controlling interests 27 22,448 22.378 TOTAL EQUITY 2,812,907 2.688,674 The above Statement of Financial Position should be read in conjunction with the accompanying notes