QUESTION 3

Your parents are considering investing in David Jones Ltd (DJS) shares. They ask you, an accounting expert, to make an analysis of the entity for them. An extract from the five-year summary included in David Jones Ltd 2013 annual report is presented below. All figures are in thousands. DAVID JONES LTD Five-year summary 2009-2013 2013 $1 845 012 706 144 99 532 49 466 148 998 101 554 1 237 785 436 689 801 096 19.2 2012 $1 867 817 699 830 104 995 49 418 154 413 101 103 1 240 897 465 193 775 704 19-4 17.5 2010 $2 053 087 815 729 204 798 44 379 249 177 170 766 1194 921 450 683 744 238 34 0 2009 $1 985 490 786 146 184 377 41 274 225 651 156 522 1 124 674 439 832 684 842 31.5 28 2011 Sales Gross profit Department store EBIT Financial services-EBIT Total EBIT Profit after tax Total assets Total liabilities Total equity Basic earnings per share (cen Dividends per share (cents) $1 961 744 767 269 199 003 47 707 246 710 168 139 1 214 550 429 070 785 480 ts) 28