Accounting and finance for mangers
Check your essay before you submit. See exactly what your professor sees.
See your AI and plagiarism results before your instructor does.Get the exact same report your professor uses. Trusted by 50,000+ students worldwide.
Question 1 (15 marks)
Jetwair Airline is an airline which flies to destinations all over the world. Jetwair Airline experienced strong initial growth but in recent periods the company has been criticised for under-investing in its non-current assets. Extracts from Jetwair Airline’s financial statements are provided below.
The balance sheet as at 30 June is presented below:
2017 $’000
2016 $’000
Current assets
Cash and cash equivalents
9,300
22,100
Trade and other receivable
6,100
6,300
Inventories
580
490
Total current assets
15,980
28,890
Non-current assets
Property, plant and equipment
317,000
174,000
Intangible assets
20,000
16,000
Total non-current assets
337,000
190,000
Total assets
352,980
218,890
Current liabilities
Trade and other receivable
10,480
4,250
6% loan notes
19,440
19,440
Total current liabilities
29,920
23,690
Non-current liabilities
6% loan notes
130,960
150,400
Total liabilities
160,880
174,090
Equity
Equity share
3,000
3,000
Retained earnings
44,100
41,800
Revaluation surplus
145,000
–
Total Equity
192,100
44,800
Total liabilities and equity
352,980
218,890
Other relevant information for Jetwair Airline is presented below:
2017 $’000
2016 $’000
2015 $’000
Revenue
154,000
159,000
Profit from operations
12,300
18,600
Finance costs
(9,200)
(10,200)
Cash generated from operations
18,480
24,310
Total assets
222,360
Total equity
40,000
Required:
a) Calculate the following ratios for the year ended 30 June 2016 and 2017
i. Asset Turnover
ii. Current Ratio
iii. Debt Ratio
iv. Profit Margin
v. Return on Ordinary Equity
vi. Times Interest Earned (7 marks)
b) Comment on the liquidity, profitability and financial stability of Jetwair Airline for the year ended 30 June 2017. (8 marks)
(7 + 6 = 15 marks)
Question 2 (10 Marks)
Ainsworth Enterprises has provided the following estimates relating to the first quarter of 2018.
The cash balance at 1 January 2018 was $19 800.
Required:
Prepare a cash budget for the quarter ending 31 March 2018
Question 3 (10 marks)
Go Green is a business selling worm farm start-up kits for $12 each. This year, Go Green’s fixed costs total $110,000. The variable cost per kit is $7.
Required:
1. Calculate the contribution margin per kit.
1. Calculate the break-even point in number of kits.
1. Calculate the break-even point in sales dollars.
1. Calculate the number of kits Go Green will need to sell in order to earn a profit of $70,000.
1. If the total fixed cost increases to $160,000 next year:
4. Calculate the new break-even point in number of kits.
4. Determine the profit (loss) Go Green will earn if it sells 30,000 kits.
4. Calculate the number of kits Go Green will need to sell to now earn a profit of $70,000
Question 4 (15 marks)
The financial statements for ATT Mart Limited for the financial years ending 30 June 2016 and 2017 are presented below:
ATT Mart Ltd -Balance Sheet as at 30 June…
Assets
2017
2016
Cash
$ 47,320
$ 60,060
Accounts receivable
50,960
25,480
Inventory
69,160
45,500
Property, plant and equipment
127,400
141,960
Accumulated depreciation
(49,140)
(43,680)
Total assets
$245,700
$229,320
Liabilities and Equity
Accounts payable
56,420
78,260
Tax payable
47,320
36,400
Bonds payable
36,400
18,200
Share capital
45,500
45,500
Retained earnings
60,060
50,960
Total liabilities and equity
245,700
229,320
ATT Mart Ltd
Income Statement
for the year ending 30 June 2017
Sales
520,520
Cost of sales
(353,080)
Gross profit
167,440
Selling expenses
(50,960)
Administrative expenses
(16,380)
Interest expense
(12,740)
Total expenses
(80,080)
Profit before tax
87,360
Tax expense
(12,740)
Net profit after tax
74,620
Additional Information:
· Dividends were paid during the year.
· During the year equipment was sold for $18,200 cash. The equipment cost $27,300 originally and had a book value of $18,200 at the time of sale.
· Additional equipment was purchased for cash.
· All depreciation expense is in the selling expense category.
· All operating expenses, except for depreciation, are paid in cash.
· All sales and purchases are on credit.
Required:
Prepare a Statement of Cash Flows using the direct method for ATT Mart Ltd at 30 June 2017. Reconciliation of profit to cash is NOT required. (15 marks)
Essay writing help – Accounting and finance for mangers Online Essay Writing Agency – Essay Solving.
DO MY HOMEWORK NOW!Write my Essay. Premium essay writing services is the ideal place for homework help or essay writing service. if you are looking for affordable, high quality & non-plagiarized papers, click on the button below to place your order. Provide us with the instructions and one of our writers will deliver a unique, no plagiarism, and professional paper.
Get help with your toughest assignments and get them solved by a Reliable Custom Papers Writing Company. Save time, money and get quality papers. Buying an excellent plagiarism-free paper is a piece of cake!
All our papers are written from scratch. We can cover any assignment/essay in your field of study.
