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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

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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 (S'ooo) 201 2009 550 2013 $184542 70614 99 532 aosa Seyy 6990 104 995 2010 Sa 053 BIS 729 204798 Gross pro Department store- Financial services-ENT Total Profitafter tar Total assets Total abilities 225651 101554 23785 436 619 101 103 1240 897 46593 775704 767209 199003 47102 2460 1689 1216 550 439 7856 33 21 249177 170766 *19491 450 7462 34 30 124 674 439539 6 sor Basic amnings per shares) Dividends per share (cents) 193 17 15 28 Principles of Accounting BAP11 A - Required 3- Trimester 2 2020 a. Prepare a 5-year trend (horizontal) analysis of sales, gross profit, department store EBIT, financial services EBIT and profit after tax using 2009 as the base year. Comment on the significance of the trend results. b. Calculate the following for 2013 and 2012: 1. Debt to total assets ratio. 2. Profit margin. 3. Asset turnover. 4. Return on shareholders' equity. s. Dividend payout. c. How would you evaluate David Jones Ltd's profitability, solvency and investment potential

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