Accounting Answers

you are required to analyse the financial statement of the Mauritius Commercial Bank Group for the year 2016 by elaborating on its financial position,financial performance,cash flows and changes in financial position.

What is pension's problem?

ACTIVITY 1:

SALES AND COGS ACTIVITIES FOR 2015

The restaurant sold 54,600 take away meals, and the price per meal was $10.50. The food cost per meal sold was $4.60. Also 20,000 units of soft drinks were sold during the year. Soft drinks are sold for $2.50 and the cost price was $0.80.


Based on the above Sales and COGS activities for 2015;

Prepare a spreadsheet with the average monthly Sales for food and drinks and the average monthly COGS for meals and drinks; in addition include end columns for the annual totals and another with the average quarterly totals.

1.Utopias residents are endowed with 100 labor units and 75 capital units. Idealands residents are endowed with 75 labor units and 50 capital units. which nation is relatively labor abundant and which is relatively capital abundant?
2. Suppose that, at the current level of production, sandwiches require 1 labor unit and 0.5 capital units to produce, while bicycles require 0.9 labor units and 0.9 capital units. Based on this information, which of the two goods is relatively capital intensive in its production process, and which is relatively labor intensive?
3.Answer the following using your answers to question 1 and 2. Suppose utopias and idealands residents begin to trade. Which good will utopias residents export, and which good will utopias residents import? explain your answer in the context of the Heckscher-ohlin theorem.
5.Based on your answer to question 3, explain how free trade between the residents of utopia and idealand benefits or harms workers and the capital holders in the two nations.

Why and how is depreciation expense reported in a statement of cash flows prepared using the indirect method?

Is this potentially confusing to the user of the financials?

What are realized gains/losses?
What are unrealized gains/losses?

When is each kind calculated, and where are they reported on the financial statements?

Do you think the reporting requirements of these gains/losses adds to or detracts from the users' of financial statements understanding of the company?

(a) As a source of long term financing, what are the major advantages of bonds over common stock?
(b) What are the major disadvantages in using bonds for long-term financing?

If you had to somehow acquire new monies for your business, which would you use, stocks or bonds?

Contrast the effects of a cash dividend and a stock dividend on a corporation's balance sheet. Which would you rather receive if you were a stockholder?

How do the financial statements for a corporation differ from the statements for a proprietorship? Do you feel that the general public understands the owner equity section of each type of business?

 Mills Inc. manufacturers 50,000 components per year. The manufacturing cost per unit of the components is as follows:

Direct materials $ 12
Direct labor 13
Variable overhead 5
Fixed overhead 10
Total unit cost $40

An outside supplier has offered to sell the component to Mills Inc. for $35

Required:
a) What is the effect on income if Mills Inc. purchases the component from the outside supplier?
b) Assume that Mills Inc. can avoid $700,000 of the total fixed overhead costs if it purchases the components. Now what is the effect on income if Mills Inc. purchases the component from the outside supplier?