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Accounting
You have been asked by management to prepare a report on why the personnel budget has a large negative variance. What information would you include in your report?
When reporting, why is it necessary to provide evidence to support your statements or conclusions?
When reporting, why is it necessary to provide evidence to support your statements or conclusions?
Accounting
What practices should these businesses and those who pay Commonwealth taxes complete?
Accounting
A Makawerete Franchise expects to sell 50,000 big burgers annually. The special burgers can be ordered by packs only, and each pack contains 10 buns. The cost of placing an order is $50, while the storage cost is $0.50 per pack. According to their records the average daily sales of Big Burgers is 137, the maximum-ever daily sales is 250, and the typical minimum sales os 50. Packs with the Big Burgers normally arrive 10 days after the order. In the past the maximum delivery time was 20 days, and the minimum was 7 days.
Required:
a) How much is the EOQ? (5 marks)
b) Calculate the reorder point and explain it briefly. (5 marks)
c) How would the reorder point change, if the permanent safety stock is 100 packs? (5 marks)
d) What problems can arise from “understocking” of the Burgers? (5 marks)
Required:
a) How much is the EOQ? (5 marks)
b) Calculate the reorder point and explain it briefly. (5 marks)
c) How would the reorder point change, if the permanent safety stock is 100 packs? (5 marks)
d) What problems can arise from “understocking” of the Burgers? (5 marks)
Accounting
ABC Corp Ltd has 10 million shares and $600,000 of debt (issues bonds @ 7% p.a.). EBIT is projected to be $3 million. The company tax rate is 20%.Preference shares pay an annual dividend of $100,000. Management is considering two options for capital restructure:
Option 1: The Company would borrow $3.5 million at 8% interest rate and use the proceeds to engage in share repurchase program for 3.5 million shares at the current market price of $1.
Option 2: Company can raise $3.5 million by issuing new shares at the current market price of $1.
Required:
a) What is the current EPS for shareholders? (5 marks)
b) What will be the EPS after the change in capital structure under option 1 and option 2? Hint: show full working from EBIT to Net Profit (12 marks)
Option 1: The Company would borrow $3.5 million at 8% interest rate and use the proceeds to engage in share repurchase program for 3.5 million shares at the current market price of $1.
Option 2: Company can raise $3.5 million by issuing new shares at the current market price of $1.
Required:
a) What is the current EPS for shareholders? (5 marks)
b) What will be the EPS after the change in capital structure under option 1 and option 2? Hint: show full working from EBIT to Net Profit (12 marks)
Accounting
A Makawerete Franchise expects to sell 50,000 big burgers annually. The special burgers can be ordered by packs only, and each pack contains 10 buns. The cost of placing an order is $50, while the storage cost is $0.50 per pack. According to their records the average daily sales of Big Burgers is 137, the maximum-ever daily sales is 250, and the typical minimum sales os 50. Packs with the Big Burgers normally arrive 10 days after the order. In the past the maximum delivery time was 20 days, and the minimum was 7 days.
Required:
a) How much is the EOQ? (5 marks)
b) Calculate the reorder point and explain it briefly. (5 marks)
c) How would the reorder point change, if the permanent safety stock is 100 packs? (5 marks)
d) What problems can arise from “understocking” of the Burgers? (5 marks)
Required:
a) How much is the EOQ? (5 marks)
b) Calculate the reorder point and explain it briefly. (5 marks)
c) How would the reorder point change, if the permanent safety stock is 100 packs? (5 marks)
d) What problems can arise from “understocking” of the Burgers? (5 marks)
Accounting
Margetis Inc. carries an average inventory of $750,000. Its annual
sales are $10 million, its cost of goods sold is 75% of annual sales,
and its average collection period is twice as long as its inventory
conversion period. The firm buys on terms of net 30 days, and it pays
on time. Its new CFO wants to decrease the cash conversion cycle by 10
days, based on a 365-day year. He believes he can reduce the average
inventory to $647,260 with no effect on sales. By how much must the
firm also reduce its accounts receivable to meet its goal in the
reduction of the cash conversion cycle?
sales are $10 million, its cost of goods sold is 75% of annual sales,
and its average collection period is twice as long as its inventory
conversion period. The firm buys on terms of net 30 days, and it pays
on time. Its new CFO wants to decrease the cash conversion cycle by 10
days, based on a 365-day year. He believes he can reduce the average
inventory to $647,260 with no effect on sales. By how much must the
firm also reduce its accounts receivable to meet its goal in the
reduction of the cash conversion cycle?
Accounting
1. Explain the procedures you might need to follow to access the financial data and plans necessary for efficient operation of a team/ section/ division.
2.Operational staff are the people actually doing the job in each of the cost centres. These people are in the best position to identify problems, constraints or issues relating to current job costing budgets and to advise financial personnel of requirements for future budgets—to help prioritise resource needs for the next job costing exercise. They should be included in consultative processes for advising on cost information when formulating budgets.
Comment on this statement and the implications for expense in the organisation.
2.Operational staff are the people actually doing the job in each of the cost centres. These people are in the best position to identify problems, constraints or issues relating to current job costing budgets and to advise financial personnel of requirements for future budgets—to help prioritise resource needs for the next job costing exercise. They should be included in consultative processes for advising on cost information when formulating budgets.
Comment on this statement and the implications for expense in the organisation.
Accounting
List and describe the benefits and application of the methods for presenting and formatting financial data.
Accounting
Explain in 180–220 words what is meant by expenditure and revenue and identify five items relevant to budgeting and forecasting activities
Accounting
comments on a consolidated profit and loss account.
