Income statement:

Did Sales of Tesla increase (decrease) in the last 3 years of operations? Provide specific amounts and percentage.

Did Net Income of Tesla increase (decrease) in the last 3 years of operations? Provide specific amounts and percentage.

In your opinion, what business activities were responsible for sales growth (decline)?

Do income statements of your company have Cost of Goods Sold? (Hint: Often companies use different terminology when they report COGS, for example Cost of Revenues).

What percentage of Sales does COGS constitute?

Did this percentage increase (decrease) in the last three years of the operations?

Why do you think this happen?

List three other major expenses (after COGS) of the company.

What percentage of sales do they constitute?

Did these percentage increase (decrease) in the last three years of operations?

In your opinion, what business activities were responsible for observed dynamics?

Do you think this was beneficial (detrimental) for your business?

The typical supermarket has 30,000 different products on sale at any given time. The manager of that supermarket must determine not only what mix of products to have on hand but where to locate those products and what price to set on each one at any specific time. Usually, the price is based on a markup on the cost of the item, and the only reason the price is altered is that costs change. When you reserve a hotel room, you find that there are several different prices offered for that same room, depending on whether you work for the government, are a member of AARP or some other organization, are staying more than one night, and so on. Why doesn’t the hotel just offer a single price? These examples illustrate just a few of the many problems confronting businesses in their relations with customers. Companies do not seem to know much about their customers. For instance, companies often base prices on the anecdotal evidence of a few vocal salespeople or product managers. Even Mercedes-Benz, when it was about to launch one of its A-class models in the German market, initially proposed a price tag of DM29,500, based on little more than the belief that DM30,000 was a psychologically important barrier. Consultants point out that price has a disproportionate effect on the bottom line, far more than greater volume or cuts in fixed and variable costs. Assuming that volumes stay constant, a 1 percent price increase produces between an 8 percent and 11 percent improvement in operating profits.

So does this mean that most businesses should raise their prices? Explain your answer.

Are these businesses leaving money on the table—that is, not generating the greatest revenue they could by knowing the customer better?” Explain your answer.

Consider the results from a completely randomized design showing commuting times in three states. Use an appropriate Excel ANOVA tool, to test for any significant differences in commuting times between the three states. Use α = 0.05.

You obtain three samples from three different populations.

Observed genotype frequencies.

Population 1 AA=0.70 ; Aa=0.25 ; aa = 0.05

Population 2 AA=0.35 ; Aa=0.55 ; aa=0.10

Population 3 AA=0.45 ; Aa=0.40 ; aa=0.15

Populations 2 and 3 have no barrier between them. But populations 1 and 2, and populations 1 and 3 have a barrier between them.

What are the FST values between these three pairs of populations?

Horse Heaven Farm began 20X6 with cash of 180,000. During the year, Horse Heaven earned service revenue of 600,000 and collected 480,000 from customers. Expenses for the year totaled 330,000, with 300,000 paid in cash to suppliers and employees. Horse heaven also paid 138,000 to purchase equipment and a cash dividend of 47,000 to shareholders. During 20X6, Horse Heaven borrowed 25,000 by issuing a note payable. Prepare the company's statement of cash flows for the year. Format operating activities by the direct method. Calculate Horse's free cash flow and cash realization ratio.

A car manufacturer is offering the following incentive with any purchase of its new 2019 mid- size sedans at one of its affiliated dealerships. The vehicle sells for $24,000. Free maintenance services for 2 years at the dealership

Assume there are no other promotions running during this time. The car manufacturer estimates that the normal selling price for the maintenance services it will provide to customers, on average, over the two year period under this promotion is $1,000. Assuming the customer pays $24,000 for the vehicle, how much revenue is recognized on the sale date? You can ignore the time value of money.

Wayne’s Workshop shows average revenue per customer of $400. Monthly fixed costs are $40,000. Variable costs in the last month were in total $32,000. During that month the workshop had 1,200 customers.

Required

1.       Calculate the contribution margin ratio.

2.       Calculate the breakeven point.

3.       What was the profit last month?

4.       Prepare an income statement for last month using the contribution format.

5.       What was the operating leverage?

6.       Using the operating leverage formula, calculate the new operating income if sales fall by 5%.

QUESTION 1

KataranaSdnBhd operates a business in the wholesale distribution of consumer products. You are one of the auditors attached to Vijay Salleh& Associates who has been appointed to audit KataranaSdnBhd's financial statements for the financial year ended 31 December 2018. Your team leader has assigned you to review the company's sales system. Your observations are as follows:

Sales Department

The sales department directly receives orders from both regular and new customers. For regular customers, Encik Faizal, who is the sales department assistant processes the order and immediately prepares the delivery order in four copies. The first copy is sent to the customer, second copy to the store, third copy to the accounts department and the fourth copy is retained in the sales department's file. For new customers, the sales manager grants the credit and processes the order after the approval by the higher management.

Warehousing Department

EncikKhairil is the only storekeeper handling the stores department. On receipt of the delivery order from the sales department, he makes the necessary arrangement to deliver the goods to the customers. He prepares the delivery notes in quadruplicate with the customer's details, quantity, specification and rates of the goods delivered. Goods will be delivered to the customers either at the stores or at their site based on the terms in the delivery order. The original copy of the delivery note is given to the customer at the time of delivery. The second copy is given to accounts department, third copy is sent to the sales department and the fourth copy is kept in the store's file.

Accounts Department

The accounts department is headed by Puan Amirah and assisted by a clerk, Encik Muthu and a cashier. On receipt of a copy of the delivery order and delivery note, Encik Muthu raises the invoice and forwards the original copy to the customer. The second copy is sent to the sales departrnent while the third copy is retained in his department's file. All cheques received by the company are handed over to the cashier who will issue serially numbered receipts and the cashier, then, deposits the cheques into the bank.

Encik Muthu, who maintains the sundry debtors' ledger, posts the transactions and prepares monthly schedules of outstanding debtors. If the customer delays payment or made short payment, he will write to them. If the short payment is due to shortage in supply or poor quality of product, Encik Muthu will credit the customer's account with suitable rebate or allowances. Encik Muthu also prepares the bank reconciliation statement once in every three months.

Required:

1. Identify any six (6) internal control weaknesses of the existing sales system of KataranaSdnBhd and describe the potential impact that could occur due to the weaknesses that have been identified.

              Present your answers in the following format:

2. Suggest three (3) improvements that can be made to the internal control system of KataranaSdnBhd that could prevent any potential irregularities in the company.

3. Differentiate between “Internal control’ and “test of control."

For the above data, test the hypothesis that the first reading and the second reading each are greater than 115 mmHg, with an α of 0.05. (Here, combine men and women into one sample: you should have an N of 15) What test would be most appropriate and why? Is the result significant? State your conclusions.