accounting grp asgnmnt

8/12/2019 Accounting Grp Asgnmnt

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Table of Contents

Introduction of MYER

Financial Ratios of MYER 2012

Financial Ratios of MYER 2011


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Introduction

Myer(stylised MYER) is an Australian chain of up-market department stores. It is Australia's largest departmentstore chain, retailing a broad range of merchandise including women's, men's and children's clothing, footwearand accessories; cosmetics and fragrance; homewares; electrical; furniture and bedding; toys; books and

stationery; food and confectionery; and travel goods.

Our focus on providing inspiration to everyone includes our customers, our 12,500 team members, our 54,000shareholders, our 1,200 suppliers globally and the many communities that we engage with our strong brand.

Myer is a significant employer and has a long history of philanthropy and local community engagement.

The store network includes a footprint of 67 stores in prime retail locations across Australia.

The Myer merchandise offer includes 11 core product categories: Womenswear; Menswear; Miss Shop (Youth);Childrenswear; Intimate apparel; Beauty, fragrance and cosmetics; Homewares; Electrical goods; Toys; Footwear,

handbags and accessories; and General merchandise.

Myers five-point strategic planMyers strategy is comprised of five key elements:

1. Optimise our store network

2. Enhance our merchandise offer

3. Improve customer service and efficiency

4. Strengthen our loyalty offer

5. Build a leading omni-channel offer.


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462

/

M

yer

AnnuA

201

Consolidated statement of comprehensive incomefor the peri od ended 28 July 2012

Notes

201252 weeks

$000

201152 weeks

$000

profit for the period

other comprehensive income

Cash flow hedges 22(b)

141,067

(509)

159,665

(2,893)Actuarial gains/(losses) on retirement benefit obligation 183Exchangedifferences on translation of foreignoperations 22(b) 66 (85)Incometax relating to components of other comprehensive income 7(d) (535) 106

other comprehensive income for the period, net of tax (978) (2,689)

totalcomprehensive income for the period 140,089 156,976Total comprehensive income for the period is attributable to:

Owners of Myer Holdings Limited 138,317 157,121Non-controlling interests 1,772 (145)

140,089 156,976Theabove consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.


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M

yer

AnnuA

2012

/

Consolidated balance sheetas at 28 July 2012

Notes2012$000

2011$000

ASSetSCurrent assetsCash and cash equivalents 8 38,058 37,274Trade and other receivables 9 17,712 24,385Inventories 10 385,702 381,261Total current assets 441,472 442,920non-current assetsDerivative financial instruments 11 258Property,plant and equipment 12 515,482 535,139Deferred tax assets 13 21,115 47,380Intangibleassets 14 936,149 943,880Other 3,975 4,554

Total non-current assets 1,476,721 1,531,211totalassets 1,918,193 1,974,132lIABIlItIeSCurrent liabilitiesTrade and other payables 15 397,137 412,202Derivative financial instruments 11 2,490 7,476Current tax liabilities 15,191 33,897Provisions 16 85,957 90,586Other 2,094 4,199Total current liabilities 502,869 548,360non-current liabilitiesBorrowings 17 421,193 419,591Derivative financial instruments 11 1,785 Provisions 19 15,439 49,391Deferred income 69,821 62,448Other 20 29,406 33,012Total non-current liabilities 537,644 564,442

totalliabilities 1,040,513 1,112,802

net assets 877,680 861,330eQuItyContributed equity 21 519,776 519,479Retainedprofits/(losses) 22 363,357 349,396Reserves 22 (14,800) (15,120)

Capital and reserves attributable to owners of Myer Holdings Limited 868,333 853,755Non-controlling interests 9,347 7,575totalequity 877,680 861,330

Theabove consolidated balance sheet should be read in conjunction with the accompanying notes.


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M

yer

AnnuA

201

Consolidated statement of changes in equityfor the peri od ended 28 July 2012

Notes

Contributedequity$000

Reserves$000

Retained

earnings$000

Non-controlling

interests$000

Total$000

Balance as at 31 July 2010 517,128 19,842 320,470 857,440

totalcomprehensive income

for the period (2,872) 159,907 (59) 156,976

transactionswith owners in their

capacity as owners:Contributions of equity,net of transaction costs 21 2,351 2,351Put option to acquire non-controlling interest 22 (31,650) (31,650)

Non-controlling interest on acquisition

of subsidiary 7,634 7,634Dividendsprovided for or paid 23 (130,981) (130,981)

Employee share options 22 (440) (440)2,351 (32,090) (130,981) 7,634 (153,086)

Balance as at 30 July 2011 519,479 (15,120) 349,396 7,575 861,330

totalcomprehensive income

for the period (1,048) 139,365 1,772 140,089

transactionswith owners in their

capacity as owners:Contributions of equity,net of transaction costs 21 297 297Dividendsprovided for or paid 23 (125,404) (125,404)Employee share options 22 1,368 1,368

297 1,368 (125,404) (123,739)

Balance as at 28 July 2012 519,776 (14,800) 363,357 9,347 877,680Theabove consolidated statement of changes in equity should be read in conjunction with the accompanying notes.


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M

yer

AnnuA

2012

/

Consolidated statement of cash flowsfor the peri od ended 28 July 2012

Notes

201252 weeks

$000

201152 weeks

$000

Cash flows from operating activitiesReceipts from customers (inclusive of goods and services tax) 3,038,360 3,095,328Payments to suppliers and employees (inclusive of goods and services tax) (2,805,122) (2,865,443)

233,238 229,885Other income 36,208 54,200Interestpaid (32,169) (38,190)Taxpaid (57,363) (18,844)

net cash inflow from operating activities 32 179,914 227,051

Cash flows from investing activitiesProceeds from sale of financial asset 13,280Payments forproperty,plant and equipment

(48,715)

(136,542)

Acquisition of subsidiary (40,374)Acquisition of brands (8,413) (2,070)Payments for intangible assets (10,189) (7,633)Proceeds from sale of software 2,696 Leaseincentives received 16,750 6,109Returnof capital received from investment 4,404Interestreceived 1,462 2,176


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Financial Ratios of 2012

Profitability Ratios:

Profit margin (PM) = Profit / Net sale

= $1410m / $3119m

= $0.04

Asset turnover = Net sales / Average assets

= $3119m / 1918

= 1.62 times

Return on assets (ROA) = Profit (PBIT) / Average assets

= $2346m / $1918m

= 0.12%

Return on equity (ROE) = Profit / Average equity

= $1410m / 8776m

= 0.16%

Gross profit margin= gross profit(sales less cost of goods sold)/sales

revenue

= 1654m/2612m

= 0.63%

EFFICIENCY RATIO

1-Asset turnover ratio = sales revenue/average total assets

= 2612m/1918m

=1.36%


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2-Times inventory turnover = cost of goods sold/avg inventory

=1464m/3857m

=3.79%

3- Times debtor turnover = Sales revenue/Average trade debtors

= 2612m/1771m

=147.5times

4-Days inventory = average inventory/cost of goods sold * 365 days

= 3857m/1464m * 365

=96.12

5- Days debtors = average trade debtors/sales revenue * 365 days

= 3917m/ 2612m * 365

=55.48

Liquidity Ratios:

1- Current Ratio = Current Assets / Current Liabilities

= $4414m / $5028m

= 0.87 times

2- Quick asset ratio = current assets less inventory/ current liabilities

= 5577/5028

= 0.11%

3- Cash flow ratio = Net cash flow from operating activities/ current liabilities

= 1799/5028

= 0.35%


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= $1596m / $3158m

= $0.50


= $3158m / 1974m

= 1.60 times


= $2601m / $1974m

= 0.13%


= $1596m / 8613m

= 0.18%


revenue

= 1607m/2666m

= 0.60%


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EFFICIENCY RATIO


= 2666m/1974m

=1.35%

2-Times inventory turnover = cost of goods sold/ average inventory

=1551m/3812m

=4.06


= 2666m/2438m

=109.4times


= 3812m/1551m * 365

=89.71 days


= 2438m/ 2666m * 365

=3.33%

Liquidity Ratios:


= $4429m / $5483m

= 0.80times


= 5577/5483

= 0.10%


= 2270/5483

= 0.41%


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DAVID JONES

Income Statement

For the 52 weeks ended 28 July2012 and30 July2011

DavidJones Limitedand itscontrolledentities

2012 2011Note $000 $000

Revenue from saleofgoods 1,867,817 1,961,744

Cost of sales (1,167,987) (1,194,474)Grossprofit 699,830 767,270

Other income 2 57,568 55,526

Employeebenefitsexpenses (282 ,593) (282,403)

Leaseand occupancy expenses (189,114) (178,184)

Depreciation and amor tisation expenses 3 (51,949) (45,876)

Adver tising,market ingand visualmerchandisingexpenses (39,036) (32,820)

Administration expenses (26,909) (20,800)

Other expenses (13,384 ) (16,003)

Financecosts 3 (10,938) (7,789)

Financeincome 3 347 401Profit beforeincometax expense 143,822 239,322

Incometax expense 5 (42,719) (71,183)

Profit afterincometax expense attributableto equityholders of the parent entity 23 101,103 168,139

Other comprehensiveincome :

Gainson cash flow hedges 1,713 1,429

Transfer of realisedgainson hedges to profitand loss (1,621) (928)

Incometax on itemsof other comprehensiveincome (28) (150)

Totalother comprehensiveincomefor the period,net oftax 64 351

Totalcomprehensiveincomeattributableto equityholders of the parent entityfor the period 101,167 168,490Earningsper share forprofitattributable to the equityholdersof the parent entity :

Basicearningsper share (cents per share) 7 19.4 33.0

Dilutedearningsper share (cents per share) 7 19.4 32.4


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Balance Sheet

At 28 July2012 and30 July2011


2012 2011Note $000 $000

CURRENT ASSETS

Cash and cash equivalents 8 20,536 11,703

Receivables 9 16,389 19,637

Inventories 10 279,099 288,850

Financialassets 11 24

Other assets 12 7,201 6,911

Totalcurrent assets 323,249 327,101

NON-CURRENT ASSETS

Financialassets 11 12 12

Proper ty,plantand equipment 13 817,432 798,416

Intangibleassets 14 43,977 34,422

Deferredtax assets 15 55,833 54,410

Other assets 12 394 189

Totalnon-current assets 917,648 887,449

Totalassets 1,240,897 1,214,550

CURRENT LIABILITIES

Payables 16 264,595 216,429Interestbearing liabilities 17 11,006 2,943

Current tax liabilities 3,097 18,654

Provisions 18 25,955 26,418

Financialliabilities 19 1,357 1,409

Other liabilities 20 288 280

Totalcurrent liabilities 306 ,298 266,133

NON-CURRENT LIABILITIES

Interestbearing liabilities 17 125,000 129,000

Provisions 18 6,183 6,492

Other liabilities 20 27,712 27,445

Totalnon-current liabilities 158,895 162,937

Totalliabilities 465,193 429,070

Net assets 775,704 785,480

EQUITY

Contributedequity 21 547,028 525,105

Reser ves 22 74,362 74,647

Retainedearnings 23 154,314 185,728

Totalequity 775,704 785,480


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Statement of changes in Equity

For the 52 weeks ended 28 July2012 and30 July2011


Share

Capital

Cash Flow

Hedge

Reserve

Share Based

Payments

ReserveRetained

Earnings TotalNote $000 $000 $000 $000 $000

For the 52 weeks ended 30 July2012

Balance as at 31 July2011 525,105 (986 ) 75,633 185,728 785,480

Profitfor the period 101,103 101,103

Other comprehensive income,net of tax 64 64

Totalcomprehensiveincomefor the period 64 101,103 101,167

Transactionsw ith owners,recorded directlyin equity:

Dividendspaid 6 (132,517) (132,517)

Issueof ordinar y shares through

DividendReinvestmentPlan 21,923 21,923

Share based payments (625) (625)

Incometax 276 276

Totalcontributions by and distributions to owners 21,923 (349) (132,517) (110,943)

Balance as at 28 July2012 547,028 (922 ) 75,284 154,314 775,704

For the 52 weeks ended 30 July2011Balance as at 1 August 2010 502,199 (1,337) 68,071 175,305 744,238

Profitfor the period 168,139 168,139

Other comprehensive income,net of tax 351 351

Totalcomprehensiveincomefor the period 351 168,139 168,490

Transactionsw ith owners,recorded directlyin equity:

Dividendspaid 6 (157,716) (157,716)

Issueof ordinar y shares throughDividendReinvestmentPlan 27,512 27,512

Share based payments 5,846 5,846

On-market purchase of shares by Trust (4,743) (4,743)Employeeshare purchase plan 137 137

Incometax 1,716 1,716

Totalcontributions by and distributions to owners 22,906 7,562 (157,716) (127,248)

Balance as at 30 July2011 525,105 (986) 75,633 185,728 785,480


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Statement of Cash flows

For the 52 weeks ended 28 July2012 and

30 July2011


2012 2011Note $000 $000

CASH FLOWSFROM OPERATINGACTIVITIES

Receiptsfrom customers (inclusiveof GST) 2,058 ,903 2,168,821

Payments to suppliersand employees( inclusiveof GST) (1,846 ,677) (1,967,589)

Commissionsreceived 54,498 48,201

Interestreceived 347 401Borrowingcostspaid (10,884 ) (7,548)

Incometaxpaid (59,450) (59,848)

Net cash flows from operatingactivities 24 196,737 182,438

CASH FLOWSFROM INVESTINGACTIVITIES

Payments for proper ty,plantand equipment (70,009 ) (80 ,941)

Payments for software (11,475) (576)

Net proceeds from saleof proper ty 111

Net cash flows used in investingactivities (81,373) (81,517)

CASH FLOWSFROM F

IN

ANC

ING

ACT

IV

IT

IES

Dividendspaidon ordinar y shares 6 (110,594) (130,204)

Net proceeds fromborrowings 7,000 28,000

On-market purchase of shares for Trust (4,743)

Proceeds from loan repayments under employeeshareplan 137

Net cash flows used in financing activities (103,594) (106,810)

Net increase/(decrease) in cash and cash equivalents 11,770 (5,889)

Cash and cash equivalentsat beginningof the financialyear 8,760 14,649

Cash and cash equivalents at end ofthe financial year (i) 20,530 8,760

Notes:

(i) Reconciliation to the Statement ofFinancial PositionCash and cash equivalents iscomprisedofthe following :

Cash and cash equivalents 8 20,536 11,703

Bank overdraft 17 (6) (2,943)

Cash and cash equivalents at end ofthe financial year 20,530 8,760


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= $1011m / $1867m

= 0.54%


= $1867m / 1240

= 1.5 times


= $1438m / $1240m

= 0.16%


= $1011m / 7757m

= 0.13%


revenue

= 6998m/1867m

= 0.37%

EFFICIENCY RATIO


= 1867m/1240m

=1.5%


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2-Times inventory turnover = cost of goods sold/avg inventory

=1167m/2790m

=4.2%


= 1867m/1638m

=103.9times


= 2790m/1167m * 365

=87days


= 1638m/ 1867m * 365

=3.2

Liquidity Ratios:


= $3232m / $3062m

= 1.1times


= 4415/3062

= 0.14%


= 1967/3062

= 0.6%


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= $1681m / $1961m

= 0.09%


= $1961m / 1214m

= 1.61 times


= $2393m / $1214m

= 0.2%


= $1681m / 7854m

= 0.21%


revenue

= 7672m/1961m

= 0.39%


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EFFICIENCY RATIO


= 1961m/1214m

=1.62%

2-Times inventory turnover = cost of goods sold/ average inventory

=1194m/2888m

=4.13


= 1961m/1963m

=99.9times


= 2888m/1194m * 365

=88.26 days


= 1963m/ 1961m * 365

=3.65%

Liquidity Ratios:


= $3271m / $2661m

= 1.22times


= 3825/2661

= 0.14%


= 1824/2661

= 0.68%

accounting grp asgnmnt

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