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Jeanine Krah
Erstellt am Montag,  8. August 2016 11:10 IP des Autors 112.203.169.149 Mozilla/5.0 (Windows NT 6.3; WOW64; rv:28.0) Gecko/20100101 Firefox/28.0
Every project is a novel challenge, and the All Seasons Pools team is skilled in asking the right questions,
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All Seasons Pools was opened in 1979 by John and Diane Watts, with the goal of making backyard retreats for
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Orlando Pool Contractor. All Seasons Pools was opened in 1979 by John and Diane Watts, with the goal of
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Best Tampa Pool Contractor. All Seasons Pools was opened in 1979 by John and Diane Watts, with the objective
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ACC00724 (Accounting for Managers)
August 7, 2016 Uncategorized
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ACC00724 (Accounting
for Managers) S2, 2016

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ASSIGNMENT 1
(20 MARKS)

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Question 1
Total marks for Q1. (10 marks)



Financial statements of Nimbin Pty Ltd are presented
below:



Nimbin P/L

Statement of Financial Position

As at 30 June 2015 and 2016

($000)




2016 2015



Current assets

Cash and cash equivalents
$1,645 $2,110

Accounts receivables (all trades)
4,100 3,675

Inventories
7,000 6,930

______ _____

Total current assets
12,745 12,715

______ ______

Non-current assets

Property, plant and
equipment 17,190 15,330

_______ ______

Total
non-current assets 17,190 15,330

_______
_______

Total assets $29,935
$28,045

======= ======

Current liabilities

Payables
$5,780 $5,990

_______ ______

Total current liabilities
5,780 5,990

_______
______

Non-current liabilities

Interest-bearing liabilities
9,940 9,450

_______ _____

Total non-current liabilities
9,940 9,450

_______ _______

Total liabilities
$15,720 $15,440

====== ======

Equity

Share capital
$7,700 $7,700

Retained earnings
6,515 4,905

_______ _______

Total equity
$14,215 $12,605

======
======



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Nimbin P/L

Income Statement

As at 30 June 2016

($000)




Revenues (net sales) $55,000

Less: cost of sales
35,100

_______

Gross profit
19,900

_______

Less: Expenses

Selling and distribution
expenses 7,100

Administrative expenses
4,970

Finance costs 1,560

______

Total expenses
13,630

______

Profit before income tax
6,270

Income tax expense
1,908

______

Profit
$4,362

=====

Nimbin P/L

Statement of changes in Equity

For the year ended 30 June
2016

($000)



Share capital

Ordinary (7,200.000 shares)

Balance at start of period
$7,200

______

Balance at end of period
7,200

_______



Preference (250,000 shares)

Balance at start of period
500

______

Balance at end of period
500

______

Total share capital
$7,700

======



Retained Earnings

Balance at start of period
$4,905

Total income for the period 4,362

Dividends paid
– ordinary (2,702)

Dividends paid – preference
(50)

______

Balance at end of period
$6,515

======

Additional information:

Payables include $5,620 (2016) and $5,730 (2015) trade
accounts payable; the remainder is accrued expenses. Market prices of issued shares at year-end (2016):
Ordinary $12; Preference $6.70.



Required:



Calculate the following ratios for 2016. The
industry average for similar businesses is shown. (6 marks)


Industry average

Rate of return on total
assets 22
%Rate of return on ordinary equity 20
%Profit margin 4
%Earnings per share 45c
Price-earnings
ratio 0
Dividend yield 5
%Dividend payout 70
%Current ratio 5:1
Quick ratio (acid ratio)
3:1
Receivables turnover 13
Inventory turnover 6
Debt ratio 40
%Times interest earned 6
Assets
turnover 8


Given the above industry averages, comment on the company's profitability, liquidity and
use of financial gearing. (4 marks)






Question 2
Total marks for Q5. (10 marks)





A local restaurant is noted for its fine food, as evidenced
by the large number of customers. A customer was heard to remark that the secret of the restaurant's
success was its fine chef. Would you regard the chef as an asset of the business? If so, would you include
the chef on the balance sheet of the business and at what value? Discuss. (2 MARKS)




Accounting
provides much information to help managers make economic decisions in their various workplaces. You are
required to provide examples of economic decisions that the following people would need to make with the use
of accounting information: (3 MARKS)
A manager of human resources
A factory manager
The management team of
an Australian Football League (AFL) club
The manager of a second-hand clothing charity




c) Indicate
the effect of each of the following transactions on any or all of the three financial statements of a
business: (5 MARKS)


Statement of financial position
Statement of financial performance
Statement of
cash flows


Apart from indicating the financial statements (s) involved, use appropriate phrases such as
‘increase total asset', ‘decrease equity', ‘increase income', ‘decrease cash flow'
to describe the transaction concerned.



Purchase equipment for cash.
Provide services to a client,
with payment to be received within 40 days.
Pay a liability.
Invest additional cash into the business by the
owner.
Collect an account receivable in cash.
Pay wages to employees.
Receive the electricity bill in the
mail, to be paid within 30 days.
Sell a piece of equipment for cash.
Withdraw cash by the owner for private
use.
Borrow money on a long-term basis from a bank.


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Geoff Cee
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