The following information has been extracted from the financial reports of ABC Ltd.

1. The following information has been extracted from the financial reports of ABC Ltd.   $ Sales 25,000 units @ £20 per unit 500,000 Rent per annum 30,000 Rates per annum 10,000 Insurance per annum 15,000 Overhead costs 10,000 Other variable costs 245,000   Additional information: The annual rent, rates and insurance costs are fixed. It has been estimated that 50% of the overhead costs are variable and 50% are fixed. Required: Show how many units must be sold to break-even using CVP Analysis. How many units must be sold to obtain a profit of $30,000 (Target profit)? Calculate the break-even point (units) if fixed costs (including the fixed cost portion of overhead cost) increased to $70,000. Explain the effects of…

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IML6106 – The trial balance of Greenwoods Limited

SECTION 1 Context: The trial balance of Greenwoods Limited, a company involved in the production of garden equipment, as at 31 March 2019, is given below:   Trial Balance   Debit (£) Credit (£) Allowance for receivable   1,800 Salaries and wages 98,420   Inventory at 1 April 2018 42,300   Dividends paid 3,000   Purchases 473,194   Sales   765,490 Administrative expenses 38,740   General distribution costs 22,225   Reserve   5,600 Land at cost 80,000   Motor vehicles at cost 23,700   Motor vehicles accumulated depreciation at 1 April 2018   10,369 £1 Ordinary Shares   30,000 Retained earnings   28,100 Buildings at cost 92,400   Buildings accumulated depreciation at 1 April 2018   9,240 Bank 23,960   Share…

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ELECTRONIC SPREADSHEET PROJECT – ACG 2021

REQUIRED:   You are required to create a 10-column work sheet that starts with an Unadjusted Trial Balance as of December 31, 2020 and ends with a Balance Sheet as of the same date.  You will also be required to prepare a Balance Sheet, Statement of Retained Earnings, and an Income Statement in good form based on this worksheet.  Ensure that your financial statements are correctly formatted in terms of headings, dollar signs, appropriate spacing and current verses long-term classifications.   Excel’s ability to link portions of the spreadsheet together to achieve your output requirements will prove very helpful in the completion of this assignment.  You are required to use the linkage function to automatically move data from your worksheet to…

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Cash Budget and Flexible Budget

Question 1: – Cash Budget: Estimated sales January February March April May Total Coffee sales (units) 15,000 16,000 17,500 18,000 14,500   Your friend, Chris Coffee, has been running a successful coffee shop for the last couple of years.  He has asked you to put together a cash budget.  His regular accountant was too busy to help, but told Chris his depreciation expense was going to be $1,800 per year, using the straight-line method.  He has supplied you with the following information (above) to help you put together his cash budget. The revenue for a coffee is $5 for a large, $4 for a medium and $3 for a small.  50% of his sales are Large coffees, 25% medium and 25%…

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You plan to take a trip around the world in five (5) years

  Question 1: This question relates to topics 1 and 3 and LO6. a. You plan to take a trip around the world in five (5) years and predict you will need $50,000 for all anticipated costs.  You do not have any current savings but your bank has offered you 3% p.a. compounded monthly on future savings. Assuming you have five (5) full years to reach your goal, calculate the payments you will have to make each month to save the target amount of $50,000. b. Charge Car P/L is considering a project to launch charging stations for electric cars around Australia.  The initial investment is expected to be $100,000,000 and the term of the project is 6 years.  The required…

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You are an investment adviser. One of your clients

You are an investment adviser. One of your clients approaches you for your advice on investing in equity shares of Alpha Company. You have collected the following data:

Earnings per share last year $3.00
Payout ratio 0.40
Return on equity 0.25 from year 1 to 5
Cost of equity capital 0.20

The company plans to increase the payout ratio to 60% after year 5. This payout ratio and the return on equity are expected to prevail till perpetuity.

Required:
Estimate the price of an equity share of this company using an appropriate dividend discount model and advise your client whether they should buy a share of the company.

You are the portfolio manager of a large company that invests

You are the portfolio manager of a large company that invests in many securities including corporate bonds. You have been assigned the task of bond portfolio management. You are provided with the following data in relation to bonds:

Maturity period 8 years
Coupon rate 10%
Par value $1,000
Coupons on bonds are paid annually
Yield to maturity of bonds 8%

Required:

Calculate the Macualay’s duration, modified duration and convexity.

Anna’s Frozen Treats Ltd sells only one product

Question 1: Inventories Anna’s Frozen Treats Ltd sells only one product, a refreshing lemonade ice-block that is very popular during the summer. The company uses the perpetual inventory system for recording its cost of sales. The inventories and purchases for the month of December 2019 are as follows:     December   Purchases Sales Quantity Cost per unit Quantity 1 Beginning inventory 100 1.00 3 Purchase 200 1.30 7 Sales 220 9 Purchase 200 1.80 14 Sales 280 18 Purchase 300 2.00 21 Sales 200 30 Purchase 100 2.20   During the month units were sold for $3.50 per unit.   Required: For the purpose of this question, please ignore GST. Show ALL your workings.    Calculate the cost of goods…

BAO2000 – Anderson is the owner of Motor Parts Pty

Reports to be printed and submitted in PDF format: AGED RECEIVABLES (SUMMARY) AGED PAYABLES (SUMMARY) TRIAL BALANCE (YTD) PROFIT & LOSS STATEMENT BALANCE SHEET BANK RECONCILIATION ACCOUNTS TRANSACTIONS ACCRUAL The assignment requires you to complete the following tasks for the month of  AUGUST using the following financial period : Financial Year 2019- 20   SET UP COMPANY as– Retail – Motor Parts Pty SET UP ACCOUNTS SET UP SALES AND PURCHASES SET UP INVENTORY ITEMS ENTER TRANSACTIONS BANK RECONCILIATION STOCKTAKE END OF PERIOD PROCESSING END OF PERIOD REPORTS Anderson is the owner of Motor Parts Pty .The firm distributes various types of vehicle parts to businesses in the Melbourne area. The company is located at 205 Ballarat Rd, Sydney, 3015,   Ph:…

Schumacher has invented a business simulation called Drivepast

Schumacher has invented a business simulation called Drivepast which can be played on a personal computer. He is considering three different proposals via which to exploit the product. Proposal 1- Sell all the rights in the game to a local computer company, Keypoint Limited. for the sum of E40,000 outright. Proposal 2 – Sell all the rights in the game to Keypoint Ltd. for five annual amounts of E14,000 payable to him on the basis of one payment at the end of the year and the other four at yearly intervals, thereafter. Proposal 3 – Set up a manufacturing company to produce and market the game. Schumacher estimates that the following data would be relevant over a period of the next…

B9MG009 – Managerial Financial Analysis

Question 1 A company makes and sells a single product. At the beginning of Year 1, there are no opening inventories. Variable production cost is $7 per unit and the sales price is $12 per unit. Fixed costs are $4,000 per annum, of which $1,800 are fixed production costs. Units produced and sold are as follows:-   Year 1             Year 2 Units               Units Sales                                        1600              2000 Production                              1800              1800   Required: Prepare an Income Statement in which you calculate the profit in each year and over the two years in total using:- Absorption costing Marginal costing Critically discuss the differences in the Profit calculations   Question 2 Blue Ltd is a technology company and is considering…

ACCT 5507 – You are considering bidding on a project to make new cases

Section 1   You are considering bidding on a project to make new cases for mobile phones. The project details include:  Upfront costs of $350,000 for a new injection-moulding machine. 4 year life $30,000 in yearly pre-tax operating costs Initial investment of $50,000 in working capital Your company has a tax rate of 30% Your company’s required rate of return is 10% At the end of 4 years you can sell the equipment for $30,000 There is no depreciation consideration for this equipment   a. Complete the following table and calculate the net present value for the project costs.   Year Cash Flows PV 0 1 2 3 4                        …