Question 1 You are an active investor in the securities market and you have established an investment portfolio of two stock A and B five years ago. Required: If your portfolio has provided you with returns of 9.7%, -6.2%, 12.1%, 11.5% and 13.3% over the past five years, respectively. Calculate the geometric average return of the portfolio for this period? Assume that expected return of the stock A in your portfolio is 14.6%. The risk premium on the stocks of the same industry are 5.8%, the risk-free rate of return is 5.9% and the inflation rate was 2.7. Calculate beta of this stock using Capital Asset Pricing Model (CAPM)? Assume that you bought 200 stock B in your portfolio for total…

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Martini Ltd is organised into three divisions: Metro, Regional and Rural. Data for these divisions for the 2020 financial year end were as follows: Metro Regional Rural Production and sales in units 52,500 36,000 35,000 Average selling price per unit $28 $24 $22 Average variable manufacturing cost per unit $12 $10 $8 Average variable selling cost per unit $5 $3.50 $3 Fixed expenses controlled by division managers $325,000 $250,000 $220,000 Fixed expenses allocated to the divisions $200,000 $180,000 $140,000 Common fixed expenses: $160,000   Required: Prepare a profit statement that highlights the performance of the three divisions and the performance of three divisional managers

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Question 1 ABC Ltd was registered on 30 June 2019. The next day, the directors issued a prospectus inviting applicants for 400000 ordinary shares with an issue price of $2. The shares were payable in full on application. By 31 July, the company had received 500000 applications, together with the  application monies. The directors allotted 400000 shares on 1 August and returned the money for additional applications. Required:  Prepare general journal entries to record the above data. Enter the above data into ledgers. Question 2 Jamuna River Ltd purchased a parcel of assets and liabilities comprising a business directly from Lyneham Pty Ltd. The parcel, measured at net fair values, consisted of:  Balance of Accounts:       Plant                               …

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Question 1 Sandox Retail has the following unadjusted trial balance as at 30 June 2020 in the table: Accounts Debit ($) Credit ($) Cash 8,524 Accounts Receivable 7,000 Supplies 15,000 Prepaid Insurance 300 Insurance Expense 600 Equipment 27,000 Accumulated Depreciation 12,000 Other Assets 5,100 Wages Payable 1,500 Accounts Payable 7,500 Income Tax Payable 3,150 Share Capital (3000 shares outstanding all year) 16,000 Retained Profit 10,300 Sales Revenue 95,000 COGS 32,900 Wages Expense 18,000 Supplies Expense 25,680 Income Tax Expense 5,346 Total 145,450 145,450   Required: Prepare an Income Statement for Sandox Retail for the financial year 2019-2020. Prepare a Balance Sheet as of 30 June 2020. Prepare the closing journals for Sandox Retail.   Question 2 Beacon Limited had the following…

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Taylor Ltd, a supplier of music records and equipment, agreed to acquire the business of a rival company, Speedy Ltd, taking over all assets and liabilities as at 1 June 2020.   The price agreed on was $175,000, payable $150,000 in cash and the balance by the issue to the selling company of 25,000 fully paid shares in Taylor Ltd, these shares having a fair value of $1.00 per share.   The trial balances of the two companies as at 1 June 2020 were as follows.     Taylor Speedy   Dr Cr Dr Cr Share capital       1,200,000         300,000 Retained earnings          420,000       184,000   Accounts payable            97,000         325,000 Cash         …

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Today is 1 January 2020. Jake just used $400,000 ($200,000 is from Jake’s own investment and $200,000 is raised by taking a 5-year loan) to purchase a cafe franchise. To operate this business, Jake needs to pay rent, maintenance costs, labour costs and loan repayments. Jake took a 5-year $200,000 loan from MQ bank. Jake needs to make 60 monthly repayment with an amount of $3,800. The loan repayment will be paid by the end of each month. This package has an annual fee of $200. The package fee is paid on 30 June of each year during the following five-year period. The first one will be paid on 30 June 2020. This loan will be fully repaid by the end…

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Scenario Seasonal Delights Catering offer personalised catering to corporate clients. To help cost their jobs they have recently implemented a Job Costing System. The head chef has allocated a costing for ingredients to each menu item to help quickly calculate how much they will spend on materials based on the menu selected by the client. For each job casual staff are employed by the hour as required. You need to help finish off the spreadsheet template that they will use to cost Job 4155 and all future jobs. Start by downloading the assessment workbook from iLearn and copying/moving it to an appropriate folder. When you open the Excel file it is very important that you Enable Macros and Content. You will…

Question 1 Assume that you have $10,000 to invest in a term deposit. In this situation, explain which of the three (3) deposits listed below (a. – c.) you would select if the selection strategy is totally depend on the higher percentage per annum (per year). a 90-day deposit that has a maturity value of $10,250. a 130-day deposit that has a maturity value of $10,390. a 145-day deposit that has a maturity value of $10,420. Question 2  Calculate the opportunity cost of an invoice that specifies the following conditions, as shown below (a. – c.): conditions: 1.25/10, n/30. conditions: 1.25/10, n/60. conditions: 1.5/10, n/60. Question 3 As a small software developer firm, you have approached the AXZ Bank to obtain…

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Question 1 TAKULAH Traders Ltd purchased a machine for $650 000 and there was an accumulated depreciation balance of $110 000 at 30 June 2022. Its fair value is assessed at this time, with its first revaluation as $450 000. The machine’s useful life is expected to be 5 more years and the residual value to be $50 000. On 1 July 2023 the asset’s fair value is $460 000 and the residual value and useful life are expected to be unchanged (that is, there is 4 years of remaining life). Required: Provide the journal entries necessary to account for all the above transactions and events up to 1 July 2023, in accordance with AASB 116 if the revaluation is undertaken.…

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