MCC Ltd | |||||
Statement of financial position | |||||
At 31 December 2014 | |||||
2014 $'000 | 2013 $'000 | 2012 $'000 | |||
Current Assets | |||||
Cash | 1600 | 1240 | 1546 | ||
Inventory | 14912 | 11230 | 8230 | ||
Prepayments | 2857 | 1983 | 1568 | ||
Trade Receivables | 3170 | 2352 | 1420 | ||
Total current assets | 22539 | 16805 | 12764 | ||
Non-current assets | |||||
Property, plant and equipment | 14506 | 4120 | 3470 | ||
Long-term receivable | 3420 | 4569 | 5450 | ||
Total non-current assets | 17926 | 8689 | 8920 | ||
Total assets | 40465 | 25494 | 21684 | ||
Current Liabilities | |||||
Trade Payables | 6555 | 5465 | 4554 | ||
Provisions | 7521.2 | 6269.3 | 4500 | ||
Total current liabilities | 14076 | 11734 | 9054 | ||
Non-current liabilities | |||||
Long-term loan payable | 15689 | 5085 | 4084 | ||
Total liabilities | 29765 | 16819 | 13138 | ||
Net assets | 10700 | 8675 | 8546 | ||
Shareholder's equity | |||||
Share capital | 2500 | 2500 | 2500 | ||
Retained earnings | 8200 | 6175 | 6046 | ||
Total Shareholders' equity | 10700 | 8675 | 8546 |
MCC Ltd Income Statement For the Year ended 31 December 2014 |
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Income Statement | 2014 $'000 | 2013 $'000 | 2012 $'000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | 29,366 | 25,605 | 20,073 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 23,321 | 21,919 | 15,930 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 6,045 | 3,686 | 4,143 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 2,422 | 1,521 | 1,209 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory obsolescence | 484 | 531 | 166 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketing expense | 25 | 80 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Administrative expense | 1,434 | 1,136 | 1,334 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 565 | 220 | 150 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expense | 4,930 | 3,488 | 2,894 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit before tax | 1,115 | 198 | 1,249 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax expense | 390 | 69 | 437 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit after tax | 725 | 129 | 812 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exhibit 2: Key ratios identified by the audit team
Notes: |
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1. Current ratio = (Total current assets/Total current liabilities ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. Quick ratio = (Cash + trade receivable)/(total current liabilities) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. Debt to equity ratio = (Total liabilities)/total shareholders' equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. Times interest earned = (profit before interest and tax)/ interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5. Ave. Collection period (days) = 365/[(Net sales)/(Trade receivables balance)] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6. Ave. payment period (days) = 365/[(Cost of Goods sold)/(Trade payables balance)] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7. Days to sell inventory = 365/[(Cost of Goods sold)/(inventory balance)] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8. Gross profit Margin = (Gross profit)/Net Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9. Net profit Margin = (profit after tax)/Net sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Criterion* | Weight (%) |
Evaluation of information (Part A) | 30 |
Use of Existing Knowledge (Part A) | 30 |
Analysis (Part A) | 30 |
Reflection (Part B) | 10 |
Overall | 100 |
* Also refer to the detailed marking rubric below. |
Needs further development | Satisfactory | Well done | Exceeds expectations | Exceedingly high standard | |
Evaluation of Information (Part A) (30 %) |
Often conflates or confuses relevant with marginal information provided in the case study. Information is used with some interpretation/evaluation, but not enough to develop a coherent analysis or synthesis. Analyses and evaluates information to complete a limited range of activities. Analysis and evaluation reflect little expert judgment, intellectual independence, rigour and adaptability. (0-14.5 marks) |
Selects relevant information to address the issues in the case. Identifies logical flaws in the information provided in the case. Analysis and evaluation reflect acceptable level of intellectual independence, rigour, authoritative judgment and adaptability. (15-17.5 marks) |
Selects relevant information to address the issues in the case. Identifies and rectifies logical flaws in the information provided in the case. Information is often selected with interpretation/evaluation to develop a comprehensive critical analysis or synthesis. Evaluates available information, identifies missing information. Analysis and evaluation reflect good intellectual independence, rigour, authoritative judgment and adaptability. (18-20.5 marks) |
Systematically selects relevant information to address the issues in the case. Identifies and rectifies logical flaws in the information provided in the case. Information is often selected with a high level of interpretation/evaluation to develop a comprehensive critical analysis or synthesis. Thoroughly evaluates available information, identifies missing information and makes reasonable assumptions to fill gaps in evidence. Analysis and evaluation reflect a high level of intellectual independence, rigour, authoritative judgment and adaptability. (21-23.5 marks) |
Systematically selects relevant information to address the issues in the case. Identifies and rectifies logical flaws in the information provided in the case. Information is selected with a high level of interpretation/evaluation to develop a comprehensive critical analysis and/or synthesis. Very thoroughly evaluates available information, identifies missing information and makes reasonable assumptions to fill gaps in information needed to address issues in the case. Analysis and evaluation reflect a consistently very high level of intellectual independence, rigour, authoritative judgment and adaptability. (24-30 marks) |
Use of Existing Knowledge (Part A) (30%) |
Often employs knowledge not relevant to the issues in the case, or representing limited points of view/ approaches. Does not synthesise information and/or demonstrate an integrated understanding of auditing. Limited ability to demonstrate satisfactory understanding of theoretical auditing knowledge and professional practice. (0-14.5marks) |
Presents information and knowledge from relevant sources representing various points of view or approaches, demonstrating satisfactory understanding of theoretical auditing knowledge and professional practice. (15-17.5 marks) |
Synthesises complex information and knowledge from relevant sources representing various points of view or approaches, demonstrating good understanding of theoretical auditing knowledge and professional practice. (18-20.5marks) |
Synthesises complex information and knowledge from a range of relevant sources representing various points of view or approaches, demonstrating mastery of theoretical auditing knowledge and understanding of professional practice. (21-23.5marks) |
Synthesises complex information and knowledge from a broad range of relevant sources representing various points of view or approaches, demonstrating a high level of mastery of theoretical auditing knowledge and expert understanding of professional practice. (24-30marks) |
Analysis(Part A) (30%) |
Rarely demonstrates the ability to organise and synthesise complex information to develop ideas. Often lacks reflection on conclusions and professional decisions (0-14.5 marks) |
Organises and synthesises evidence to develop acceptable ideas. Attempts to reflect on advanced concepts and professional auditing practices. Demonstrates attempt of critical analysis and conceptualisation of information provided in the case study. Major conclusions and professional decisions are interprets and justified. (15-17.5 marks) |
Organises and synthesises complex information to develop good ideas. Reflects on advanced concepts and professional auditing practices. Critically analyses and conceptualises information provided in the case study. Interprets and justifies conclusions and professional decisions. (18-20.5 marks) |
Organises and synthesises complex information to develop insightful ideas. Reflects deeply on advanced concepts and professional auditing practices. Critically analyses and conceptualises information provided in the case study. Interprets and justifies conclusions and professional decisions. (21-23.5 marks) |
Organises and synthesises complex information to develop highly insightful ideas. Reflects very deeply on advanced concepts and professional auditing practices. Critically analyses and conceptualises information provided in the case study. Authoritatively and succinctly interprets and justifies conclusions and professional decisions. (24-30 marks) |
Reflection (Part B) (10%) |
Demonstrates little evidence of reflectionon critical thinking and problem solving. (0-4.5 marks) |
Demonstrates evidence of emerging ability to reflect on critical thinking and problem solving. (5 marks) |
Demonstrates good reflection skills with good evidence on both critical thinking and problem solving. (6-6.5marks) |
Demonstrates very good reflection skills with very good evidence on both critical thinking and problem solving. (7-7.5 marks) |
Demonstrates excellent reflection skills with very good evidence on both critical thinking and problem solving. (8-10marks) |
Overall Score | Fail (N) – Less than 50 | Pass (P) – 50 or more | Credit (C) – 60 or more | Distinction (D) – 70 or more | High Distinction (HD) –80 or more |