Business Operation of Organization Communication

Question: Discuss about the Business Operation of Organization Communication. Answer: Introduction: JB Hi Fi Limited is one of largest retailers of consumer goods operating in both Australia and New Zealand. JB Hi Fi Limited is growing in a fast pace based on the business operation of the organization. Some major products of the company have earned popularity in the consumer market of both the countries They are different kinds of video games, Blu-rays, CDs, DVDs, various electronics products and many other. The superior quality of all these products has made JB Hi Fi Limited one of the largest organizations in the country (jbhifi.com.au 2017). JB Hi Fi Limited is an organization that cares for their different stakeholders like the shareholders, investors, employees and other people who are involved with the company. To make their various stakeholders aware about the current financial position of the organization, JB Hi Fi Limited uses to publish the annual report of the company on a yearly basis. The annual report of the organization includes all the relevant financial statements of the company that includes the consolidated profit and loss statement, the consolidated balance sheet, the consolidated income statement, the statement of cash flow and many others. The publication of all these financial statement makes the organization reliable as well as dependable to their various shareholders and investors. On the other hand, all these financial statements are audited and hence, they reflect the true and fair financial situation of the organization. According to the given situation, the major question is that whether JB Hi Fi Limited has occurred any kind of non-cash financing activities or non-cash investing activities. Non-cash financing or investing activities are an important portion of any companys business activities. It is essential to know that what are the major non-cash financing or investing activities for an organization. There are two types of financing and investing activities that can be seen in a business organization. They are financing or investing activities on cash basis; and financing and investing activities on non-cash basis (Balakrishnan, Core and Verdi 2014). In case of non-cash financing or investing activities, there are five major activities. They are discussed below. Issuance of stock for the retirement of a debt is a non-cash financing or investing activity in an organization. There are some specific reasons for the retirement of debt in an organization. The cancellation or retirement of stock happens when the organization buys them back (Huang, Ritter and Zhang 2016). Another non-cash financing or investing activity is the purchase of an assets by issuing shares or bonds. In this case, the transaction is based on shares and bonds and there is not any cash transaction. Exchange of non-cash assets is another example of non-cash financing or investing transactions. In this transaction, the organizations exchange the assets with the assets of other companies or any other sources. This process does not involve any cash (Chu, Hirshleifer and Ma 2016). The last example of non-cash financing or investing activity is the conversion of preference shares to the common stocks. This is a cashless financing or investing activity as it is occurred based on th e shares and stocks. These are the major non-cash financing or investing activities for a business organization. In case of JB Hi Fi Limited, the annual report of the company for 2016 includes all the necessary and relevant financial information. As per the annual report of the organization, it can be observed that JB Hi Fi Limited has not occurred any kind of non-cash financing or investing transactions for 2016 financial year. The annual report of JB Hi Fi Limited does not have any statement of non-cash financing or investing activities for the year ended 2016. As per the cash flow statement of the company, it can be seen that all the investing and financing activities of the company has been done on cash basis. In the year 2016, JB Hi Fi Limited had three categories of Investing activities and they are acquisition of non-controlling interest, payment of plant and equipment and proceed from sales. The financing activities includes proceed from issue of share, payment of borrowing, payment for debt issue cost, share issue cost and the payment of dividends. There is not any kind financing or in vesting activities that has been done on non-cash basis. Hence, from the above discussion, it can be concluded that for the year 2016, JB Hi Fi Limited has not incurred any kind of non-cash financing or investing activity (jbhifi.com.au 2017). References Balakrishnan, K., Core, J.E. and Verdi, R.S., 2014. The Relation between reporting quality and financing and investment: Evidence from Changes in Financing Capacity.Journal of Accounting Research,52(1), pp.1-36. Chu, Y., Hirshleifer, D.A. and Ma, L., 2016. The causal effect of limits to arbitrage on asset pricing anomalies. Huang, R., Ritter, J.R. and Zhang, D., 2016. Private equity firms reputational concerns and the costs of debt financing.Journal of Financial and Quantitative Analysis,51(01), pp.29-54. jbhifi.com.au. (2017).ANNUAL REPORT 22016. [online] Available at: https://www.jbhifi.com.au/Documents/2016%20JB%20Hi-Fi%20Annual%20Report_ASX.pdf [Accessed 23 Jan. 2017]. Jbhifi.com.au. (2017).JB Hi-Fi | Australias Largest Home Entertainment Retailer. 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