David Jones Cash Flow Report for His Annual Report 2010

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ASSIGNMENT

OPTION 1

The financial statements for David Jones Ltd can be accessed from the following website http://www.davidjones.com.au/For-Investors/Presentations-and-Reports-2010/Annual-reports- 2010. Examine these statements and answer the following questions:

* What were David Jones’s main operating activities during 2010? What were the main differences between the accrual and cash flow effects of these activities?

* If you owned 10,000 of the company’s shares, what would be your claim on the company’s earnings for 2010? Was this a larger or smaller claim than you would have had for 2009?

* What were the company’s main sources of cash for 2010? In general, what did the company do with the cash it received?

* What were the main financial activities during 2010? In general, how would you describe the company’s financing activities overall during the last 2 years?

* What main investing activities occurred in 2010?

* As of the end of 2010, what were the company’s most important reported assets? What other resources may be important to the company, yet are not reported on its statement of financial position?

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Table of Contents
Executive Summary5
Type chapter title (level 2)2
Type chapter title (level 3)3
Type chapter title (level 1)4
Type chapter title (level 2)5
Type chapter title (level 3)6

Executive Summary

David Jones Limited (DJS) since 1838 is an exclusive Australia-wide chain of retail department stores, which manages thirty five department stores and two warehouse outlets. |

David Jones Limited was able to cultivate its financial performance and beneficial shareholder returns for 2010 with record financial results against all challenges. The company offered the best branded department store delivering best customer experience for customers, the best place to work for their people, the best partnership for their branded suppliers, and the best investment returns for their shareholders.

Contrary to the global financial crisis affecting the economy, DJS financial year end for 2010 highlighted outstanding records compared to 2009. DJS delivered a Net Profit After Tax increase of 9.1% that amounts to $170.8 million, Sales Growth increased to 3.4% equivalent of $1.99 billion, Fully Franked Dividends increased to 7.1% for ordinary shareholders to 30cps, Gross Profit Margin increase to a 10 basis points of 39.7%, Cost of Doing Business decreased to 29.8%, and Capital Expenditure maintained tight control allowing significant reinvestment whilst generating a strong free cash flow.

Introduction to David Jones Limited

David Jones Limited (DJS) since 1838 is an exclusive Australia-wide chain of retail department stores, which manages thirty five department stores and two warehouse outlets, employing approximately 9,000 people across 41 locations in New South Wales, Australian Capital Territory, Queensland, Victoria, South Australia and Western Australia.

Operating Activities of David Jones Limited

1.1 Main Operating Activities during 2010 for David Jones Limited

The operating activity that directly affects an organization's cash inflows and outflows showing whether, and to what extent, DJS can generate cash from their operations caused by the company’s core business activities, and determine its net profit and loss shown in the Consolidated Cash Flow Statement on page 63 of the Annual Report.

The cash inflows are money received by DJS, resulting from operating activities such as receipts from customers, commissions received, and interest received for FY2010. The cash out flow is money paid DJS, required to spend on payments to suppliers and salaries, borrowing costs paid, and income tax paid.

DJS operating activities indicates from Figure 1.1 that in 2010 there was an increase in the company’s...
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