Question 4 [27]

The following bank reconciliation statement was prepared by the bookkeeper of Veggie Stores for January 2020. The financial year of the business ends in January each year.

Required:

1. Is the opening balance of R35 000 as per the bank statement a debit or a credit balance on the bank statement? Explain your answer.                                                                         (2)
2. Explain why the business has entered cheque no. 9753 in the bank reconciliation statement.                                                                                                                                       (3)
3. The business has made three other errors. Identify the amounts relating to these errors and explain why they are errors. Specify the corrective action that should be taken to correct these errors.                                                                                                                            (9)
4. Prepare a corrected bank reconciliation statement for January 2020.                         (7)
5. The owner is concerned about the outstanding deposit of R12 900. Explain why he is concerned.                                                                                                                     (2)
6. Propose TWO steps the owner should take to prevent things such as those described in Question 4.5 above from occurring again in the future.                                                (4)

Complete question 4.3 and 4.4 specifically in format below

4.3

                                                                                                                                                        (9)

4.4

                                                                                                                                                        (7)

Genmo Corporation*

On the night of February 27, 2012, certain records of the Genmo Corporation were accidentally destroyed by fire. Two days after that the principal owner had an appointment with an investor to discuss the possible sale of the company. The owner needed as much information as could be gathered for this purpose, recognizing that over a longer period of time a more complete reconstruction would be possible.

On the morning of February 28, the following were available: (1) A balance sheet as of December 31, 2010, and an income statement for 2010 (Exhibit 1) and (2) certain fragmentary data and ratios that had been calculated from the current financial statements (Exhibit 2). The statements themselves had been destroyed in the fire. (In ratios involving balance sheet amounts, Genmo used year‐end amounts rather than an average.) And (3) the following data (in thousands):

2011 revenues.............................................................. $10,281

Current liabilities, December 31, 2011 ......................... 2,285

EXHIBIT 1 Genmo Corporation Financial Statements

(thousands of dollars)

BALANCE SHEET

As of December 31, 2010

Assets

Current assets: Cash................................................................ $    18

Marketable securities..................................... 494

Accounts receivable......................................   728

Inventories......................................................    972

Prepaid expenses........................................... 214

Total current assets..................................... 2,426

Investments……………………………………………. 898

Real estate, plant, and equipment........................... $4,727

Less: Accumulated depreciation..................... 2,433 2,294

Special tools............................................................. 171

Goodwill................................................................... 594

Total assets.............................................................. $6,383

Liabilities and Shareholders’ Equity

Current liabilities: Accounts payable............................................. $ 732

Loans payable.................................................. 266

Accrued liabilities.............................................. 1,232

Total current liabilities............................. 2,230

Long-term debt.......................................................... 250

Other noncurrent liabilities......................................... 951

Total liabilities............................................................ 3,431

Shareholders’ equity: Preferred stock................................................. 25

Common stock.................................................   54

Additional paid-in capital.................................. 667

Retained earnings............................................   2,206

Total shareholders’ equity.......................   2,952

Total liabilities and shareholders’ equity.................... $6,383

Income Statement, 2010

Total revenues.......................................................... $9,779

Cost of sales (excluding depreciation and amortization)… $8,165

Depreciation........................................................................ 278

Amortization of goodwill and special tools.......................... 343 8,786

Selling, general, and administrative expenses................... 430

Provision for income taxes.................................................. 163

Total costs and expenses................................................... 9,379

Net income.......................................................................... $ 400

EXHIBIT 2 Selected Ratios

                                                                                                              2011 2010

Acid-test ratio.......................................................................... 0.671    0.556

Current ratio ........................................................................... 1.172     1.088

Inventory turnover (times) .......................................................10.005   8.400

Days’ receivables.................................................................... 39.66     27.17

Gross margin percentage........................................................ 15.12    16.50

Profit margin percentage.......................................................... 2.831   4.090

Invested capital turnover (times) ............................................. 2.091    2.355

Debt/equity ratio (percentage) ................................................. 62.15   40.68

Return on shareholders’ equity.................................................. ?        13.55

Questions 1. Prepare a balance sheet as of December 31, 2011, and the 2011 income statement.

                    2. What was the return on shareholders’ equity for 2011?

1.    An article in the Wall Street Journal on Friday May 27, 2011 titled “The Return of Meatless Friday”, discusses the sociological aspects of a recent announcement by the bishops of the catholic church in England and Wales. The bishops asked their parishioners to abstain from red meat every Friday for the entire year; not just during Lent. Some have claimed that if English and Welsh catholics reduce consumption of red meat by 5 tons every Friday, there would then be 5 tons more meat each week for others, including the poor, to eat. Assuming a typical upward sloping supply curve and downward sloping demand curve, over the long term, is the statement true or false?

       a.    True                                                 b.           False

2.    With reference to question 1, if consumption of red meat is reduced, then over the long term, the price of red meat relative to other sources of protein, such as fish and poultry, will increase.

       a.    True                                                 b.           False

27) Describe in detail what the greenhouse effect is and how it works/what causes it

List 2 examples of greenhouse gases.

What is the general consensus among scientists about whether or not global climate change is occurring and if human activities are contributing to this? Give at least 2 examples of reasons or statistics/data that would help why scientists have come to this conclusion. Be sure to answer both questions (2 points)

1) A company has 3,000 shares of common stock outstanding at a price of $27 per share. It also has 150 bonds outstanding, each with a face value of $1,000 and currently selling at 45% of face value. The tax rate is 20%. What is the weight of debt that would be used in the calculation of the weighted average cost of capital?

2) A company has equity with a market value of $15,000 and debt with a market value of $9,500. The company also has 200 shares of preferred stock that pay a constant annual dividend per share of $2.65 forever; the next dividend is in one year. The cost of the preferred stock is 8%. What is the weight of the preferred stock that would be used in the calculation of the weighted average cost of capital?

Imagine a human protein containing 27 repeats of a simple domain arranged in tandem. In contrast a homolog found in bacteria contain only one domain. what is the minimum number of duplication events that can account for the evolution of this protein since our divergence from bacteria? write down the number

A study reported that in a sample of 90 men, 27 had elevated total cholesterol levels (more than 200 milligrams per deciliter). In a sample of 110 women, 22 had elevated cholesterol levels. At the 5% level of significance, can you conclude that the proportion of people with elevated cholesterol levels for men is larger than the proportion of people with elevated cholesterol levels for women? Compute the p-value of the test.   Use at least five decimal places for the denominator during your computations.

A)0.1010

B)0.4602

C)0.2450

D)0.0505

27. Be able to describe regulation of gene expression in prokaryotes (transcriptional, like the Lac Operon) and in eukaryotes (transcriptional and epigenetic regulation).