write a report on financial statement analyisof harvey norman and JB hifi. Each student is required to analyse and compare the $2023$ financial statements of two companies.

Required:

$1.$ Undertake the following analyses for both companies:

$$ Horizontal analysis

o $($Dollar and percentage change from $2022$ to $2023)$

$$ Vertical analysis

o Base amount for the Income Statement is Sales or Revenues Base Amount for the Balance Sheet is Total Assets

$$ Complete both vertical and horizontal analysis for the following accounts:

o Income Statement

$$ Revenues

$$ Cost of Sales $($Cost of Goods Sold$)$

$$ Gross Profit

$$ EBIT $($Earnings before Interest and Tax$)$

$$ Income tax expense

$$ Net Profit $($Profit for the year; Statutory profit$/($loss$)$ for the year$)$

o Balance Sheet

$$ Cash $($Cash and cash equivalents$)$

$$ Accounts Receivable $($Trade and other receivables$)$

$$ Inventory $($if applicable$)$

$$ Total Current Assets

$$ Total Non$-$Current Assets

$$ Total Assets

$$ Accounts Payable $($Trade and other payables$)$

$$ Total Current Liabilities

$$ Total Non$-$Current Liabilities

$$ Total Liabilities

$$ Share Capital $($Contributed Equity; Issued Capital$)$

$$ Retained Earnings

$$ Total Equity

$2.$ Calculate the following financial ratios for both companies:

$$ Profitability

o Return on Equity

o Return on Assets

o Gross Profit Margin

$$ Efficiency

o Asset Turnover

o Days in Inventory

o Days Debtors

o Times Inventory Turnover

$$ Liquidity

o Current Ratio

o Quick Asset Ratio

$$ Capital Structure

o Debt to Equity

o Interest Coverage

$3.$ Answer the following questions:

a$.$ Comment on each company$$s overall profitability, efficiency, liquidity, and capital

structure.

b$.$ Discuss any major differences between the two companies.

c$.$ Which areas indicate a high level of similarity between the companies?

d$.$ What other information would be useful when comparing these two companies?