Financial Statement Interpretation & Analysis-Jamaica Broilers Group

1. What was the net income for 2015? What was the basic net income (earnings) per common share for 2015?

With the use of the Group Statement of Comprehensive Income the following were noted:

• The net income/profit for 2015 was JA$1,009,654,000.00
• The basic net income(earnings) per common share for 2015 was 86.40 cents per common share

1. What was the gross profit for 2015? 2014?

With the use of the Group Statement of Comprehensive Income the following were noted:

• The gross profit for 2015 was JA$8,021,385,000.00
• The gross profit for 2014 was JA$6,507,704,000.00

1. How much interest expense was incurred in 2015? In 2014?

With the use of the Group Statement of Comprehensive Income and note 9 the following were noted:

• JA$638,689,000.00 interest expense was incurred in 2015
• JA$470,333,000.00 interest expense was incurred in 2014

1. What was the amount of income before income taxes for 2015? For 2014?

With the use of the Group Statement of Comprehensive Income the following were noted:

• The amount of income before income taxes for 2015 was JA$1,561,852,000.00
• The amount of income before income taxes for 2014 was JA$1,073,096,000.00

1.  How were expenses classified in 2015? What were the amounts under each category?  

• Cost of Sales: (JA$26,548,665,000.00)
• Distribution costs: (JA$1,033,495,000.00)
• Administration and other expenses: (JA$5,041,235,000.00)
• Finance costs: (JA$704,701,000.00)

Note: taxation of (JA$552,198,000.00) can also be considered as an expense

1. What amount of dividends on common stock was paid per share and in total in 2015 and 2014?

 With the use of the Group Statement of Comprehensive Income, the Group Statement of Changes in Stockholders Equity and note 26 the following were noted:

• In 2015, 17cents of dividend on common stock was paid per share with  a total of JA$203,877,000.00
• In 2014, 16cents of dividend on common stock was paid per share with a total of JA$191,884,000.00

1. What were the total revenues and income before income taxes, respectively, for 2015? 2014?

With the use of the Group Statement of Comprehensive Income the following were noted:

• The total revenues before tax for 2015 was JA$34,570,050,000.00
• The total revenues before tax for 2014 was JA$30,851,350,000.00
• The total income before income taxes for 2015 was JA$1,561,852,000.00
• The total income before income taxes for 2014 was JA$1,073,096,000.00

1. How much was the net cash provided (or used) by operating activities in 2015? In 2014?

With the use of the Group Statement of Cash Flows the following were noted:

• Net cash provided by operating activities in 2015 was JA$2,801,790,000.00
• Net cash provided by operating activities in 2014 was JA$1,416,115,000.00

1. How much was the net cash provided (or used) by investing activities in 2015? In 2014?

With the use of the Group Statement of Cash Flows the following were noted:

• Net cash used in investing activities in 2015 was (JA$938,316,000.00)
• Net cash used in investing activities in 2014 was (JA$2,374,982,000.00)

1. How much was the net cash provided (or used) by financing activities in 2015? In 2014?

With the use of the Group Statement of Cash Flows the following were noted:

• Net cash used in financing activities in 2015 was (JA$731,162,000.00)
• Net cash provided by investing activities in 2014 was JA$111,154,000.00

1. Was any cash provided by the issuances of debt in 2015? In 2014?

With the use of the Group Statement of Cash Flows the following were noted:

• Cash provided by the issuances of debt in 2015 was JA$1,455,094,000.00
• Cash provided by the issuances of debt in 2014 was JA$2,679,839,000.00

1. How much cash flowed into/out of the company in 2015? What was the main source/use of the cash?

With the use of the Group Statement of Cash Flows the following were noted:

• For 2015 a total of JA1,455,094,000.00 cash flowed in the company
• The main source of the cash was from operating activities

1. What were the cash and cash equivalents at the end of 2015 and 2014? What does the company classify as cash equivalents?

With the use of the Group Statement of Cash Flows and note 24 the following were noted:

• The cash and cash equivalents at the end of 2015 was JA$1,668,557,000.00
• The cash and cash equivalents at the end of 2015 was JA$514,628,000.00

The company classifies the following as cash equivalents:

• Cash and short term investment and less short term borrowing and bank draft

1. What were the total accounts receivable (net) at the end of 2015? At the end of 2014?

With the use of the Group Balance Sheet the following were noted:

• The total receivables for 2015 was JA$2,789,062,000.00
• The total receivables for 2014 was JA$2,699,011,000.00

1. How were the accounts receivables classified at the end of 2015?

 With the use of the Group Balance Sheet and note 22 the following were noted:

• Trade receivables
• Contract farmers’ receivables
• Deposits
• G.C.T recoverable
• Insurance claims receivables
• Jamaica Broilers Trust
• Staff receivables
•  Other

1. Compute the inventory turnover ratio for 2015 and 2014 using the ending inventory instead of the average inventory. What is your evaluation of the difference?

 Ending inventory method

With the use of the Group Statement of Comprehensive Income and Group Balance Sheet the following were noted

• 2015 Cost of goods sold ÷ inventory        2015 Cost of goods sold ÷ inventory                                                          

   26,548,665,000÷3,948,883,000=6.72times                24,343,646,000÷3,693,396,000=6.59times

• Based on the calculations above, 2015 had a greater inventory turnover

1. What was the total amount of inventories in 2015, and 2014? What were the categories of inventory on these dates?

With the use of the Group Balance Sheet and note 20 the following were noted: