The following trial balance has been extracted from the books and records of Carpets R Us Limited, a registered company, on the 30^th September 2019:

Additional information is:-

• Inventory at 30^th September 2019 was valued at £54,200.

• Depreciation is to be provided on a 20% reducing balance basis for the year for motor vehicles and 10% straight line basis for fixtures and fittings.
• Rent & insurance contains an invoice for £1,200 for the quarter ending 31^st November 2019.

• Provision is to be made for an audit fee of £2,500 and a director’s fee of £18,250. These amounts were calculated after the year end but related to this year.

• The directors have identified one customer who owes them £1,500 who has been declared bankrupt; the company is unlikely to receive any money.

• Corporation tax is charged at £44,887.
• The directors propose an ordinary dividend of 10 pence per ordinary share to include the interim dividend paid.

Required:

Using international accounting standards (IAS) produce the following financial statements: (A cash Flow Statement is not required)

1. The statement of profit or loss for the year ended 30^th September 2019.

[6 marks]

2. The statement of changes in equity for the year ended 30^th September 2019.

[6 marks]

3. The statement of financial position as at that date.

[13 marks]

4. All your workings as notes to the accounts.

[25 marks]

Assume that the following hold true for the US and China, and assume that the growth rate listed will remain the same over the next century and a half. (The numbers given are fairly close to the current values, but the assumption that the growth rates will remain constant for the next 150 years is pretty ridiculous. Still, go with it.)

1. Given the data in the table, what is the annual growth rate of real GDP per capita in the US? Show your work.

2. Given the data in the table, what is the annual growth rate of real GDP per capita in China? Show your work.

3. According to the Rule of 70 and using your answer from part 1, approximately how many years would it take for the real GDP in the US to double? Show your work.

4. According to the Rule of 70 and using your answer from part 2, approximately how many years would it take for the real GDP in China to double? Show your work.

5. Given your answer to part 3, approximately what will the real GDP per capita be in the US in 2158: that is, 140 years from now? Show your work.

6. Given your answer to part 4, approximately what will the real GDP per capita be in China in 2158: that is, 140 years from now? Show your work.

Kurt Helfter graduated with a B.S. degree in Mechanical Engineering and joined Andrew Consulting, a firm specializing in HVAC (heating, ventilation, and air conditioning) for small to medium-size business structures. Kurt is knowledgeable in the use of CAD (computerassisted design) and was pleased during his initial employment to find Andrew Consulting a leader in the use of CAD software. During Kurt's third year at Andrew, he felt a sense of unease with the firm's slow pace in updating computer hardware and software. Although not directly involved in budgeting for the firm, Kurt has been satisfied with the resources that Andrew provided for his use. Kurt felt the need to detail his concerns in a memo to his superior, in which he requested significant investment in computer resources to "allow us to respond to clients' needs, both in quantity and quality." Kurt was surprised and hurt when he received his superior's response, which suggested that resource allocation in the firm is decided at a higher administrative level. "But all I wanted to do was help keep our firm competitive," Kurt responded to his boss when visiting him about the rejection memo. "Sorry, Kurt," his boss said, "That's how things get done in this firm." Kurt now feels lost, wondering if it's time to look for another job. Does this situation suggest what type of budgeting process the company is using? Is there a problem with individual and company goal congruence in Andrew Consulting? If so, how might Kurt's supervisor have prevented the problem?

Kurt Helfter graduated with a B.S. degree in Mechanical Engineering and joined Andrew Consulting, a firm specializing in HVAC (heating, ventilation, and air conditioning) for small to medium-size business structures. Kurt is knowledgeable in the use of CAD (computerassisted design) and was pleased during his initial employment to find Andrew Consulting a leader in the use of CAD software. During Kurt's third year at Andrew, he felt a sense of unease with the firm's slow pace in updating computer hardware and software. Although not directly involved in budgeting for the firm, Kurt has been satisfied with the resources that Andrew provided for his use. Kurt felt the need to detail his concerns in a memo to his superior, in which he requested significant investment in computer resources to "allow us to respond to clients' needs, both in quantity and quality." Kurt was surprised and hurt when he received his superior's response, which suggested that resource allocation in the firm is decided at a higher administrative level. "But all I wanted to do was help keep our firm competitive," Kurt responded to his boss when visiting him about the rejection memo. "Sorry, Kurt," his boss said, "That's how things get done in this firm." Kurt now feels lost, wondering if it's time to look for another job. Does this situation suggest what type of budgeting process the company is using? Is there a problem with individual and company goal congruence in Andrew Consulting? If so, how might Kurt's supervisor have prevented the problem?

An unlevered company with a cost of equity of 15% generates $7 million in earnings before interest and taxes (EBIT) each year. The decides to alter its capital structure to include debt by adding $2 million in debt with a pre-tax cost of 8% to its capital structure and using the proceeds to reduce equity by a like amount as to keep total invested capital unchanged. The firm pays a tax rate of 39%.

Assuming that the company's EBIT stream can be earned into perpetuity and that the debt can be perpetually issued (or rolled), what is the value of the equity of the levered company?

An unlevered company with a cost of equity of 16% generates $4 million in earnings before interest and taxes (EBIT) each year. The decides to alter its capital structure to include debt by adding $2 million in debt with a pre-tax cost of 4% to its capital structure and using the proceeds to reduce equity by a like amount as to keep total invested capital unchanged. The firm pays a tax rate of 39%.

Assuming that the company's EBIT stream can be earned into perpetuity and that the debt can be perpetually issued (or rolled), what is the firm's new debt-to-equity ratio?

For those who are trying to make moral decisions,

What is the trade situation of tanzania?  How much does tanzania export/import (compare it to the US)?  What products/services are exported/imported the most?  Do they have a positive trade balance or a negative trade balance (line graph of the past 5 years)? Who are the most important trading partners (exports/imports) of this country (Pie-Chart)? Is the trade situation of this country improving or declining?    What is the significance of having a positive trade balance?

4) What happens to the value of the dollar if the European Central Bank (ECB) tightens its money supply and raises interest rates? How will this impact the value of the dollar, exports and imports, AD and GDP?

5) What are 5 financial innovations and deregulations that led to the financial crisis in 2008? What are 5 policy responses by the Federal Reserve and the U.S. Government and Treasury department that helped us to get out of the financial crisis? Who are the winners and losers?

1. Discuss how price discriminating monopolists stop products or services leaking from one market to another.
2. Explain why only normal profit may be earned in the long run in perfect competition