+61480015851
Financial Accounting - Accounting And Financial Management Assignment Help
Download Solution
Order New Solution
Internal Code: 3AJDI
Required: Study the cash flow statement and answer the questions that follow:
1.1.1 Calculate the cash balance as at 31 December 2016 if there was a bank overdraft of R10000 on 31 December 2017.
1.1.2 Explain why depreciation was included in computing the cash flow from operating activities.
1.1.3 The long term loan was increased on 01 July 2017. Explain whether it was prudent for the company to have taken the loan.
1.1.4 Suggest FOUR (4) ways in which the company can improve its liquidity.
1.2 Study the extracts of the cash flow statement of Lucky Limited for the year ended 30 June 2017 and answer
the questions that follow:
Extracts of Cash Flow Statement for the year ended 30 June 2017
QUESTION 2
INFORMATION
Excerpts of financial statements of Davidson Limited for 2017 are as follows:
Required: 2.1 Use the information provided to calculate the following ratios for 2017. Where applicable, round off
answers to two decimal places.
2.1.1 Operating margin
2.1.2 Debtor collection period
2.1.3 Return on assets
2.1.4 Return on equity
2.1.5 Earnings retention ratio
2.1.6 Acid test ratio
QUESTION 3 Vampire Ltd plans to manufacture a new wheel spanner and the following information is applicable
Required: Answer the following questions independently. 3.1 Calculate the break-even quantity. 3.2 Calculate the break-even value. 3.3 Calculate the total contribution margin and operating profit/loss. 3.4 Calculate the selling price per unit if the profit per unit is R3. 3.5 Calculate the new break-even quantity and value if the selling price is decreased by 20%,
QUESTION 4
4.1 Lumin Fashioners is considering extending credit to some customers who may be at risk (defaulting in
payment). Sales will increase by R650 000 if credit is granted to these customers. From the new accounts receivable generated, 12% is expected to be uncollectible. Additional collection costs will be 4% of sales, and the production and selling costs will be 70% of sales. The firm is in the 30% tax bracket.
Required:
4.1.1 Calculate the incremental profit/loss after tax.
4.1.2 Determine the incremental return on sales if these new credit customers are accepted.
4.1.3 Briefly explain any 3 methods used to collect overdue accounts.
4.2 Webster Ltd, a supplier of children's toy cars, inventory records are presented in the table below:
Required: Calculate the value of closing inventory as at 31 December 2017 and gross profit for the year ended 31 December 2017 using the weighted average cost method.
2. Cash transactions: - 40% of all sales are for cash. -35% of all purchases are for cash.
3. Collections for credit sales are as follows: - 20% is collected in the month of the sale and a 2% discount is granted on these collections. -60% is collected in the month following the month of sale. - 15% is collected in the second month following the month of sale.
4. Dunedin (Pty) Ltd will make an investment of R90 000 in fixed deposit on 01 April 2018. Interest of R1 500 per month is expected to be received from 30 April 2018.
5. Creditors are paid 2 months after the date of invoice.
6. Rent expense amounts to R18 000 per month and is payable on the first day of each month.
7. Wages will be increased by 10% in April 2018 and will increase by a further 5% in May 2018,
8. A new machine is expected to be purchased for R36 000 cash in May 2018,
9. Commission is paid to sales personnel in the month following the month in which it was earned.
10. On 31 March 2018, Dunedin (Pty) Ltd had a bank overdraft of R5 000.
Required: Use the information provided to:
5.1 Prepare a debtors collection schedule for April and May 2018.
5.2 Prepare the Cash budget for April and May 2018
Financial Accounting - Accounting And Financial Management Assignment
Task: QUESTION 1 1.1 The cash flow statement for Bevlet Ltd is provided below:
Required: Study the cash flow statement and answer the questions that follow:
1.1.1 Calculate the cash balance as at 31 December 2016 if there was a bank overdraft of R10000 on 31 December 2017.
1.1.2 Explain why depreciation was included in computing the cash flow from operating activities.
1.1.3 The long term loan was increased on 01 July 2017. Explain whether it was prudent for the company to have taken the loan.
1.1.4 Suggest FOUR (4) ways in which the company can improve its liquidity.
1.2 Study the extracts of the cash flow statement of Lucky Limited for the year ended 30 June 2017 and answer
the questions that follow:
Extracts of Cash Flow Statement for the year ended 30 June 2017
QUESTION 2
INFORMATION
Excerpts of financial statements of Davidson Limited for 2017 are as follows:
Required: 2.1 Use the information provided to calculate the following ratios for 2017. Where applicable, round off
answers to two decimal places.
2.1.1 Operating margin
2.1.2 Debtor collection period
2.1.3 Return on assets
2.1.4 Return on equity
2.1.5 Earnings retention ratio
2.1.6 Acid test ratio
QUESTION 3 Vampire Ltd plans to manufacture a new wheel spanner and the following information is applicable
Required: Answer the following questions independently. 3.1 Calculate the break-even quantity. 3.2 Calculate the break-even value. 3.3 Calculate the total contribution margin and operating profit/loss. 3.4 Calculate the selling price per unit if the profit per unit is R3. 3.5 Calculate the new break-even quantity and value if the selling price is decreased by 20%,
QUESTION 4
4.1 Lumin Fashioners is considering extending credit to some customers who may be at risk (defaulting in
payment). Sales will increase by R650 000 if credit is granted to these customers. From the new accounts receivable generated, 12% is expected to be uncollectible. Additional collection costs will be 4% of sales, and the production and selling costs will be 70% of sales. The firm is in the 30% tax bracket.
Required:
4.1.1 Calculate the incremental profit/loss after tax.
4.1.2 Determine the incremental return on sales if these new credit customers are accepted.
4.1.3 Briefly explain any 3 methods used to collect overdue accounts.
4.2 Webster Ltd, a supplier of children's toy cars, inventory records are presented in the table below:
Required: Calculate the value of closing inventory as at 31 December 2017 and gross profit for the year ended 31 December 2017 using the weighted average cost method.
- NB. Use the format of the Statement of Comprehensive Income to present your answer.
2. Cash transactions: - 40% of all sales are for cash. -35% of all purchases are for cash.
3. Collections for credit sales are as follows: - 20% is collected in the month of the sale and a 2% discount is granted on these collections. -60% is collected in the month following the month of sale. - 15% is collected in the second month following the month of sale.
4. Dunedin (Pty) Ltd will make an investment of R90 000 in fixed deposit on 01 April 2018. Interest of R1 500 per month is expected to be received from 30 April 2018.
5. Creditors are paid 2 months after the date of invoice.
6. Rent expense amounts to R18 000 per month and is payable on the first day of each month.
7. Wages will be increased by 10% in April 2018 and will increase by a further 5% in May 2018,
8. A new machine is expected to be purchased for R36 000 cash in May 2018,
9. Commission is paid to sales personnel in the month following the month in which it was earned.
10. On 31 March 2018, Dunedin (Pty) Ltd had a bank overdraft of R5 000.
Required: Use the information provided to:
5.1 Prepare a debtors collection schedule for April and May 2018.
5.2 Prepare the Cash budget for April and May 2018
This Financial Accounting - Accounting And Financial Management Assignment has been solved by our Financial and accounting experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.