BAO2203 – The financial information for Moon Ltd and its 100% owned subsidiary

Another version of this question is available here.   CONSOLIDATIONS AND INTER-COMPANY TRANSACTIONS. The financial information for Moon Ltd and its 100% owned subsidiary, Light Ltd, for the period ended 31 December 2022 is as follows:   Moon Ltd Light Ltd Sales revenue $ 60 000 $ 57 000 Dividend revenue 3 000 0 Gain on sale of property, plant and equipment 3 000 5 000 Other income 4 000 6 000 Total income 70 000 68 000 Cost of sales 45 000 38 000 Other expenses 7 000 4 000 Total expenses 52 000 42 000 Profit before income tax 18 000 26 000 Income tax expense 5 800 6 100 Profit for the period 12 200 19 900 Retained…

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Benedetto Fallica is a manufacturer of fashionable clothing

Benedetto Fallica is a manufacturer of fashionable clothing.  He hired Nadim Youkim as his CFO 5 years ago. Nadim has been happily working at the company for the past 7 years.  Nadim has recently been asked by Benedetto to assess the following manufacturing records from the manufacture of the new clothing line with sales of $2,550,000 Beginning Direct Materials Inventory $45,000 Direct Materials Purchased $756,000 Beginning Work in Progress Inventory $58,500 Beginning Finished Goods Inventory $175,600 Wages paid for direct labourers $456,000 Wages paid to factory supervisors $234,000 P e iden     Sala $450,000 Head office salary costs $350,000 Wages paid for Indirect Labour $23,450 Advertising and marketing expenses $356,000 Electricity used in plant $130,000 Overhead supplies used in plant $23,500 Marketing…

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Tamworth Limited is considering embarking on a new project

Tamworth Limited is considering embarking on a new project. The company has a 30% tax rate and 15% required rate of return. The project involves the introduction of a new product. The project is expected to last five years and then, because this is somewhat of a fad product, it will be terminated.   Cost of new plant and equipment : $9,900,000 Shipping and installation costs     : $100,000 Sales price per unit                      : $280/unit in years 1-4; $180/unit in year 5. Variable cost per unit                   : $140 per unit Annual fixed costs                       : $300,000 Predicted sales for the next five years: Year 1 2 3 4 5 Units sold (number) 70,000 100,000 140,000 70,000 60,000…

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Aero Ltd, Pluto Ltd and Zorba Ltd

Question 1 Impairment of assets 1. Aero Ltd has determined that its aviation division is a cash–generating unit (CGU). Information as at 30th June 2020 is as follows:   $ Buildings – At cost 600,000 Equipment – At cost 500,000 Inventory 25,000 Land 250,000 Receivables 150,000   Goodwill 90,000 Total 1,615,000   Additional information: Buildings – Accumulated depreciation as at 30 June 2020:    $100,000 Equipment – Accumulated depreciation as at 30 June 2020: $200,000 Aero Ltd calculated the value in use for the division to be $515,000 Required:  Calculate the impairment loss as at 30 June 2020: Prepare a table as provided below to allocate the above impairment loss:                        …

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ACST2001 Financial Modelling – Spreadsheet Project Task 1 – S1 2020

One of the measures the Federal Government has developed to help people financially during the corona crisis is to allow them to withdraw money from their superannuation funds. The government, and others, have pointed out that this will have an enormous impact on the retirement balances of those who take up this offer, due to the power of compound interest. Your task is to develop a model which highlights this impact. Your focus is an individual who is contemplating withdrawing money from his or her superannuation fund. Using your spreadsheet, a person should be able to enter their current age, their desired withdrawal amount and their projected earnings rate (as an effective annual rate of interest). The spreadsheet will then present…

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Shelly Cashman Excel 2016 | Modules 1–3 – SAM Capstone Project 1a

Campus Fitness Center Modify a service report and create a chart   GETTING STARTED Open the file SC_EX16_CS1-3a_FirstLastName_1.xlsx, available for download from the SAM website. Save the file as SC_EX16_CS1-3a_FirstLastName_2.xlsx by changing the “1” to a “2”. If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically. With the file SC_EX16_CS1-3a_FirstLastName_2.xlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet. If cell B6 does not display your name, delete the file and download a new copy from the SAM website.   PROJECT STEPS Stella Scott has a work-study position at the fitness center…

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New Perspectives Excel 2016 – Module 9 – SAM Project 1a

The Mobile Vegan FINANCIAL TOOLS AND FUNCTIONS GETTING STARTED Open the file NP_EX16_9a_FirstLastName_1.xlsx, available for download from the SAM website. Save the file as NP_EX16_9a_FirstLastName_2.xlsx by changing the “1” to a “2”. If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically. With the file NP_EX16_9a_FirstLastName_2.xlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet. If cell B6 does not display your name, delete the file and download a new copy from the SAM website.   PROJECT STEPS You are a part-time manager for The Mobile Vegan, a food truck catering to vegan…

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New Perspectives Excel 2019 – Module 10 SAM Project 1b

Corvallis Group Restore ANALYZE DATA WITH POWER TOOLS    GETTING STARTED Open the file NP_EX19_10b_FirstLastName_1.xlsx, available for download from the SAM website. Save the file as NP_EX19_10b_FirstLastName_2.xlsx by changing the “1” to a “2”. If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically. To complete this SAM Project, you will also need to download and save the following data files from the SAM website onto your computer: Support_EX19_10b_History.csv Support_Ex19_10b_Restore.accdb With the file NP_EX19_10b_FirstLastName_2.xlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet. If cell B6 does not display your name, delete the…

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Patterson Manufacturing Company manufactures

Patterson Manufacturing Company manufactures part #52749 for use in its production cycle. The costs per unit for 10,000 units of part #52749 are as follows: Direct materials  $3 Direct labor  $15 Variable overhead  $6 Fixed overhead  $8 Blundell Company has offered to sell Patterson 10,000 units of part #52749 for $30 per unit. If Patterson accepts Blundell’s offer, the released facilities could be used to save $45,000 in relevant costs in the manufacture of part #60657. In addition, $5 per unit of the fixed overhead applied to part #52749 would be totally eliminated. Required: What are the total relevant costs to manufacture part #52749? What are the total relevant costs to buy part #52749? What alternative is more desirable and by…

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ACC512- Helen Croker owns Divine Denim, a growing company making made to measure

Helen Croker owns Divine Denim, a growing company making made to measure, designer denim jeans and jackets. She uses organic yarn-dyed cotton denim of different weights depending on the garment that she is making. Although she prefers to take the measurements herself, she is now making denim clothes for international customers using the self-measuring system she has developed and put online. For her custom clients, she takes measurements or uses the measurements supplied through her customers’ online application. She uses these measurements to alter the pattern for the design chosen by the client. The pattern is sent to the Cutting Department and the cut material then transferred to the Machining Department. Helen has recently expanded into a Ready to Wear (RTW)…

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Barry Bonza is the Managing Director of Bonza Juice Pty. Ltd.

Bonza Juice Pty Ltd Barry Bonza is the Managing Director of Bonza Juice Pty. Ltd. which operates a chain of stores located within major shopping malls.The flagship store is in the Warriewood Shopping Centre on the Northern Beaches of Sydney.The store currently achieves annual sales of $200,000 of fresh fruit juice, $20,000 of canned soft drinks and $15,000 of packaged flavoured milk drinks. Barry is interested in purchasing the Whizzer 2.0 for the Warriewood store, which can produce smoothies in addition to the usual fresh fruit juices.The machine currently sells for $300,000. In order to assess the suitability of the new machine, Barry consulted Barbara Boost from the famous Boost Juice family.Barbara charged $1,000 for her advice.This is immediately fully tax-deductible.…

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Jamie Ltd’s profit before tax for the year ended 30 June 2020 was

Question 1: Topic 1 – Accounting for Company tax Jamie Ltd’s profit before tax for the year ended 30 June 2020 was $172,400. Included in this profit are the following items of income and expense: Amortisation of development costs $12,000 Carrying amount of equipment sold 11,000 Depreciation – building (6%) 15,000 Depreciation – equipment (15%) 15,000 Depreciation – motor vehicle (20%) 5,800 Doubtful debts expense 1,700 Employee benefits expense 7,000 Entertainment expense  3,500 Fines and penalties 4,400 Goodwill impairment 2,000 Insurance expense 1,400 Interest revenue 800 Proceeds on sale of equipment  19,000 Rent revenue 15,000 Royalty revenue (exempt income) 3,000 Warranty expense 7,000   At 30 June, the company’s draft statements of financial position showed the following balances:   2020 2019…

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