The following information relates to the Ashanti Group of Companies for the year to 30 April 2020.
|
Details |
Ashanti Ltd |
Bochem Ltd |
Ceram Ltd |
|
$’000 |
$’000 |
$’000 |
|
|
Revenue |
17,600,000 |
8,000,000 |
2,080,000 |
|
Cost of Sales |
-10,080,000 |
-4,800,000 |
-1,120,000 |
|
Gross Profit |
7,520,000 |
3,200,000 |
960,000 |
|
Administrative expenses |
-1,680,000 |
-2,400,000 |
-320,000 |
|
Dividends received from Bochem |
384,000 |
- |
- |
|
Dividends received from Ceram |
96,000__ |
______ |
_______ |
|
Profit before taxation |
6,320,000 |
800,000 |
640,000 |
|
Taxation |
-1,040,000 |
-160,000 |
-320,000 |
|
Profit for the year |
5,280,000 |
640,000 |
320,000 |
Additional Information:
Ashanti Ltd purchased 70% of the issued share capital of Bochem Ltd in 2000. At that time, the retained profits of Bochem amounted to $896,000.
Ashant Ltd purchased 60% of the issued share capital of Ceram Ltd in 2004. At that time, the retained profits of Ceram Ltd amounted to $320,000.
Sales from Ashanti to Bochem Ltd were $ 3 million during the post-acquisition period. Ashanti marks up all sales by 20%. At the reporting date this entire inventory remained in Bochem’s warehouse.
REQUIRED:
In so far as the information permits, prepare Fab Group of Companies’ Consolidated Income Statement for the year ended 30 April 2020 in accordance with IFRSs.
In: Accounting
Assignment:
Using what we have learnt about the price elasticity of demand, and what we remember about short run and long run price elasticities (Chapter 2 of Perloff (2017)), along with substitution and income effects (Chapter 4 of Perloff (2017)) as a guide, choose a particular product (good or service) which you or your family purchased during the recession of 2007 – 2009, or choose a particular good which you or your family purchased at least 2 years ago (before the start of the pandemic in 2020). You may or may not be purchasing the product this year or since March 2020. Give a general description of this product in terms of its relationship with income and its relationship with price. Then discuss your (or your family’s) spending behavior prior to the major event (recession or pandemic), and now. If you or your family no longer purchase this product, discuss why. Be sure to include in your discussion the price changes (increase or decrease, using specific values if available), how you or your family responded to these changes, and whether this product is more price elastic or price inelastic in the long run (compared to the short run).
Reference: Launch the Perloff, Microeconomics: Theory and Applications with Calculus 4 or 5
In: Economics
|
Windsor, Inc. |
||||||
|
Assets |
2020 |
2019 |
||||
| Cash |
$36,000 |
$21,000 |
||||
| Accounts receivable |
32,700 |
18,900 |
||||
| Inventory |
30,100 |
20,100 |
||||
| Equipment |
59,600 |
77,600 |
||||
| Accumulated depreciation—equipment |
(29,400 |
) |
(23,300 |
) |
||
| Total |
$129,000 |
$114,300 |
||||
|
Liabilities and Stockholders’ Equity |
||||||
| Accounts payable |
$28,000 |
$16,800 |
||||
| Income taxes payable |
7,200 |
8,400 |
||||
| Bonds payable |
26,700 |
32,100 |
||||
| Common stock |
17,700 |
13,400 |
||||
| Retained earnings |
49,400 |
43,600 |
||||
| Total |
$129,000 |
$114,300 |
||||
|
Windsor, Inc. |
||
| Sales revenue |
$242,500 |
|
| Cost of goods sold |
175,200 |
|
| Gross profit |
67,300 |
|
| Operating expenses |
24,900 |
|
| Income from operations |
42,400 |
|
| Interest expense |
2,700 |
|
| Income before income taxes |
39,700 |
|
| Income tax expense |
7,400 |
|
| Net income |
$32,300 |
|
Additional data:
| 1. | Dividends declared and paid were $26,500. | ||||
| 2. | During the year, equipment was sold for $9,600 cash. This equipment cost $18,000 originally and had a book value of $9,600 at the time of sale. | ||||
| 3. | All depreciation expense, $14,500, is in the operating expenses. | ||||
| 4. | All sales and purchases are on account. Compute free cash
flow.
|
In: Accounting
The following are selected ledger accounts of Whispering
Corporation at December 31, 2020.
| Cash | $203,500 | Salaries and wages expense (sales) | $312,400 | |||
| Inventory | 588,500 | Salaries and wages expense (office) | 380,600 | |||
| Sales revenue | 4,702,500 | Purchase returns | 16,500 | |||
| Unearned sales revenue | 128,700 | Sales returns and allowances | 86,900 | |||
| Purchases | 3,064,600 | Freight-in | 79,200 | |||
| Sales discounts | 37,400 | Accounts receivable | 156,750 | |||
| Purchase discounts | 29,700 | Sales commissions | 91,300 | |||
| Selling expenses | 75,900 | Telephone and Internet expense (sales) | 18,700 | |||
| Accounting and legal services | 36,300 | Utilities expense (office) | 35,200 | |||
| Insurance expense (office) | 26,400 | Miscellaneous office expenses | 8,800 | |||
| Advertising expense | 59,400 | Rent revenue | 264,000 | |||
| Delivery expense | 102,300 | Casualty loss (before tax) | 77,000 | |||
| Depreciation expense (office equipment) | 52,800 | Interest expense | 193,600 | |||
| Depreciation expense (sales equipment) | 39,600 | Common stock ($10 par) | 884,800 |
Whispering’s effective tax rate on all items is 20%. A physical
inventory indicates that the ending inventory is $686,000.
Prepare a condensed 2020 income statement for Whispering
Corporation. (Round earnings per share to 2 decimal
places, e.g. 1.48.)
In: Accounting
In: Accounting
On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $313,500 when K-Tech’s book value was $413,500. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $209,000. At the acquisition date, K-Tech's trademark (20-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (10-year remaining life) was undervalued by $29,000.
In 2020, K-Tech reports $25,500 net income and declares no dividends. At the end of 2021, the two companies report the following figures (stockholders’ equity accounts have been omitted):
|
French Company Carrying Amounts |
K-Tech Company Carrying Amounts |
K-Tech Company Fair Values |
|||||||||
| Current assets | $ | 629,000 | $ | 309,000 | $ | 329,000 | |||||
| Trademarks | 269,000 | 209,000 | 289,000 | ||||||||
| Patented technology | 419,000 | 159,000 | 188,000 | ||||||||
| Liabilities | (399,000 | ) | (129,000 | ) | (129,000 | ) | |||||
| Revenues | (909,000 | ) | (409,000 | ) | |||||||
| Expenses | 491,000 | 309,000 | |||||||||
| Investment income | Not given | ||||||||||
What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interests?
In 2021, assuming K-Tech has declared no dividends, what are the noncontrolling interest’s share of the subsidiary’s income and the ending balance of the noncontrolling interest in the subsidiary?
In: Accounting
In 2020, the Alnoor Company purchased from Hamoorthe right to be the sole distributor in Muscat governance of a product called Zelenex in 2021.
Alnoor reports inventory using the periodic FIFO assumption. Late in 2021, the following information is available concerning the inventory of Zelenex:
|
Beginning inventory, 1/1/2021 (10,000 units @ $30) |
$ 300,000 |
|
Purchases (40,000 units @ $30) |
1,200,000 |
|
Sales (35,000 units @ $60) |
2,100,000 |
By the end of the year, the purchase price of Zelenex had risen to $40 per unit. On December 28, 2021, three days before year-end, Alnoor is in a position to purchase 20,000 additional units of Zelenex at the $40 per unit price. Due to the increase in purchase price, Alnoor will increase the selling price in 2022 to $80 per unit. Inventory on hand before the purchase, 15,000 units, is sufficient to meet the next six months’ sales and the company does not anticipate any significant changes in purchase price during 2022.
Required:
Calculating the ending inventory of the year 2021? show calculations and explanations.
In: Accounting
Myers Company uses a flexible budget for manufacturing overhead
based on direct labor hours. Variable manufacturing overhead costs
per direct labor hour are as follows.
| Indirect labor | $1.00 | |
|---|---|---|
| Indirect materials | 0.70 | |
| Utilities | 0.40 |
Fixed overhead costs per month are Supervision $4,000, Depreciation
$1,200, and Property Taxes $800. The company believes it will
normally operate in a range of 7,000–10,000 direct labor hours per
month.
Assume that in July 2020, Myers Company incurs the following
manufacturing overhead costs.
|
Variable Costs |
Fixed Costs |
|||||
|---|---|---|---|---|---|---|
| Indirect labor | $8,800 | Supervision | $4,000 | |||
| Indirect materials | 5,800 | Depreciation | 1,200 | |||
| Utilities | 3,200 | Property taxes | 800 | |||
(a) Prepare a flexible budget performance report,
assuming that the company worked 9,000 direct labor hours during
the month. (List variable costs before fixed
costs.)
(b) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month. (List variable costs before fixed costs.)
In: Accounting
Healthy People 2010 - is a guide to promote preventative care. Review primary, secondary and tertiary prevention and relate this to women and children at risk in your community. Identify those risk factors that a prevention program could impact the health of the group you identify.
In: Nursing
QUESTION 1
Explain what is meant by musculoskeletal injury (MSI) or repetitive strain injury (RSI). Give some examples of this type of injury. According to Quinlan, Bohle and Lamm (2010) what are the most effective approaches to prevent and treat MSI/RSI?
In: Biology