代写 ACC00724 (Accounting for Managers) S2, 2016


ACC00724 (Accounting for Managers) S2, 2016
 
ASSIGNMENT 1 (20 MARKS)
 
Question 1                               Total marks for Q1. (10 marks)
 
Financial statements of Nimbin Pty Ltd are presented below:
 
Nimbin P/L
Statement of Financial Position
As at 30 June 2015 and 2016
($000)
 
                                                 2016             2015
 
Current assets
Cash and cash equivalents                        $1,645          $2,110
Accounts receivables (all trades)                       4,100          3,675
Inventories                                          7,000        6,930
                                                 ______  _____
       Total current assets                           12,745          12,715
                                                 ______  ______
Non-current assets                                 
Property, plant and equipment                  17,190          15,330
                                                 _______       ______
       Total non-current assets                    17,190          15,330
                                                 _______       _______
Total assets                                      $29,935 $28,045
                                                 =======     ======
Current liabilities
Payables                                    $5,780          $5,990
                                                 _______       ______
Total current liabilities                       5,780            5,990
                                                 _______       ______
Non-current liabilities  
Interest-bearing liabilities                          9,940            9,450
                                                 _______       _____
       Total non-current liabilities                9,940            9,450
                                                 _______       _______
Total liabilities                                   $15,720 $15,440
                                                 ====== ======
Equity
Share capital                                     $7,700          $7,700
Retained earnings                                6,515          4,905
                                                 _______       _______
Total equity                                      $14,215 $12,605
                                                 ====== ======       
 
 代写 ACC00724 (Accounting for Managers) S2, 2016
Nimbin P/L
Income Statement
As at 30 June 2016
($000)
 
Revenues (net sales)                                $55,000
Less: cost of sales                               35,100
                                                 _______
Gross profit                                        19,900
                                                 _______
Less: Expenses
       Selling and distribution expenses           7,100
       Administrative expenses                       4,970
       Finance costs                                1,560
                                                 ______
       Total expenses                                  13,630
                                                 ______
Profit before income tax                             6,270
       Income tax expense                            1,908
                                                 ______
Profit                                                $4,362
                                                 =====
Nimbin P/L
Statement of changes in Equity
For the year ended 30 June 2016
($000)
 
Share capital
Ordinary (7,200.000 shares)            
Balance at start of period                         $7,200
                                                 ______
Balance at end of period                          7,200
                                                 _______
                                                
Preference (250,000 shares)     
Balance at start of period                         500
                                                 ______
Balance at end of period                          500
                                                 ______
Total share capital                             $7,700  
                                                 ======
 
Retained Earnings
Balance at start of period                         $4,905
Total income for the period                        4,362
Dividends paid – ordinary                        (2,702)
Dividends paid – preference                                  (50)
                                                 ______
Balance at end of period                          $6,515
                                                 ======
Additional information:
Payables include $5,620 (2016) and $5,730 (2015) trade accounts payable; the remainder is accrued expenses. Market prices of issued shares at year-end (2016): Ordinary $12; Preference $6.70.
 
Required:
 

1. Calculate the following ratios for 2016. The industry average for similar businesses is shown. (6 marks)

 
Industry average
1.      Rate of return on total assets                       22%
2.      Rate of return on ordinary equity                        20%
3.      Profit margin                                        4%
4.      Earnings per share                                      45c
5.      Price-earnings ratio                              12.0
6.      Dividend yield                                      5%
7.      Dividend payout                                         70%
8.      Current ratio                                        2.5:1
9.      Quick ratio (acid ratio)                                1.3:1
10.  Receivables turnover                                   13
11.  Inventory turnover                               6
12.  Debt ratio                                            40%
13.  Times interest earned                                  6
14.  Assets turnover                                    1.8
 

2. Given the above industry averages, comment on the company’s profitability, liquidity and use of financial gearing. (4 marks)

 
 
 
Question 2                               Total marks for Q5. (10 marks)
 
 
a)      A local restaurant is noted for its fine food, as evidenced by the large number of customers.  A customer was heard to remark that the secret of the restaurant’s success was its fine chef.  Would you regard the chef as an asset of the business?  If so, would you include the chef on the balance sheet of the business and at what value? Discuss. (2 MARKS)
 
 
b)      Accounting provides much information to help managers make economic decisions in their various workplaces. You are required to provide examples of economic decisions that the following people would need to make with the use of accounting information: (3 MARKS)
□   A manager of human resources
□   A factory manager
□   The management team of an Australian Football League (AFL) club
□   The manager of a second-hand clothing charity
 
 
c) Indicate the effect of each of the following transactions on any or all of the three financial statements of a business: (5 MARKS)
 
1. Statement of financial position
2. Statement of financial performance
3. Statement of cash flows
 
Apart from indicating the financial statements (s) involved, use appropriate phrases such as ‘increase total asset’, ‘decrease equity’, ‘increase income’, ‘decrease cash flow’ to describe the transaction concerned.
 

1. Purchase equipment for cash.
2. Provide services to a client, with payment to be received within 40 days.
3. Pay a liability.
4. Invest additional cash into the business by the owner.
5. Collect an account receivable in cash.
6. Pay wages to employees.
7. Receive the electricity bill in the mail, to be paid within 30 days.
8. Sell a piece of equipment for cash.
9. Withdraw cash by the owner for private use.
10. Borrow money on a long-term basis from a bank.

 
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代写 ACC00724 (Accounting for Managers) S2, 2016