Analysis of profitability, liquidity and financial structure
JB Hi-Fi's 2011 balance sheet gives the following data:

JB Hi-Fi Ltd increased its number of stores by 18 in 2011 and expanded its product offerings. It is expected the current growth will continue for the next four to five years. In 2011, its revenue increased by 8.3% and earnings per share increased by 13.6%.
Required
a. Comment on JB Hi-Fi Ltd's profitability and liquidity situation.
b. Analyse and comment on JB Hi-Fi Ltd's financing structure in the 2010 to 2011 period.

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Non-current assets Current assets Total assets Equity Non-current liabilities Current liabilities Total equity and liabilities Source: JB Hi-Fi Ltd 2011, annual report, p. 44 2011 S 000 266 067 501 072 767 139 152 313 268 888 345 938 767 139 2010 S'000 259 814 454 508 714322 293 296 57 887 363 139 714322