Wyatt Company has budgeted the following units sales for 2011:

January 10,000 units

February 8,000 units

March 9,000 units

April 11,000 units

May 15,000 units

Data regarding Finished Goods and Raw Materials Inventory is as follows:

FINISHED GOODS:

The finished goods units on hand on December 31, 2010 was 2,000 units. Each unit required 2 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales.

RAW MATERIALS INVENTORY:

They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 5,760 pounds of raw materials on hand at December 31, 2010.

How many units should be produced for the first quarter of 2011?

What is the total cost of direct materials purchases for the first quarter of 2011?

Following data relates to GRD Photo Limited.
GRD Photo Limited
Statement of Financial Position
As of December 31
Share Capital and Reserves (Rs.’000) (Rs. ‘000)
2010 2009
Issued, subscribed and paid up capital 255,000 255,000
Retained earnings 62,000 20,000
317,000 275,000
Non-Current Liabilities
Bonds payable 72,500 -
Current Liabilities
Trade payable 28,000 17,000
Provision for taxation 12,000 5,000
40,000 22,000
Total Liabilities and Equity 429,500 297,000
Non-Current Assets
Equipment 337,000 215,000
Accumulated Depreciation Equipment (20,000) (40,000)
Long-term investments 10,000 55,000
327,000 230,000
Current Assets
Inventory 15,000 10,000
Prepaid expenses 12,000 7,000
Trade receivables 58,000 41,000
Cash and bank balances 17,500 9,000
102,500 67,000
Total Assets 429,500 297,000
Additional Information:
• Long-term investments comprising 'held-to-maturity' securities carried at a cost of Rs.45 million were sold
for Rs.36 million during the year.
• Equipments costing Rs.58 million (carrying value Rs.12 million) were sold for Rs.8 million.
• Financial charges of Rs.8.7 million were paid during the year.
• Net profit after tax for the year ended December 31, 2010 was Rs.52 million.
• Provision for taxation for the year was Rs.28 million.
• Dividends of Rs.10 million were declared and paid by the company during the year.
Required:
Prepare Statement of Cash Flows for the year ended December 31, 2010 using indirect method as per the
requirements of IAS-7. Necessary workings must be shown.

THIS IS ALL THE INFORMATION GIVEN TO DETERMINE THE SOLUTIONS:

The following are two years of income statements and balance sheets for the Munich Exports Corporation.

NEED THE SOULTIONS FOR:

a. Calculate the cash build, cash burn, and net cash burn or build for Munich Exports in 2010

b. Assume that 2011 will be a repeat of 2010. If your answer in Part A resulted in a net cash burn position, calculate the net cash burn monthly rate and indicate the number of months remaining “until out of cash.” If you answer in Part A resulted in a net cash build position, calculate the net cash build monthly rate and indicate the expected cash balance at the end of 2011.

Part I: Reporting and Financial Statement Analysis

Given the following financial statements for Voice-Soft, a voice recognition company, answer the questions on the next page.

Develop Free Cash Flow for 2010 from the income statement, balance sheet and cash flow statement above.

FCF=(NOPAT+D&A) –(investment in fixed assets + change in net operating working capital)

Develop and analyze the results of an extended DuPont equation based on 2009 and 2010.

ROE= return on sales * total asset turnover * equity multiplier = NI/slaes * sales/total asset * total asset/ shareholder equty

Part II: Capital Budgeting and Uses of Financial Statements

Voice-Soft Inc. is trying to determine whether to open a new product line, Voice-Write, a speech-to-text product, which is expected to be competitive for four years. The cost of the new capital equipment including shipping and installation is $3100. The equipment will last for 4 years. They use simple straight line depreciation and the market value of the equipment at the end of the project (or it’s salvage value) is $400. For 2013 to 2016, sales are expected to be $4000, 4000, 4200, and 4200; and operating expenses, $2800, $2800, $2700, $2700. The company is expecting to lose before tax operating income of $200 per year due to Voice-Write cannibalizing its current product, Voice-Speak. Voice-Soft has a tax rate of 40% and a weighted average cost of capital (WACC) of 12%.

Complete the Project cash flow statement below and then answer questions 2 -4.

Determine the Net Present Value.

Determine the IRR.

Should Voice-Soft make the investment and why? Explain any limitations or concerns you may have about the acceptance or rejection of this project.

What impact does acceptance or rejection of this project have on the value of Voice-Soft as a firm and on Voice-Soft’s stock? Explain.

Place the letter of the report type that best fits the language presented on the answer line. Each report type may be used more than once or not at all, but each item has only one best answer. If you think more than one answer may apply, choose the BEST answer.

a. Explanatory language

b. Unqualified opinion with qualification for GAAP departure

c. Qualified opinion

d. Qualified opinion because of a scope limitation

e. Qualified opinion because of an ICFR deficiency

f. Qualified opinion because of a GAAP departure

g. Qualified opinion because of a change in accounting standards

h. Qualified opinion because of lack of independence

i. Qualified opinion plus explanatory language

j. Qualified opinion for dual dating

k. Qualified opinion to reflect need to rely on another auditor

l. Disclaimer of opinion because of a scope limitation

m. Disclaimer of opinion because of lack of independence

n. Adverse opinion

o. Combined report with unqualified opinions on financial statements and ICFR

_____1. In our opinion, the Company did not maintain, in all material respects, effective internal control over financial reporting as of March 31, 2010, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)…

_____2. In addition, as discussed in Note 9 to the consolidated financial statements, effective January 1, 2007, the Company adopted Accounting for Uncertainty in Income Taxes, FASB ASC 740-10.

_____3. We are not independent with respect to XYZ Company, and the accompanying balance sheet as of December 31, 19X1, and the related statements of income, retained earnings, and cash flows for the year then ended. …

_____4. …because of the effects of the matters discussed in the preceding paragraphs, the financial statements referred to above do not present fairly. …

_____5. We have also audited in accordance with the standards of the Public Company Accounting Oversight Board (United States) the company’s internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated August 6, 2011 expressed an unqualified opinion thereon.

_____6. … except for the effects of such adjustments, if any, as might have been determined to be necessary…

_____7. The accompanying financial statements have been prepared assuming that ABC, Inc. will continue as a going concern. As more fully described in Note 1, the Company filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code on January 29, 2010, which raises substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to this matter are also described in Note 1.

_____8. The Company did not make a count of its physical inventory…The Company’s records do not permit the application of other auditing procedures. …the scope of our work was not sufficient to enable us to express. …

_____9. In our opinion, except for the omission of the information discussed in the preceding paragraph….

_____10. In our opinion, based on our audits and the report of other auditors, the financial statements referred to above present fairly, in all material respects…

_____11. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of W Company as of December 31, 2010 and 2009…. Also in our opinion, W Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010. …

_____12. We did not audit the financial statements of B Company, a wholly-owned subsidiary, which statements reflect total assets and revenues constituting 20 percent and 22 percent, respectively of the related consolidated totals. … In our opinion, based on our audit and the report of the other auditors, the consolidated financial statements referred to above present fairly. …

_____13. In our opinion…the financial statements present fairly… Dated February 16, 2010, except for Note 16, as to which the date is March 1, 2010.

_____14. Except as discussed in the following paragraph, we conducted our audits in accordance with auditing standards…. In our opinion, except for the effects…the financial statements present fairly. …

_____15. As discussed in Note X to the financial statements, the 20X2 financial statements have been restated to correct a misstatement.

Do you agree with the idea that “technology shrinks the world?” Discuss.

what are the advantage and disadvantage of using the advanced technology in the field of engineering.

what are the advantage and disadvantage of using the advanced technology in the field of engineering.