Accounting Answers

Instruction: Form a group having three members. Based on our discussion in class and your
further reading from different Operations Management textbooks provide answer to the
following questions with strong justifications.
Part One: Service Blueprint (5 Marks)
Select any service providing company i.e., hotel, hospital, school, clinic, restaurant, café, beauty
salon, …… Then prepare service blueprint for the company what you have selected. Your
blueprint shall incorporate the following.
A. Show the major physical evidences.
B. Shows customers and employees actions.
C. Indicate the interaction between customers and front-line employees.
D. Indicate the interaction between front-line employees and back stage employees.
E. Show the line of interaction, line of visibility, line of internal interactions.

Walker Co. purchased furniture on February 4, 2012, for $70,000 on account. At that time it was expected to have a useful life of five years and a $1,000 residual value. The furniture was disposed of on January 26, 2015, when the company moved to new premises. Walker Co. uses the diminishing-balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month. The company has a September 30 year end
a) Record the acquisition of the furniture on February 4, 2012
b) Record depreciation for each of 2012, 2013, and 2014
c) Record the disposal on January 26 2015 under the following assumptions:
1. It was scrapped and has no residual value
2. It was sold for $30,000
3. It was sold for $40,000
4. It was traded for new furniture with a catalogue price of $115,000. Walker Co. was given a trade-in allowance of $45,000 on the old furniture and paid the balance in cash. Walker Co. determined that the old furniture’s fair value was $30,000 at the date of the exchange

Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast. They would each benefit if lighthouses were built along the coast where they fish. The mar-ginal cost of building each additional lighthouse is $100. The marginal benefit to Zach of each additional lighthouse is 90 – Q, and the marginal benefit to Jacob is 40-Q, where Q equals the number of lighthouses.
a) Explain why we might not expect to find the efficient number of lighthouses along the coast.
b) What is the efficient number of lighthouses? What would be the net benefits to Zach and Jacob if the efficient number were provided?

Sndi Inc. has following information
Sales Revenue $2,000,000
Cost of goods sold $1,100,000
Operating Expenses $800,000
Average Capital Invested $1,000,000

1. Compute the Firm's sales margin, Capital turnover and ROI?
2. If the sales and average Invested Capital remains the same Next year, to what level would the total expenses have to be changed so as to improve the Firm's ROI to 15%?

if the total cost of the firm is given by TC=Q2+20
A. The average total coast (ATC)
B. The marginal cost (MC)
C. The average variable cost (AVC)
D. The average fixed cost(AFC)

Assuming the quick ratio for a competitor of Queen Company for 2018 is 1.90, comment on
Queen Company’s quick ratio.

Sub:Financial Accounting and analysis
Question:
b. Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the
year ended March31, 2019
Particulars Amount
Plant acquired 160000
Claim received for loss of plant in fire 45500
Unsecured loans given to subsidiaries 595000
Interest on loan received from subsidiary companies 72500
•Also give reasons for the classification of above activities as inflow /outflow

a. Following information is available in respect of a company named, as Beta Ltd
Particulars Amount
Profit before taxes Rs 50 lakhs
Dividend declared per share Rs2
Price of the share prevalent on stock
exchange Rs 200
Applicable tax rate 35%
Share capital of company 5 lakh shares
of Rs 10 each
Calculate-
•Earnings per share
•Dividend Pay-out Ratio
•Price earnings ratio

Sub:Financial Accounting and analysis
Question: Mr. Shil Wants to record the financial transactions of his newly started business.
Discuss what accounting steps/stages he need to adhere so that the transactions can be duly
recorded and processed in order to prepare the financial statements.

Sub:Financial Accounting and analysis

Question: . Wildcat Ltd, a manufacturing company sold a machinery for Rs 8 lacs at the year end.
The company had purchased the machinery four years back for Rs 15 lacs and had
depreciated the same using written down value method of depreciation @ 20%.
As an accounts executive of Wildcat Ltd, calculate the WDV of the asset for the four
years, accumulated depreciation for four years and profit/loss on sale, if any.