harvey norman and JB hi fi

The main sources of revenue of the Harvey Norman Holdings company Pty ltd. (HVN) is sales revenue from the sales of goods, where other major revenue are from franchise, rent from the third party, interest received which is in increasing trend during 2010 to 2011 to 2012.Revenues come from the sale of products and services. The main expenses are marketing expenses, Administrative expenses, occupancy expenses, distribution expenses, ordinary activities expenses and interest expenses. All the expenses are in increasing trend but there is an excessive amount of expenses in Administrative expenses. In 2011 the profit of HVN was increased of 8% compared to 2010, whereas a steep declined was seen in profit of Harvey Norman Holding during 2011 to 2012 of 37%.The primary reason for the decrease in profit was due to the increase of operating cost and decrease in sales revenue during the year. The company must cut down the operating expenses to increase the profit. Revenues increased a 12% from 2010 to 2011 primarily because of the recovery in the economy. In 2011 to 2012, there was a drop in revenue of 6%. The company health was critical because increase of competitors in the market. The cost of goods sold has been increased of 30% in 2010 to 2011 whereas there was a drop of cost of goods sold in 2011 to 2012 of 5%.This is because of increase and decrease in sales during the two fiscal year. There was no loss in sales of assets in 2012 and 2010 but the HVN bear the gain 2.9 million in 2011. This increase in amortization of intangible assets and other cost is due to the increase in intangible assets from the Perot Systems in Fiscal 2010. Also, the company had a migration to contract manufacturers and closures of certain manufacturing facilities that caused an increase in severance and facility action costs. Next, there was a decrease trend of dividend on common stock in 2011 to 2012 .The Multi step income statement is accurate for HVN to differentiate company generated