Seagull Publishers Case Study - Accounting & Finance Assignment Help

Assignment Task

Seagull Publishers
Jonathan Eagleton has recently purchased Seagull Publishers from his parents-in-law. Jonathan looked at the profitability of the sole trader enterprise before he purchased and was satisfied that Seagull Publishers is a viable business. However now that he has taken over, he is overwhelmed by the problems which he did not know about and has asked you for advice.
Attached you will find the Annual Financial Statements for the financial year ended 31 December 2020. You will also find the Sales Budget for the period January 2021 – December 2021.
Jonathan has noted that liquidity is a major concern for the business. He has therefore done some investigations regarding the debtor’s department and found the following:
There are currently four employees in the debtor’s department:
1. Sue Whitelby – Jonathan’s mother-in-law who is retiring with effect from 31 May 2021. (salary cost to company £3 500 per month)
2. Quin Du Toit - resigned with effect from 30 June 2021 (salary cost to company £2 500 per month)
3. Dan Mbeki – a full time employee (salary cost to company £2 800 per month)
4. Nadia Govender – a full time employee (salary cost to company £2 400 per month)
The system has not changed in the last 50 years. It is essentially a manual system. Debtor’s invoices are all written up by hand by the sales team, a sales journal book is written up and this is then sent to the bookkeeper who enters the totals into the accounting software. The invoice books are retained by the debtor’s department and passed around between the four members of the department, as they are each responsible for certain debtors. Month-end debtors’ statements are then all drawn up from these invoices on a spreadsheet and posted via the local mail service. In order for these statements to be prepared information must also be received on who has paid (from Jonathan’s father-in-law, who is also retiring) and any credit notes issued. Jonathan suspects that many of the invoices are erroneously omitted from the debtors’ statements.
Jonathan is looking into a decision to change the way in which the debtor’s department operates which will have the following consequences:
A. Seagull Publishers will not employ anyone new when Sue and Quin leave. Instead, the company will send Dan and Jo on training to learn how to use the accounting system to send out statements via email. The training will cost £1 200 per person. Jonathan has estimated that this will cut down on the work in the debtor’s department and he will be able to eliminate the salary expenditure of the employees who are leaving.
B. It will be necessary to buy two new computer systems at a cost of £600 each.
C. Stationery and postage are currently budgeted at £190 per month for the department; this is estimated to decrease by 80%.
D. Jonathan is aiming for the debtors’ collection to be improved to the extent that the percentages are 30 days 60%, 60 days 30%, 90 days 7% and bad debts decreased to 3%.

This Accounting & Finance Assignment has been solved by our Accounting & Finance 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.
Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.