Assignment
The cash flow statements for retailing giant Discount Bonanza Ltd spanning the period 2012-2015 are as follows:
12 Months Ending
|
|
31/12/2015
($ millions)
|
31/12/2014
($ millions)
|
31/12/2013
($ millions)
|
31/12/2012
($ millions)
|
|
Net profit
|
13,000
|
12,000
|
11,000
|
10,000
|
|
Depreciation expense
|
6,500
|
6,300
|
5,000
|
4,000
|
|
Changes in working capital
|
1,200
|
2,300
|
2,400
|
1,000
|
|
Cash from operating activities
|
20,700
|
20,600
|
18,400
|
15,000
|
|
Capital expenditure
|
(16,000)
|
(14,500)
|
(14,000)
|
(12,300)
|
|
Cash from investing activities
|
(16,000)
|
(14,500)
|
(14,000)
|
(12,300)
|
|
Interest and financing costs
|
(350)
|
(250)
|
(350)
|
100
|
|
Total cash dividend paid
|
(3,600)
|
(2,800)
|
(2,500)
|
(2,200)
|
|
Issuance (retirement) of shares
|
(8,000)
|
(1,500)
|
(3,600)
|
(4,500)
|
|
Issuance (retirement) of debt
|
1,500
|
(100)
|
4,000
|
4,100
|
|
Cash from financing activities
|
(10,450)
|
(4,650)
|
(2,450)
|
(2,500)
|
|
Net change in cash
|
(5,750)
|
1,450
|
1,950
|
200
|
Required:
1) Describe Discount Bonanza's sources of financing in the financial markets over the last four years.
2) Prepare a brief narrative that describes the major activities of Discount Bonanza's management team over the last four years.
3) Explain the three perspectives from which financial statements can be viewed.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.