You have the following financial statements for two building companies and have been asked to compare them:
Income statements for the year to 31st December 2019
|
Potts Ltd |
Tony Ltd |
|
|
£`000 |
£`000 |
|
|
Sales |
3500 |
3880 |
|
Cost of Sales |
(900) |
(1000) |
|
Gross Profit |
2600 |
2880 |
|
Operating expenses |
(560) |
(790) |
|
Operating Profit |
2040 |
2090 |
|
Interest Payable |
(57) |
(76) |
|
Profit Before Taxation |
1983 |
2014 |
|
Taxation |
(80) |
(68) |
|
Profit After Taxation |
1903 |
1946 |
|
Dividends |
(35) |
(42) |
|
Retained Profits |
1868 |
1904 |
Statements of financial position as at 31st December 2019
|
Potts Ltd |
Tony Ltd |
|
|
£`000 |
£`000 |
|
|
Non-current assets |
3,056 |
3,768 |
|
Current assets |
||
|
Inventories |
350 |
245 |
|
Trade receivables |
270 |
257 |
|
Cash at bank |
120 |
80 |
|
Less: Current liabilities |
||
|
Trade payables |
(70) |
(65) |
|
Taxation |
(68) |
(42) |
|
Non current liabilities |
||
|
Long-term loan |
(800) |
(1000) |
|
Net assets |
2,858 |
3,243 |
|
Shareholders' funds |
||
|
£1 ordinary shares |
700 |
800 |
|
Retained earnings |
2,158 |
2,443 |
|
2,858 |
3,243 |
Additional information:
Required:
[30 marks]
|
Amy Ltd: comparison to previous year |
|||
|
2017 |
2018 |
2019 |
|
|
Accounts receivable |
1.20% |
8.2% |
7.4% |
|
Inventory |
8.4% |
1.7% |
4.9% |
|
Sales |
-3.0% |
1.2% |
5.4% |
|
Non-current assets |
2.3% |
4.8% |
7.6% |
|
Borrowings |
3% |
9.8% |
19.8% |
Required: provide a brief report on the results of the analysis? Comments should include any concerns you may have.
(Maximum word count: 100)
In: Accounting
Question 9
Bluebell Ltd provides credit services. Bluebell Ltd provides its employees with long service leave entitlements of 13 weeks of paid leave for every 10 years of continuous service. As the company has been operating for only 5 years, no employees have become entitled to long service leave. However, the company recognises a provision for long service leave using the projected unit credit approach required by AASB 119/IAS 19. The following information is obtained from Bluebell Ltd's payroll records and actuarial reports for the non-managerial staff of its debt collection business at 30 June 2019.
| Unit credit (years) |
No. of employees |
% expected to become entitled |
Average annual salary $ |
No. of years until vesting |
Yield on govt. corporate bonds % |
|||||
| 1 | 100 | 20 | 78,000 | 9 | 8 | |||||
| 2 | 80 | 26 | 80,000 | 8 | 8 | |||||
| 3 | 50 | 35 | 82,000 | 7 | 4 | |||||
| 4 | 40 | 50 | 84,500 | 6 | 7 | |||||
| 5 | 25 | 70 | 87,600 | 5 | 4 |
| Additional information | ||
| (a) | The estimated annual increase in retail wages is 6% p.a. for the next 10 years, reflecting Bluebell Ltd's policy of increasing salaries of its debt collection staff for each year of additional experience. | |
| (b) | At 30 June 2018, the provision for long service leave for non-managerial debt collection staff was $140,000. | |
Prepare the journal entry to account for Bluebell Ltd's provision
for long service leave at 30 June 2019 in relation to the
non-managerial employees of the company's debt collection business.
(Enter debit entries first, followed by credit entries.
Credit account titles are automatically indented when the amount is
entered. Do not indent manually. Round discount factors to 6
decimal places e.g. 0.527512 and final answers to 0 decimal places,
e.g. 5,275.)
|
Date |
Account and explanation |
Debit |
Credit |
|
30/6/19 |
Wages and salaries expense Provision for sick leave Cash Provision for long service leave Long service leave expense |
||
|
Long service leave expense Provision for long service leave Provision for sick leave Wages and salaries expense Cash |
|||
|
(Increase in provision for long service leave) |
In: Accounting
A medical researcher wants to compare the pulse rates of smokers and non-smokers. He believes that the pulse rate for smokers and non-smokers is different and wants to test this claim at the 0.01 level of significance. The researcher checks 51 smokers and finds that they have a mean pulse rate of 79, and 58 non-smokers have a mean pulse rate of 77. The standard deviation of the pulse rates is found to be 10 for smokers and 8 for non-smokers. Let μ1 be the true mean pulse rate for smokers and μ2 be the true mean pulse rate for non-smokers.
Step 1 of 4 : State the null and alternative hypotheses for the test.
Step 2 of 4 : Compute the value of the test statistic. Round your answer to two decimal places.
Step 3 of 4 : Find the p-value associated with the test statistic. Round your answer to four decimal places.
Step 4 of 4 : Make the decision for the hypothesis test and state your conclusion.
In: Statistics and Probability
A medical researcher wants to compare the pulse rates of smokers and non-smokers. He believes that the pulse rate for smokers and non-smokers is different and wants to test this claim at the 0.02 level of significance. The researcher checks 79 smokers and finds that they have a mean pulse rate of 87, and 75 non-smokers have a mean pulse rate of 83. The standard deviation of the pulse rates is found to be 6 for smokers and 6 for non-smokers. Let μ1 be the true mean pulse rate for smokers and μ2 be the true mean pulse rate for non-smokers.
Step 1 of 4 :
State the null and alternative hypotheses for the test.
Step 2 of 4:
Compute the value of the test statistic. Round your answer to two decimal places.
Step 3 of 4:
Determine the decision rule for rejecting the null hypothesis H0. Round the numerical portion of your answer to three decimal places.
Step 4 of 4:
Make the decision for the hypothesis test.
In: Statistics and Probability
Show your work. Carry out all calculations to at least 3 significant digits.
Marketing strategists like to study the differences (in, e.g., age and income) between buyers and non-buyers of a product. In an earlier study of the purchasers and non-purchasers of a product sold by the AAA Company, demographic data were collected. Their age profiles (in years) are summarized and reported as follows:
Purchasers
Sample size 900
Sample mean 43.8
Sample standard deviation 14.6
Non-Purchasers
Sample size 800
sample Mean 40.3
Sample standard deviation15.4
A. Based on the market demographic data obtained, do we have strong enough evidence to conclude that buyers of the company’s product are on average more than two years older than non-buyers are? Test using α = 0.05.
B. Construct a 95% confidence interval for the difference in average age between purchasers and non-purchasers of the product. Interpret the significance of the age difference.
In: Statistics and Probability
A medical researcher wants to compare the pulse rates of smokers and non-smokers. He believes that the pulse rate for smokers and non-smokers is different and wants to test this claim at the 0.02 level of significance. A sample of 46 smokers has a mean pulse rate of 75, and a sample of 47 non-smokers has a mean pulse rate of 73. The population standard deviation of the pulse rates is known to be 7 for smokers and 10 for non-smokers. Let μ1 be the true mean pulse rate for smokers and μ2 be the true mean pulse rate for non-smokers. Step 1 of 4: State the null and alternative hypotheses for the test. Step 2 of 4: Compute the value of the test statistic. Round your answer to two decimal places. Step 3 of 4: Determine the decision rule for rejecting the null hypothesis H0. Round the numerical portion of your answer to two decimal places. Step 4 of 4: Make the decision for the hypothesis test.
In: Math
One of the major problems with front office accounting at the Royal Crest Hotel is monitoring guest and non-guest accounts using their manual system. Management has always extended local businesses and government officials charge privileges, the idea being that, with the convenience of deferred payments, local patrons would be more likely to dine and/or host clients at the hotel. This program has proved to be highly successful. The volume of purchases charged to such non-guest accounts now approximates the level of sales incurred by registered guests. Unsure if this is a good or bad situation, Mr. Osei, the front office manager, requests the front office accounting staff to study the problem and to report its findings at next week's front office meeting. At the weekly front office meeting, the hotel's accountant, Ms. Pokua, reports that there are at least three problems related to the hotel's non- guest charge purchasing policies: its impact on the daily hotel audit, the billing procedures to collect payment, and the number of applications for additional non-guest accounts. When asked to be more specific, she begins with a review of the daily hotel audit. She states that since the front office receives charge vouchers from the hotel's revenue centers, it is the front desk agent's responsibility to separate guest from non-guest accounts. Since registered guest charges are posted by room number, one would think it easy to sort those charges from the others. Unfortunately, both the hotel's guest account numbers and the non-guest account numbers are three digits, thereby making the sorting more time-consuming. Mr. Osei asks if it is really necessary to separate the charges. Ms. Pokua explains that it is, since the hotel must maintain accurate guest folio Page 2 of 1 G. N. Baah balances. She further states that the non-guest vouchers are accumulated and posted on Saturday afternoons, when the hotel's business is less hectic. The billing procedures to collect non-guest account balances are tricky, Ms. Pokua said. Since the hotel bills non-guest accounts on the last day of each month, some charges occurring in a particular month may not be posted in time to appear on that month's bill. In addition, non-guest accounts usually are not paid in time. In fact, 47 percent of last month's non-guest account balances remain unpaid and tomorrow is the date of the next billing cycle. Mr. Osei explains that the local customers are important to the hotel and suggests that maybe Ms. Pokua is over-sensitive to the billing problems. Lastly, Ms. Pokua relates the fact that there are at least ten new applications for non-guest accounts. She has instructed her staff not to authorize any new non-guest accounts without her written approval. She further states that she is reluctant to authorize any additional non-guest accounts, and looks to Mr. Osei for advice. Convinced of the positive aspects of such business, Mr. Osei directs her to approve the requests and to assign account numbers effective the first day of next month.
1). State four things that could be done to improve collection of outstanding balances? .
2). What are the two (2) advantages and two (2) disadvantages to having a high volume of non- guest accounts? NOTE; PLEASE I NEED DIFFERENT ANSWERS.
In: Operations Management
Metastasis is responsible for about 90% of cancer associated deaths. The five year survival rate comparisons for metastatic and non-metastatic tumors in various tissues was presented in lecture 10. The prostate cancer survival rate for non-metastatic tumors is 100%, whereas for liver cancer it is 28%. Why do you think there is such a big difference in survival rates for these two cancer types when both are non-metastatic tumors? (5 points)
In: Biology
SQL Server
6. Our new system cannot handle Unicode (Links to an external
site.) characters, only ASCII (Links to an external site.)
characters.
The current Productname data type is NVARCHAR, which is unicode,
and might have non-ASCII characters in it. We need to check!
Show the ProductID, and ProductName, and the first location of any
non-Unicode characters. See the note at the bottom for how to find
non-Unicode characters.
In: Computer Science
Khaled Co. reports SR 100000 net income for the year ended 2018, account receivables decreased by SR 7000, account payable decreased by SR 6000, and during the 2018 reported SR 10000 of depreciation expenses. What is Khaled CO. operating cash flow for 2018?
In: Accounting