Task 01 Activity A - Important Notes: According to company strategic plans‚ the company aims to achieve a net profit before tax of $1‚000‚000. The chief risks to this goal are: poor sales due to economic downturn increases in expenses such as wage expenses. In addition to Australian operations‚ the company is considering manufacturing overseas to take advantage of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor sales of one product. Sales
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Year Ended December 31‚ 2009 | Sales revenue | | $360‚000 | Less: Operating expenses | | | Salaries | 180‚000 | | Employment taxes and benefits | 34‚600 | | Supplies | 10‚400 | | Travel & entertainment | 17‚000 | | Lease payment | 32‚400 | | Depreciation expense | 15‚600 | | Total operating expense | | 290‚000 | Operating profits | | $ 70‚000 | Less: Interest expense | | 15‚000 | Net profits before taxes | | $ 55‚000 | Less: Taxes (30%)
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BFN1014 Financial Management I (Semester 53) BFN1014 Financial Management I TUTORIAL 1 (Week 2): Tutorial Questions Chapter 1: The Role of Managerial Finance Review Questions 1-3 Which legal form of business organization is most common? Which form is dominant in terms of business revenues? What is the goal of a firm and‚ therefore‚ of all managers and employees? Discuss how one measures achievement of this goal. What are the major differences between accounting and finance with respect to emphasis
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accounts section in General Ledger. E.g. Rent expense‚ stationary‚ electricity‚ wages‚ etc. Answer: -uniforms to sell -refreshments to sell -electricity -water -rent expense -salaries/wages -stationary Question Three: Answer: • Membership Fees: –also known as subscriptions. -usually most important income (revenue) to a club‚ major portion. -together with additional income‚ cover expenses. -fixed amount. -paid by members of club
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accounts that results in a better matching of expenses with revenues is the a. aging accounts receivable method b. direct write-off method c. percentage of receivables method d. percentage of sales method 2. Using the percentages of receivables method for recording bad debts expense‚ estimated uncollectible accounts are $25‚000. If the balance of the Allowance for Doubtful Accounts is $8‚000 debit before adjustment‚ what is the amount of bad debts expense for that period? a. $25‚000 b. $8‚000
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at a "bargain price" at the end of the lease term‚ the present value of the lease payments‚ discounted at an appropriate discount rate‚ is less than or equal to 90% of the fair market value of the asset (Stickney 479). Starbuck’s total rental expense for fiscal year 2009 was $714.7 million. Starbucks also provides an estimate for minimum future rental payment for non-cancelable operating leases of $4‚389.2 million. By comparison‚ capital lease obligations were $7.8 million for fiscal year 2009
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money from a bank. Selling stock. Paying off a loan. MC Qu. 117 Net Income: Net Income: Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus liabilities. Is the excess of revenues over expenses. Represents owners’ claims against assets. MC Qu. 150 The statement of cash flows reports all of t... The statement of cash flows reports all of the following except: Cash flows from operating activities. Cash flows from investing activities
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Incomes Profit from trading activities Subscriptions Income from investments Donations Income from other activities [dinner dance‚ raffles‚ festivals] Expenditure Depreciation $ $ XX XX XX XX XX XX XX 1 Salaries and wages Expenses on other activities [prizes] Loss from trading activities All
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Includes bargain purchase option. Note: There is a rounding error of $1. PREPARE A SCHEDULE OF LEASE PAYMENTS FOR PURPLE LTD. Note: There is a rounding error of $1. JOURNAL ENTRIES For Lemon Ltd: (Depreciation expense = [$29‚568 - $3‚600] / 5 years = $5‚194) For Purple Ltd: (Net Method) For Purple Ltd: (Gross Method) FINANCIAL STATEMENTS OF BOTH COMPANIES FOR YEAR ENDING 30 JUNE 2009 Lemon Ltd Extract of Financial Statement Note 5: Fees for
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company that sells books‚ is in an expansion period and the management has decided to carry out a Management Control to find improvement opportunities. One of the areas to review is the efficiency of the sales department‚ which includes the selling expense control. The controller has collected the following information: Activities and lines of product Books are sold on a door to door basis by the personnel in the selling department. Once the orders are placed‚ they are sent to the dispatch department
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