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Accounting
A restaurant bought on the first of January 400 bottles of vine at a price of 40 DKK per bottle.
Payment condition was current month + 15 days. After the first quarter it appeared that the sales in January were 100 bottles, sales in February 125 bottles and the sales in March were 175 bottles .All bottles of wine were sold at a price of 150 DKK each.
Prepare a profit and loss statement
Payment condition was current month + 15 days. After the first quarter it appeared that the sales in January were 100 bottles, sales in February 125 bottles and the sales in March were 175 bottles .All bottles of wine were sold at a price of 150 DKK each.
Prepare a profit and loss statement
Accounting
The following analysis of the cash transactions for the year was gathered from the incomplete records of N. Carroll, a merchant:Receipts:
Received from sundry debtors
300 000
Additional investment of capital
45 000
Payments:
Payments to sundry creditors
185 000
General expenses
50 000
Wages
77 500
Drawings
95 000
1 Jan.
31 Dec.
Balances:
R
R
Bank overdraft
37 000
–
Debtors
265 000
440 000
Creditors
75 000
97 500
Stock
85 000
95 000
Plant and machinery
100 000
100 000
Furniture and fittings
7 000
7 000Additional information:
Provision must be made for:
1. Depreciation:
10% p.a. on plant and machinery (straight-line)
5% p.a. on furniture and fittings (straight-line)
2. Bad debts provision:
5% p.a. on sundry debtors
Required
(a) Draw up the income statement of N. Carroll for the year ended 31 December 2000.
(b) Prepare the balance sheet of N. Carroll at 31 December 2000.
Received from sundry debtors
300 000
Additional investment of capital
45 000
Payments:
Payments to sundry creditors
185 000
General expenses
50 000
Wages
77 500
Drawings
95 000
1 Jan.
31 Dec.
Balances:
R
R
Bank overdraft
37 000
–
Debtors
265 000
440 000
Creditors
75 000
97 500
Stock
85 000
95 000
Plant and machinery
100 000
100 000
Furniture and fittings
7 000
7 000Additional information:
Provision must be made for:
1. Depreciation:
10% p.a. on plant and machinery (straight-line)
5% p.a. on furniture and fittings (straight-line)
2. Bad debts provision:
5% p.a. on sundry debtors
Required
(a) Draw up the income statement of N. Carroll for the year ended 31 December 2000.
(b) Prepare the balance sheet of N. Carroll at 31 December 2000.
Accounting
The following account balances are taken from the books of Country Club on 31 December 2017. Revenues and expenses are for the year ended 31 December 2017. The retained profits balance is as at 1 January 2017.
Account
Value ($)
Accounts Receivable
29806
Accounts Payable
25280
Promotional Expense
54742
Cash
5028.2
Food Sales
15611
Cost of food sold
13798
Dividend payments
8209
Electricity Expense
6432
Furniture and fittings
42,500
Inventory
22,500
Land and buildings
75,000
Bank loan payable
43,750
Equipment
51,250
Rent expense
40546
Retained profits (1 January 2017)
74022
Share capital
75,000
Membership revenue
103263
Calculate the retained earnings for the year ended 31 December 2017.
Account
Value ($)
Accounts Receivable
29806
Accounts Payable
25280
Promotional Expense
54742
Cash
5028.2
Food Sales
15611
Cost of food sold
13798
Dividend payments
8209
Electricity Expense
6432
Furniture and fittings
42,500
Inventory
22,500
Land and buildings
75,000
Bank loan payable
43,750
Equipment
51,250
Rent expense
40546
Retained profits (1 January 2017)
74022
Share capital
75,000
Membership revenue
103263
Calculate the retained earnings for the year ended 31 December 2017.
Accounting
Henry purchased equipment with a cost of $225557 on 1 July 2016. The equipment has an estimated life of 10 years or 108389 units of product. The estimated residual value is $27202. During 2016/17, 14633 units of product were produced with this machinery. Calculate the amount of total accumulated depreciation at 30 June 2017, using units-of-activity depreciation
Accounting
The balance sheet of a sole trader revealed the following position.
Fixed Assets
Land and buildings
R
9 170
R
Equipment at cost less depreciation 15 570
Goodwill at cost less amounts written off 10 250 34 990
Investment in shares at cost 2 200
Current Assets
R
R
Trading stock
45 840
Sundry debtors less bad debts written off
19 350
Cash at bank
10 920
76 110
113 300
=
A
Less: Current Liabilities
R
Sundry creditors and accruals
77 600
=
L
35 700
Owner's Interest
R
R
Capital
28 400
Profit for the year
7 300
35 700
=
0
Required
Answer the following questions:
(a) Are the assets correctly classified? If not, re-arrange them and give your reasons for doing this.
(b) What is the current ratio? Is it satisfactory?
(c) What is the acid-test ratio? Is it satisfactory?
(d) Is the business solvent? Give your reasons.
(e) Is the business overtrading? Give your reasons.
(f) What is the profitability ratio of the business?
Fixed Assets
Land and buildings
R
9 170
R
Equipment at cost less depreciation 15 570
Goodwill at cost less amounts written off 10 250 34 990
Investment in shares at cost 2 200
Current Assets
R
R
Trading stock
45 840
Sundry debtors less bad debts written off
19 350
Cash at bank
10 920
76 110
113 300
=
A
Less: Current Liabilities
R
Sundry creditors and accruals
77 600
=
L
35 700
Owner's Interest
R
R
Capital
28 400
Profit for the year
7 300
35 700
=
0
Required
Answer the following questions:
(a) Are the assets correctly classified? If not, re-arrange them and give your reasons for doing this.
(b) What is the current ratio? Is it satisfactory?
(c) What is the acid-test ratio? Is it satisfactory?
(d) Is the business solvent? Give your reasons.
(e) Is the business overtrading? Give your reasons.
(f) What is the profitability ratio of the business?
Accounting
You have been requested by the shareholders to prepare a detailed report analysing the financial performance and financial position of COPPERBELT ENERGY CORPORATION PLC for the year ended 31st December 2018. The Annual Report and Accounts for Copperbelt Energy Corporation Plc are on the website(https://cecinvestor.com/cec-2018-annual-report-erratum/).
REQUIRED: Prepare a REPORT to the shareholders providing a detailed analysis of the Financial performance and Financial Position of CEC company based on the ratios calculated and any other relevant information from the Annual Report:
REQUIRED: Prepare a REPORT to the shareholders providing a detailed analysis of the Financial performance and Financial Position of CEC company based on the ratios calculated and any other relevant information from the Annual Report:
Accounting
BIT Bank (in millions) Assets： Reserves $48 Loans $360 Liabilities： Deposits $340 Bank Capital $68 NAT Bank (in millions) Assets Reserves $48 Loans $360 Liabilities Deposits $400 Bank Capital $8 Assume that both BIT Bank and NAT Bank have the same net profit after tax of $8 million a. Which bank (Bank BIT or Bank NAT) is riskier in case of loan depreciation at $60 million? Explain. Show your calculations to explain your answers.
Expert's answer
Expert's answer
Accounting
BIT Bank (in millions) Assets： Reserves $48 Loans $360 Liabilities： Deposits $340 Bank Capital $68 NAT Bank (in millions) Assets Reserves $48 Loans $360 Liabilities Deposits $400 Bank Capital $8 Assume that both BIT Bank and NAT Bank have the same net profit after tax of $8 million
a. Which bank (Bank BIT or Bank NAT) is riskier in case of loan depreciation at $60 million? Explain. Show your calculations to explain your answers.
a. Which bank (Bank BIT or Bank NAT) is riskier in case of loan depreciation at $60 million? Explain. Show your calculations to explain your answers.
Accounting
Question 2
The following details appeared in the final accounts of a sole trader's business.
Current assets
R
8 400
Current liabilities 4 000
Gross profit 5 000
Net profit 2 400
Purchases 16 000
Sales 21 000
Capital 30 000
The opening and closing stocks, being identical figures, are not shown.
Required
Answer the following questions:
(a) What is the ratio between current assets and current liabilities, and
is it a satisfactory one?
(b) What is the percentage gross profit on turnover?
(c) What is the average mark-up percentage on purchases?
(d) What is the capital yield to the owner expressed as a percentage?
(e) Would the owner do better by investing his capital in a building
society at 2
7 1 % per annum? (15)
The following details appeared in the final accounts of a sole trader's business.
Current assets
R
8 400
Current liabilities 4 000
Gross profit 5 000
Net profit 2 400
Purchases 16 000
Sales 21 000
Capital 30 000
The opening and closing stocks, being identical figures, are not shown.
Required
Answer the following questions:
(a) What is the ratio between current assets and current liabilities, and
is it a satisfactory one?
(b) What is the percentage gross profit on turnover?
(c) What is the average mark-up percentage on purchases?
(d) What is the capital yield to the owner expressed as a percentage?
(e) Would the owner do better by investing his capital in a building
society at 2
7 1 % per annum? (15)
Accounting
The Annual Report and Accounts for Copperbelt Energy Corporation Plc are on the website(https://cecinvestor.com/cec-2018-annual-report-erratum/).
e) Calculate the following ratios for 2018 and 2017:
Liquidity Ratios: - Current ratio
- Cash Ratio
- Acid test ratio
Profitability: - Gross Profit %
- Operating profit %
Investment ratios:
- Return on Total Assets(ROA) based on the formula Profit before
tax/Revenue
- Return on Equity(ROE) based on the formula Profit before tax/Total Equity
Efficiency ratios: Debtor collection period/debtors days
Stock days
Creditor payment period/creditor days
Financing/capital structure:
• Interest Cover Ratio
• Total liabilities to Total Equity Ratio
e) Calculate the following ratios for 2018 and 2017:
Liquidity Ratios: - Current ratio
- Cash Ratio
- Acid test ratio
Profitability: - Gross Profit %
- Operating profit %
Investment ratios:
- Return on Total Assets(ROA) based on the formula Profit before
tax/Revenue
- Return on Equity(ROE) based on the formula Profit before tax/Total Equity
Efficiency ratios: Debtor collection period/debtors days
Stock days
Creditor payment period/creditor days
Financing/capital structure:
• Interest Cover Ratio
• Total liabilities to Total Equity Ratio
