Question 2

Prepare 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

Transcribed image text: INCOME STATEMENT for the year ended 30 JUNE 2019 CONSOLIDATED June 2019 S000 June 2018 $000 Note 3 Sales of products to customers Cost of sales Gross profit 2.234 118 (1.510,733) 723,385 1.993,760 (1,326,339) 667,421 3 3 4 Revenue received from franchisees Revenues and other income items Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Other expenses Finance costs Share of net profit of joint ventures entities Profit before income tax Income tax expense Profit after tax 4 4 943.648 242 419 (41.102) (391044) (258,106) (567,970) (57.676) (28,782) 9,787 574559 (165,567) 409.002 965,472 200.253 (41602) (374,322) (241220) (585,683) (39.595) (26,344 5.792 530,172 (150.122) 380.050 37 5 Attributable to: Owners of the parent Non-controlling interests 402,317 6.685 409.002 375,378 4,672 380,050 6 6 34.70 cents 34.67 cents Earnings Per Share Basic earnings per share (cents per share) 33 21 cents Diluted earnings per share (cents per share) 33.18 cents Dividends per share (cents per share) 25 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. 61 HARVEY NORMAN HOLDINGS LIMITED Accedono INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2017 CONSOLIDATED June 2017 $000 June 2016 S000 Note 3 Sales revenue Cost of sales Gross profit 1,833,123 (1,235,602) 597,521 1,795,759 (1 231 933) 563 826 3 4 4 Revenues and other income items Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Other expenses Finance costs Share of net profit of joint ventures entities Profit before income tax Income tax expense Profit after tax 4 4 37 1,333,887 (36,189) (385,895) (226,994) (519,986) (107,666) (20,072) 5,200 639,806 (186,840) 452,966 1,230.484 (34,554) (385 664) (232,002) (511,182) (112,795) (28,706) 4356 493.763 (142 423) 351,340 5(a) & 5(c) Attributable to: Owners of the parent Non-controlling interests 448,976 3,990 452,966 348 605 2.735 351 340 Earnins Per Share: Basic eamings per share (cents per share) Diluted eamings per share (cents per share) Dividends per share (cents per share) 6 6 40.36 cents 40.30 cents 31.36 cents 31.33 cents 26 26.0 cents 30.0 cents The above Income Statement should be read in conjunction with the accompanying notes