Segment average assets………………….. $500,000 $400,000 $900,000
Corporate average assets………………… 300,000 200,000 500,000
Total average assets……………… 800,000 600,000 1,400,000
The president of the company has severely criticized the manager of the Shovel Division for its dismal 3.8% ROI, “which doesn’t come close to the firm’s 12% cost of capital.” The manager of Hoe Division also was criticized for an 11.7% ROI, “which is slightly less than the cost of capital.” Corporate fixed costs and assets are allocated to each division on the basis of sales.
Show the calculations that the president used as the basis for the criticism.
For each division and for the company as a whole, using appropriate data, calculate the following:
Return on Sales
Calculate residual income for each division.
In view of your answers to parts (b) and (c), is the president’s criticism justified?
submit a 575-word essay addressing the following questions: Why do we have a responsibility to pay taxes? Why is it so important that we be generous with our money instead of selfish? What did Larry Burkett mean when he said, “God does not supply money to satisfy our every whim and desire? His promise is to meet our needs and provide an abundance so that we can help other people” Incorporate the Holy Bible verse.
Type of service-Academic paper writing Type of assignment-Essay Subject-Accounting Pages / words-2 / 550 Number of sources-1 Academic level-Undergraduate Paper format-APA Line spacing-Double Language style-US English
this research should be done for the period of 1998 to 2019 hypothesis questions: 1) the impact of liquidity on bank performance due to the regions of uncertainty avoidance and individualism. 2) how these banks (Greece, Denmark, Sweden, Portugal ) were impacted due to the financial crisis? structure.
Type of service-Dissertation services Type of assignment-Dissertation Subject-Accounting Pages / words-11 / 6000 Number of sources-30 Academic level-Bachelor’s Paper format-Harvard Line spacing-Single Language style-UK English
You will have to write an audit report on State Gas Australia in connection to the case study
Type of service-Academic paper writing Type of assignment-Research Paper Subject-Accounting Pages / words-6 / 1650 Number of sources-4 Academic level-Master’s Paper format-APA Line spacing-Double Language style-AU English
You have been appointed as the accountant for a small proprietary limited company ‘Midnight Soil Pty Ltd’ (The Soils). The ‘Soils’ conducts tests to see if soil is contaminated and whether (or not) that land can be used for approved purposes (or not). The Soils has five directors. They have all agreed that at their next board meeting they would discuss paying a dividend of 22 cents per share. However, you have identified there is a potential cash flow issue due to the company’s recent loss of a major contract. You have assessed that the company is able to cover this revenue loss in the short term because it has a positive net asset position carried over from the previous financial year. Your further opinion is that cash flow problems will arise during the next quarter and you have put this in writing to the Soils Board.
Based on your advice, two directors call you before the next board meeting to ask if there is anything that can stop the proposed dividend if three of the five directors vote in favourof paying the dividend now.
Advise the two directors. Use relevant cases and legislation to support your answer.
Practice Question 2
The directors of Happy Trails are keen to purchase a block of land. Rajiv is one of the directors of Happy Trails, the company which has had two years of poor trading and is now unable to pay its debts when they fall due. Rajiv seeks your advice on the options available in the circumstances. He is concerned the company may be insolvent but is hopeful that ‘the business could be profitable again if creditors allow a little time to make some changes.’
A. Explain the options available to Rajiv’s company if the directors are concerned the company may be at risk of insolvent trading.
B. What sort of risk could Rajiv face if he borrows more money to help the company but then can’t pay it back? Your answers must refer the relevant sections of the Corporations Act 2001 (Cth) and case law.
Total 2000 words – 1000 words each
No Introduction, No Conclusion
Question 1 – Chapter 20 – Accounts, Auditors and Dividends
Question 2 – Chapter 22 – External Administration and Insolvency
References – 4 each question (Total 8)
Type of service-Academic paper writing Type of assignment-Essay Subject-Accounting Pages / words-8 / 2000 Number of sources-8 Academic level-Sophomore (College 2nd year) Paper format-Harvard Line spacing-Double Language style-AU English
Communication Case 3-3 : FASB Codification Research; inventory or property, plant and equipment
The Red Hen Company produces, processes, and sells fresh eggs. The company is in the process of preparing financial statements at the end of its first year of operations and has asked for your help in determining the appropriate treatment of the cost of its egg-laying flock. The estimated life of a laying hen is approximately two years, after which they are sold to soup companies. The controller considers the company’s operating cycle to be two years and wants to present the cost of the egg-producing flock as inventory in the current asset section of the balance sheet. He feels that the hens are “goods awaiting sale.” The chief financial officer does not agree with this treatment. He thinks that the cost of the flock should be classified as property, plant, and equipment because the hens are used in the production of product-the eggs. The focus of this case is the balance sheet presentation of the cost of the egg-producing flock. Your mission is to reach consensus on the appropriate presentation.
Each thread must be at least 500 words and demonstrate course-related knowledge. You must support your assertions with at least 3 citations other than the textbooks; the Bible must be 1 of those sources.
Type of service-Academic paper writing Type of assignment-Case study Subject-Accounting Pages / words-2 / 550 Number of sources-3 Academic level-Undergraduate Paper format-APA Line spacing-Double Language style-US English
Question 1 Risk management is not in a silo any more but is a, ‘holistic, co-ordinated and integrated process which manages risk throughout the organisation’ (CIMA, 2008) Required: Discuss the requirements for an effective risk management framework and critically evaluate the use of Enterprise Risk Management within organisations. [50 marks] [Maximum 1000 words] Question 2 Pick Ltd is a medium sized dairy farmer specialising in providing local organic produce in the East Midlands. It is proud of its premium quality dairy food, produced organically at its farms and processed and packaged on site, delivered as fresh as possible to its local customers. The Senior Management Accountant has introduced Activity Based Costing/Management (ABC/M) within the company and is now using this to evaluate customer profitability. Information for its two largest customers are detailed below. Customer X Customer X has recently developed links with local farmers so that stores can offer locally produced goods; it has found that demand for locally produced dairy foods such as milk and yoghurts is significant and growing. Last year, the annual revenue from the Customer X account was £625,000, with an operating profit contribution of £250,000. Customer X took 30 deliveries last year with average mileage being 25 miles per delivery. The company placed 7 orders in the year, within this figure there was 1 priority order. A sales person visits Customer X’s HQ three times per year to manage the relationship and introduce new product developments. Customer X requires an invoice every quarter. Customer Y Customer Y stores are smaller than Customer X stores and are usually located within local shopping areas. Customer Y markets itself as a supplier of local goods and this account has been long established with Pick’s. Last year, the annual revenue was £750,000, with an operating profit contribution of £350,000. Last year 85 deliveries were made with an average mileage of 90 miles per delivery. A sales person visits Customer Y‘s HQ every month to finalise the order for that month. In addition to the monthly orders Customer Y averages 1 priority order per month. Customer Y requires an invoice per month. The ABC/M database includes the following customer related cost drivers and rates. Activity Cost Order taking £50 per order Order processing £95 per order Delivery £250 per trip and £2.50 per mile Additional cost of priority orders (Order taking, processing and delivery) £800 per order Visit to customer £700 per visit Invoicing £45 per invoice Required: Critically evaluate the benefits and potential challenges of customer profitability analysis, and prepare a customer profitability analysis for customers X and Y before drawing on your calculations to provide a commentary for Pick’s management including any specific recommendations for action. [50 marks] [Maximum 650 words. Calculations are not part of the word count]
Type of service-Academic paper writing Type of assignment-Term Paper Subject-Accounting Pages / words-6 / 1650 Academic level-Undergraduate Paper format-Harvard Line spacing-Double Language style-UK English
McCrea plc is a UK manufacturer of garden furniture. The company has provided the following financial statements:
Statement of Financial Position as at 31 December 2019:
Plant and equipment
Non-current liabilities and equity
Long term loans
£1 ordinary shares
Income Statement for the year ended 31 December 2019:
Cost of goods sold
Net profit before tax
Net profit for the year
(a)Calculate the following ratios for McCrea plc in 2019.
Return on Capital Employed (ROCE)
Operating profit margin
Inventories’ turnover period
Settlement period for trade receivables
Acid test ratio
Interest cover ratio
Earnings Per Share (EPS)
All calculations (including the ratio formulas) must be clearly shown.
(b)The ratios set out in the table below are those calculated for McCrea plc based on its published financial statements for the previous year (2018)
Return on Capital Employed (ROCE)
Operating profit margin
Inventories turnover period
Settlement period for trade receivables
Acid test ratio
Interest cover ratio
Earnings Per Share (EPS)
Using the ratios you calculated (in part a) for McCrea plc in 2019 and the above ratios for 2018, comment on the company’s performance and financial position for the two years.
(Total: 33 marks)
(maximum 200 words in total. Tables, calculations, annotations for worked answers do not count in the word limit)
Type of service-Academic paper writing Type of assignment-Coursework Subject-Accounting Pages / words-2 / 550 Academic level-Undergraduate Paper format-Harvard Line spacing-Double Language style-UK English
CurtainsMaster is a large proprietary company established in North Queensland in the 1990s, selling a wide range of high-quality fabric curtains for household decoration. The company purchases products from manufactures in Vietnam, Bangladesh, and China, and then sells its products to wholesales customers in Australia, Germany, and the United States. The company also places its products on consignment in various small retail stores in Queensland. Sales mainly peak from the second half of the financial year, generating an average of 60% of revenue for the whole year. In past years the company has performed well, with its profit rate at around 12% and an average increase in annual revenues of 5%.
In the last two years, the company has extended its marketing from Germany to other countries in Europe. As a result of this, in the budget for the year 2019-2020, the company while aiming to maintain its profit rate, plans to increase its revenues by 8%. The company uses USD to pay its suppliers and EUR or USD in its dealings with customers.
While the business is expanding in Europe, sales in Australia and US are struggling to reach their targets. These markets are quite competitive, providing more affordable products with a large range of designs and choices. Further, in recent years, countries like Vietnam and China have become more eco-conscious, attempting to reduce their industrial impact on the environment. As such, textile manufacturing has been discouraged with strict regulations. Some of CurtainsMaster’s suppliers have reduced their production capacity and have experienced an increase in production costs.
Managing inventory on consignment has been an issue for CurtainsMaster in the past 12 months. On several occasions, the company lost track of their inventory movements and status at the various retail premises. To support the business expansion and strengthen internal controls for inventory, in January 2020 the company installed a new inventory management system on the cloud, which allows inventory movements to be followed up, from production to end-users. The system will also help to follow up and calculate inventory ageing from the day the inventory was entered into the system. In the past five years, old and work-in-progress inventory has piled up due to new designs, orders cancelled by customers, or specification problems. When the new system was implemented these stock items, together with others, were entered into the system as the beginning balance for the inventory.
Since January 2020, CurtainsMaster has also experienced significant impact due to the COVID-19 pandemic. Approximately 50% of customer orders due to be delivered in May, June and July have been cancelled. Payments from customers have been delayed as they have also been impacted by the situation. Since the middle of February the company’s sales at small retail stores have decreased dramatically, by approximately 70%. From the middle of March, 60% of staff (both casual and full-time) were made redundant. For the last three months of the current financial year, the company is expecting to have no sales but still pay another 10% of the current total expenses. To minimise the impact of a tight cashflow, in February, when the financial market was peak, the company sold all its financial investments and generated some extra cash for the business before the market dived in March. However, things can get worse; there is much uncertainty and no clear indication of when the pandemic will end.
Assume you are one of the audit team members who will conduct the financial report audit – year ending 30 June 2020 – for CurtainsMaster. Using the company’s information given above, prepare a report dated June 10, 2020 for the audit manager outlining the audit plan. As it is the beginning of the audit do not prepare a final audit report/opinion. The report should cover the following areas under the suggested headings:
From the background and financial information given above:
list six (6) potential significant risks, including both inherent risk and control risk,
for each risk listed, identify the type of risk (inherent risk or control risk) and its level (‘high’, ‘medium’, or ‘low’ in relation to the likelihood and materiality of the risk occurring), the associated financial accounts, and key assertions that would be affected. (A risk should be classified as ‘high’, ‘medium’, or ‘low’ if it is ‘highly likely’, ‘maybe’, or ‘unlikely’ respectively to be present and material.)
Please use the following table to present your answers:
Potential risk – type of risk, description
Level of risk
The audit firm dictates that one planning materiality amount is to be used for the financial statement as a whole. The planning materiality bases are as follows:
Profit before tax
Based on the information given and your risk assessment,
select the base for planning materiality that you believe is most appropriate, and provide three reasons justifying the base you have chosen,
calculate the planning materiality.
(You can refer to Cloud 9 case and textbook pages 123-125 and other resources for further understanding.)
As part of the risk assessment phase, you conducted analytical procedures and the results are as below:
Debt to equity
Times interest earned
Gross profit ratio
Net profit ratio
Return on Sh funds
Using the above analysis and financial information given, discuss the results of the analytical procedures outlining six (6) potential problem areas (that is, where possible material misstatements in the financial reports exist) and any other special concerns (for example, going concern). Specify the account balances and related assertions that would require particular attention in the audit.
Based on the risk assessment processes and analytical procedures undertaken in the previous sections, conclude the overall level of risk, materiality of the firm and recommend the areas of audit focus.
Type of service-Academic paper writing Type of assignment-Case study Subject-Accounting Pages / words-2 / 1000 Academic level-Junior (College 3rd year) Paper format-APA Line spacing-Single Language style-AU English
Assessment 3: Budget Report Requirements Part A – Budget Report Spreadsheet (36 + 36 = 72 marks): Your manager would like you to examine and assess the financial viability of one of the proposed projects. Specifically, your manager would like you and your team to complete the ‘Budgeted Income Statement’ and the ‘Cash Budget’ for the project your team has selected and for the period between January 2021 to December 2021 inclusive. For this part of the assessment, you need to complete the Cash Budget and Budgeted Income Statement. All the ‘other’ budgets will not be marked and have only been included to help you carry out any calculations you might need to fill out the Cash Budget and Budgeted Income Statement. Your manager would like you to use the ‘usual’ Excel spreadsheet budgeting template, which can be found online via Cloud Deakin. Simply navigate to Resources -> Assessments -> Assessment 3 – Budget Report -> “MAA103 Budgeting Assignment.xlsx”. Page 6 of 8 Part B – Written Letter of Advice (18 marks): In addition to the budget report spreadsheet, your manager would like your team to provide a letter of advice to the client (max. 1000 words). In the letter, your manager has asked you to clearly outline which project you chose to analyse, highlight the key results from your analysis surrounding the budgeted income statement and cash budget. In your discussion, your manager would like you to make a suggestion on how the clients could improve the financial success of the project. Additionally, your manager would like your team to identify and discuss TWO non-financial issues that the clients should consider when deciding about the project. In your discussion, clearly explain to the clients how these issues might impact positively/negatively on the ultimate decision. Lastly, your letter should clearly indicate your recommendation as to whether the client should proceed with the chosen project
Type of service-Academic paper writing Type of assignment-Research Paper Subject-Accounting Pages / words-5 / 1375 Academic level-Freshman (College 1st year) Paper format-Harvard Line spacing-Double Language style-AU English