Base your answers to the following questions on the financial statements for H&M in Appendix A at the end of the book. In the questions below, the year 2009 refers to H&M's fiscal year that ends November 30, 2009, and the year 2008 refers to the prior fiscal year ending November 31, 2008.
a. Determine the amount of dividends that H&M declared in 2009. On which financial statement(s) did you find this information?
b. Find the following amounts in the statements:
i. Revenues from the sale of merchandise in 2009
ii. Cost of sales and selling, general and administrative expenses, in 2009
iii. Interest expense in 2009
iv. Income tax expense in 2009
v. Net earnings in 2008
vi. Inventories at the end of 2008
vii. Accounts payable and accrued liabilities at the beginning of 2009
viii. Retained earnings at the end of 2009
ix. Long-term debt at the beginning of 2009 (include the current portion of long-term debt)
x. Cash flows generated from operating activities in 2009
xi. Cash payments to acquire fixed assets in 2009
xii. Cash proceeds from the issuance of capital stock in 2009
xiii. Cash flows generated from (used for) financing activities in 2008
xiv. Cash payments to reduce long-term debt in 2009
c. List the two largest sources of cash and the two largest uses of cash in 2009. (Consider operations to be a single source or use of cash.)
d. Suggest two reasons why net earnings were SEK 16,384 million in 2009, yet cash flows generated from operations were SEK 17,973 million.
e. During 2009, total sales revenue was approximately SEK 12.861 million higher than in 2008. However, net earnings in 2009 were only SEK 1,090 million higher than in 2008. By examining the statement of earnings, try to explain where the additional sales revenue went.