In: Economics
Explain the innovation on China car sales due to Covid-19 impact. (40marks)
In: Operations Management
(a) Prepare a Statement of Cash Flows for the year ended 30 June 2020 using the direct method, ignoring GST.
Show all workings on the Workings page.
(b) Using the relevant information from the question above, identify two (2) specific items (including their values) which causes a difference between Net Profit and Net Cash from Operating Activities and analyse why it causes a difference.
The following financial statements relate to Clarke Ltd for the financial year ended 30 June 2020.
Balance Sheet as at 30 June
| 2020 | 2019 | |
| ASSETS | $ | $ |
| Current Assets | ||
| Cash | 212,500 | 176,000 |
| Accounts Receivable | 100,000 | 200,000 |
| Allowance for Doubtful Debts | (10,000) | (5,000) |
| Inventory | 45,000 | 42,000 |
| Prepaid rent | 5,000 | 2,500 |
| Total current assets | 352,000 | 415,000 |
| Non-Current Assets | ||
| Land | 550,000 | 500,000 |
| Equipment | 900,000 | 800,000 |
| Accumulated Depreciation - Equipment | (650,000) | (560,000) |
| Total non-current assets | 800,000 | 740,000 |
| TOTAL ASSETS | 1,152,500 | 1,155,500 |
| LIABILITIES & EQUITY | ||
| Liabilities | ||
| Accounts Payable | 45,000 | 35,000 |
| Wages Payable | 30,000 | 15,000 |
| Income Tax Payable | 28,000 | 24,000 |
| Loan Payable | -- | 400,000 |
| Total liabilities | 103,000 | 474,000 |
| Owner's Equity | ||
| Share Capital | 750,000 | 500,000 |
| Retained Profits | 249,500 | 181,500 |
| Revaluation Surplus | 50,000 | 0 |
| Total Equity | 1,049,500 | 681,500 |
| TOTAL LIABILITIES AND EQUITY | 1,152,500 | 1,155,500 |
Clarke Limited's Income Statement for the year ended June 2020
| Revenue | $ |
| Net Sales | 750,000 |
| Cost of Sales | 225,000 |
| Gross Profit | 525,000 |
| Expenses | |
| Wage expense | 300,000 |
| Depreciation Expense - Equipment | 90,000 |
| Bad Debt Expense | 10,000 |
| Rent expense | 4,000 |
| Interest expense | 3,000 |
| Total expenses | 407,000 |
| Net Profit Before Tax | 118,000 |
| Income Tax Expense | 35,400 |
| Net Profit After Tax | 82,600 |
Additional information:
Interest expense is classified as an operating cash flow.
The company paid dividends in 2020.
Land was revalued during the 2020 financial year.
In: Accounting
The development of the internal-combustion engine caused fundamental changes in urban land-use patterns. The transformation from the core-dominated city to the modern suburbanized city took only about 50 years. Given the rapid pace of technological change, it seems likely that some future innovation will cause another transformation of cities. Given your knowledge of science fiction and fact, describe an innovation that would cause fundamental changes in the spatial structure of cities
In: Physics
On 15 June 2020 Great Hall Pty Ltd reestablishes the account of one customer and records the collection of $2,200 in full payment of the account that had previously been written off. The present balance of the allowance for doubtful debts account is $1,000 CR.
After the above adjustment, Great Hall Pty Ltd assigns the following probability of uncollectible to each age group of receivables as at 30 June 2020 in the below table.
|
Age category |
Amount as at 30 June 2020 ($) |
Percentage |
Estimated uncollectible as at 30 June 2020 ($) |
|
Not yet due |
146,000 |
||
|
1–30 days overdue |
24,000 |
||
|
31–60 days overdue |
10,000 |
||
|
61–90 days overdue |
6,000 |
||
|
Over 90 days overdue |
2,600 |
||
|
Total |
188,600 |
Required:
Provide journal entries to record the recovery of the bad debt on 15 June 2020, and adjust the closing balance of the allowance for doubtful debts account on 30 June 2020.
In: Accounting
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In: Accounting
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|
Year |
2019 |
2020 |
|||||||||||
|
Net Revenue |
140,000 |
||||||||||||
|
- Cost of Goods Sold |
70,000 |
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- Depreciation Expense |
9,000 |
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EBIT |
61,000 |
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- Interest Expense |
10,500 |
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Income Before Taxes |
50,500 |
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|
Tax Expense |
10,605 |
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Net Income 2019 Dividend |
39,895 9,974 |
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Balance Sheet |
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|
Year (end of) |
2019 |
2020 |
2019 |
2020 |
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Assets |
Liabilities |
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Current Assets |
Current Liabilities |
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|
Cash and Equivalents |
10,000 |
Accounts Payable |
21,000 |
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|
Accounts Receivable |
25,000 |
Long-term Debt |
95,000 |
||||||||||
|
Inventory |
12,000 |
Total Liabilities |
116,000 |
||||||||||
|
Fixed Assets, Net |
165,000 |
Stockholders' Equity |
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|
Total Assets |
212,000 |
Common Stock |
44,000 |
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Retained Earnings |
52,000 |
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Total Stockholders Equity |
96,000 |
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Sales will grow by 10% in 2020. All costs, assets, and
current liabilities vary directly with sales. Interest
Exp., Common Stock, Tax Rate and Div. payout ratio are constant.
L-T Debt=Plug number.
A. Prepare a 2020 forecast. What is the 2020 Dividend and Addition to Retained Earnings?
B. If a bank will allow Atlantic to borrow 2.5 times prior year EBITDA, how much total Long-Term Debt would the bank allow in 2020?
C. What is Atlantic’s Days Accounts Payables in 2020? By how many Days would A/P need to increase to balance the Balance Sheet if Long-Term Debt = $70,000?
In: Accounting
Jeffery Company purchased 10% of the outstanding common stock (75,000 shares) of Another Company on January 1, 2020 for $750,000. The investment was not sufficient to give Jeffery Company the ability to significantly influence the operations of Another Company. On January 1, 2020, the fair value of the percentage of Another Company’s net assets purchased by Jeffery Company exceeded book value by $20,000. The difference was attributable to plant assets with remaining useful life of five years. During 2020, Another Company reported net income of $150,000 and paid dividends of $40,000. The fair value of Another Company’s common stock on December 31, 2020 was $15 per share.
The entry to record the purchase of the stock on January 1, 2020 would include?
The entry to record the dividends Jeffery Company received from Another Company would include? check figure; A credit to investment revenue for $4,000
As a result of the investment, Jeffery Company's income before income tax for the year ended December 31, 2020 would increase by? check figure;$379,000
The entry on December 31, 2020 to recognize changes in fair value would include? check figure: A credit to unrealized holding gain for $375,000
Jeffery Company would report an investment in Another Company on the balance sheet as of December 31, 2020 of?
Please explain in detail the answers I would appreciate the help thanks.
In: Accounting
analyze the unemployment rate and inflation from 2000 - 2010 in the US.
discuss the interest rate fluctuations from 2000 - 2010 in the US
In: Economics
|
2010 |
||
|
Account |
Cost |
Retail |
|
Inv, Jan 1 |
$ 10,000 |
21,000 |
|
Purchases |
19,000 |
34,000 |
|
Freight In |
1,000 |
|
|
Net Markups |
6,700 |
|
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Net Markdowns |
5,100 |
|
|
Net Sales |
23,000 |
|
|
Employee Discounts |
4,000 |
|
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Normal Shortage |
500 |
|
In: Accounting