1. Critically analyze the firm’s accounting policies and estimation techniques employed and comment on…
SOLUTION AT Australian Expert Writers
1. Critically analyze the firm’s accounting policies and estimation techniques employed and comment on how do they affect firm’s financial performance2. Do common size, trend and ratio analysis of the financial reports3. Calculate the basic and diluted EPS.4. Critically analyze firm’s comprehensive income and comment on how does this affect stockholders’ equity.5. Select a benchmark firm from the same industry and compare the firm’s performance with the benchmark.6. Compare firm’s performance with the industry average. (Hint: You may take average of the key market share holders of the same industry)7. Compile your findings in an investment report.I HAVE UPLOADED 2015 – 2016 2017-2018 2019 – HALF OF 2020 BALANCE SHEET OF INDUS MOTOR PLEASE ANSWER ALL ABOVE MENTION QUESTIONS THIS IS A COMPLETE QUESTION JUST ANALYSIS AND WRITE ALL THE CRITICAL BASE ANSWER FOR THE ABOVE BALANCE SHEET
Part B: Assessing control risks Cook’s Furniture uses a cloud-based enterprise management system (EMS). It has different functions such as
Part B: Assessing control risks Cook’s Furniture uses a cloud-based enterprise management system (EMS). It has different functions such as procurement, finance, HR, sales, production, warehouse etc. Different employees are given access to the area they are responsible for. Carl is given access to all area of the system. The access is controlled by personal login and passwords. Cook’s Furniture Purchase and Cash Disbursement Cycle Cook’s Furniture sources raw materials domestically as much as possible, but it also has multiple suppliers in different locations globally. Customised products range is made to order and the lead time for manufacturing process is 10-12 weeks when an order is placed. Other products (e.g. office chairs, ottomans) are made based on anticipated level of sales. As part of interim audit, Jane Owen the audit senior on this engagement has completed a ‘walk-through’ of the procedures for the inventory purchases and cash disbursement cycle. The following is a summary of the procedures she documented on the audit file: Rowan Jones, the factory manager is responsible for initiating orders for raw materials by using the production and warehouse management functions within the EMS. EMS system holds information of inventory item name, item code, quantities and costs. When an order for the customised products range is placed, Rowan assesses and calculates what the raw materials needed to manufacture the order. He checks EMS for the availability of raw material because some materials they may already have. If the raw materials are insufficient, Rowan generates a purchase order using the EMS. The EMS automatically assigns a reference number to the purchase order. For the ready-made range of products, Rowan usually re-orders when there is one month of products left in the warehouse. Given that Carl wants to maintain sufficient level of inventory to minimise backorders, Rowan normally generates a purchase order for three months’ production needs. The purchase orders completed by Rowan are sent to Thomas Chapman (the account payable clerk) via emails generated by the EMS at end of each working day. Thomas contacts any of the approved suppliers by phone or email regarding the availabilities of the materials they wanted. After he confirms with a supplier, he forwards the purchase order to the supplier and updates EMS to show the order is sent. No record is kept of the phone conversation with a supplier, nor does the purchase order needs to be approved before sending to a supplier.If a purchase order cannot be fulfilled by any of the approved suppliers, Thomas may look for a new supplier. When he obtains a quote from a new supplier, he passes the quote and the new supplier’s information to Claire, the CFO for approval. Once approved, Claire adds the new supplier into the approved supplier list. When goods are received in the warehouse, Tony Young, the warehouse assistant, checks the supplier’s delivery note against the physical stock coming in. Once it is confirmed that the materials agree to the delivery note, Tony initials and dates the delivery note and then passes it to Craig Tukiri the warehouse manager. Craig will then login to the inventory function within the EMS system to update the received materials. Once the inventory records are updated, the system updates Rowan that the orders have been received. Craig makes a copy of the supplier’s delivery note, files the original copy of the delivery note and forwards a copy of the delivery note to the accounting department. When inventory is updated in the prior step, EMS accounting function automatically generates a journal entry to update the accounting records. (Note: the journal suggested by the system is Dr Raw materials inventory; Cr Creditor). The system rejects the journal if the inventory item code or the name of supplier is not recognised. When the journal is accepted, the computer will generate a journal number. Thomas then writes the journal number onto the delivery note forwarded by the warehouse. Thomas files the delivery note by supplier names. Thomas the payable clerk receives all supplier invoices. On receipt of an invoice, he checks the details against the delivery note received from the warehouse. If there are no discrepancies, he prepares a payment requisition for the invoiced amount and forward the payment requisition together with the invoice and a copy of the corresponding delivery note to Claire for authorisation. Claire forwards to Carl the CEO for further authorisation any payments of over $30 000 for a single transaction. Claire and/or Carl signs the payment requisition to confirm authorisation and forwards the documentation to Kumar Singh, the banking clerk, who keys each payment into the accounting system (the journal posted by the system is Dr Creditor; Cr Bank). Once the journal is accepted by the system, the system generates a journal number which the banking clerk writes on the payment requisition. Kumar then files the payment requisition together with supporting documentations by the payment requisition number. The banking clerk then loads the payments on the online banking facility with reference to the payment requisition number. Both Claire and Carl must approve and release the payments. The banking system automatically sends electronic transfer records to Claire who subsequently forwards them to Thomas. Thomas then checksit against supplier invoices and then sends a remittance advice to individual suppliers. Question 3 Assessing control risk in the purchase and cash disbursement cycle a. Identify five control weaknesses in the purchase system. b. Explain how each control weakness may affect the financial statements (i.e. which accounts and assertions are at risk) c. identify the audit procedures to test the account(s) and assertion(s) that are at risk. Question 4 a. Identify six control strengths in the inventory system b. explain why each control is a strength (i.e. which accounts and assertions does it strengthen). c. For each control strength, identify audit procedures to test the effectiveness of control.Question 4: Substantive Procedures and Audit DocumentationAfter the end of the financial year, Jane Owen performed transaction tests of the inventory purchases and cash disbursement. She summarised the audit procedures she performed in the following workpaper (reference N-2). To ensure audit quality, BDC has a review policy which helps to ensure that each audit document provides a clear and complete indication of the procedures that were performed and that adequate evidence has been collected. For this audit, you must review and approve all audit workpapers. If you find any unclarity or issues in a workpaper, the workpaper is returned to the appropriate staff auditor for necessary and appropriate revision. REQUIRED: Review the audit work papers below. Prepare Jane a list of the concerns that are present in her work papers. For each point raised, give explanations why the documentation is not appropriate. Expand imageExpand image
1) When is revenue recognized under earnings approach? 2) Explain principal-agent relationship and what is the revenue for agents in
1) When is revenue recognized under earnings approach? 2) Explain principal-agent relationship and what is the revenue for agents in this relationship?3) In the consignment sale agreement, what is the revenue of the consignee?4) Explain the cost to cost basis in determining the progress toward completion of service contract5) Name 3 examples of cash equivalent6) What subsequent measurement basis for receivables? 7) A Corporation estimates that approximately 10% of its $1 million of trade receivables outstanding will be returned or a similar adjustment will be made to the sales price. What journal entry should Astro make to show expected sales returns and allowances under ASPE?8) If 25% of outstanding receivables are estimated to be uncollectible, what is the required journal entry need to be required under the allowance method? 9) Because of changes in the extent to which a piece of equipment is being used, Acompany decides to review it for possible impairment. The asset’s carrying amount is $600,000 ($800,000 cost less $200,000 accumulated depreciation). The expected future undiscounted net ash flows from the use of the equipment and its later disposal are estimated to be $650,000, and its fair value is $525,000. Use the recover ability test to determine if the asset would be considered impaired under the cost recovery impairment model 10) A Company receives a three-year, $10,000, zero-interest-bearing note, and the present value is known to be $7,721.80. Calculate and explain the implicit rate of interest (assumed to approximate the market rate) for the note and provide the related journal entry at the date of issuance11) B Corp. makes a loan to C Corp. and receives in exchange a $10,000, three-year note bearing interest at 10% annually. The market rate of interest for a note of similar risk is 12%. Calculate the present value of the note and prepare the journal entry to record the receipt of the note in exchange for cash equal to the fair value 12) if Accounts Receivable Turnover is 7 times, what does this mean? 13) Explain weighted average cost formula of inventory costing formula 14) At year-end, A company’s ending inventory cost and net realizable value were like the following. What would be the ending inventory value to be measured? Food Cost Net Realizable Value Cut beans $50,00 $40,000 Peas $90,00 $72,000 Mixed vegetables $95,000 $92,000 Spinach $80,00 $120,000 Carrots $100,000 $100,000 15) Provide 2 examples of inventory types that are exceptions to the LC
prepare a comprehensive report directed to an Australian ASX Top 100 listed corporation detailing a critical analysis of the effectiveness
prepare a comprehensive report directed to an Australian ASX Top 100 listed corporation detailing a critical analysis of the effectiveness of the corporation to meet the obligations of the conceptual framework of accounting also analyze the company’s accounting policies and corporate governance matters under the concepts such as accounting Theories, harmonization, standards settings, positive accounting theories, normative theories, measurement approaches and others.
Please see attached picture for the question. Instructionsa. T accounts and enter the August 31 balances.b. Journalize the September transactions.c.
Accounting Assignment Writing ServicePlease see attached picture for the question. Instructionsa. T accounts and enter the August 31 balances.b. Journalize the September transactions.c. Post to T accounts.d. trial balance at September 30.e. Journalize and post adjusting entries.f. adjusted trial balance at September 30.g. income statement and a statement of owner’s equity, and a classified balance sheet.h. post closing entries.i. Prepare post-closing trial balance at September 30.
One of your clients, Corey Hart, is the sole director and sole shareholder of Sunglass World Pty Ltd. The company
One of your clients, Corey Hart, is the sole director and sole shareholder of Sunglass World Pty Ltd. The company is a retail store that specialises in selling a range of designer-label high-end sunglasses. The company is registered for the GST and accounts for the GST on the non-cash (accruals) basis. The company has three stores – one in the Brisbane CBD, the other in Indooroopilly and the third store in Surfers Paradise on Queensland’s Gold Coast.The company was incorporated in Australia in May 2010. The company had a turnover of $2.4 million in 2019 and is expecting a turnover of approximately $2.6 million for the 2020 financial year. The company is likely to have a taxable income of approximately $160,000 in respect of the year ended 30 June 2020. Corey informs you that on 17 November 2019, the company acquired a new motor vehicle, a 2019 Mercedes C350 Class Sedan, which was financed via a chattel mortgage agreement. A copy of the tax invoice for the purchase of the new car is attached for your reference on the following page. 2019 Mercedes C350 Class Sedan MERCEDES BENZ BRISBANE TAX INVOICE 194 Breakfast Creek Road ABN: 23 004 411 410 Newstead, QD, 4006. SOLD TO: INVOICE NUMBER: 4126 INVOICE DATE: 17 November 2019 Mr Corey Hart ORDER NUMBER: 8633 Sunglass World Pty Ltd SALES REPRESENTATIVE: Mr Michael Sembello 14 Queen Street Brisbane, QLD, 4000. 2019 Mercedes C350 Class Sedan 81,000.00 Colour trim 2,156.50 Seat comfort package 1,872.00 Sunroof 2,448.00 Vision package 1,416.90 Registration fee * 513.50 Compulsory third party (CTP) insurance * 640.18 Dealer delivery charges 4,753.04 Stamp duty 2,912.34 Luxury car tax 2,287.54 Total amount payable (drive away price): $ 100,000.00 Payments received: Hightower Finance Company – chattel mortgage $ 100,000.00 Balance due: $ 0.0 * Amounts are shown inclusive of GST (where applicable). All amounts shown above totalling $100,000 have been charged to the customer by the motor car dealership. Assume that in this PBL, the CTP insurance of $640.18 shown above is exclusively GST-free. In practice, CTP insurance has a component that is GST-free (the stamp duty component) and a component that is taxable. There is no GST on the registration fee. Hint: For each of the costs detailed above that make up the total of $100,000, students need to work out which costs would be capitalised (and therefore form part of the cost of the motor vehicle in the Balance Sheet) and which costs would be expensed to the Income Statement. QUESTION:(i) Prepare a letter to Corey advising him as to how much is tax-deductible to the company in relation to this transaction for the year ended 30 June 2020. Please show your calculations.
This data was from Jeremy Siegel’s books, “The Future for Investors”Stocks for the Long Run”real and “. Siegel tells us
This data was from Jeremy Siegel’s books, “The Future for Investors”Stocks for the Long Run”real and “. Siegel tells us that, over the period from 1802 – 2005, the long-run average return in the US equity market is 6.8% and it is 3.5% in the bond market. Based on Siegel’s data, answer the following three questions.Based on Siegel’s data, with long (30 year) holding periods, which of the following asset classes has the smallest risk, as measured by standard deviation?a. Common Stockb. It is Impossible to knowc. Treasury Billsd. Bonds
Rick George, Director of ticket sales for Translink, recently put out an RFQ for the supply of new ticketing machines
Rick George, Director of ticket sales for Translink, recently put out an RFQ for the supply of new ticketing machines for Skytrain. Translink needs to purchase Thirty (30) new ticketing machines each year for the next five years. In order to bid on the project, you will need to acquire $750,000 of new, specialized metal forming equipment. This equipment is a class 8 asset with a 20% CCA rate, calculated using the Accelerated Investment Incentive method. You believe that you will be able to sell the new equipment for $100,000 at the end of the project. It will cost you $5,000 in labour and supplies to produce each ticketing machine and your fixed overhead will cost $100,000 per year. Net working capital will rise by $50,000 initially but this will all be recovered at the end of the project. Your firm’s tax rate is 40% and the firm’s cost of capital is 20%. How much should we bid to produce each new ticketing machine?The correct value to use for Step #2 – the PV of the incremental, after-tax costs
You have been invited to join the cross-discipline Strategic Management Committee of Jupiter Australasia Ltd as the management accounting representative.
You have been invited to join the cross-discipline Strategic Management Committee of Jupiter Australasia Ltd as the management accounting representative. The key issue facing this top level management committee at the moment is how to improve profitability in several key product categories.The product currently under discussion is the ‘O Sole Mio’ range of pasta sauces sold through the major supermarket chains in Australia and New Zealand. Internationally, across the whole of the Jupiter Group, the expected Return on Total Assets (ROTA) for every product category is 20%. Despite being a successful brand over a long period of time the ROTA for ‘O Sole Mio’ has fallen below the investment return hurdle rate and the Committee is considering whether to continue with the product or exit this market niche.As the Management Accounting representative you have provided the Strategic Management Committee with the following breakdown of revenues and costs for the ‘O Sole Mio’ pasta line for the just completed 2020 year:The O Sole Mio Marketing team advises you that at the end of the 2020 financial year O Sole Mio’s market share had fallen in 12 months from 80% to 60% of the total Australasian pasta sauce market of 10 million units. The Marketing team noted that a new product in the market ‘Dullmio’ pasta sauce (manufactured by international FMCG competitor Heinzzze) has grabbed 25% of the total market by aggressively discounting their product and advertising heavily. The total size of the pasta sauce market is expected to remain stable at 10 million units per annul.The O Sole Mio Marketing team believe that by discounting the current O Sole Mio wholesale price by $0.50 from $4.75 to $4.25 the product will be much more competitive and they predict that O Sole Mio unit sales will increase by 25% from their 2020 levels. The research and development team have identified that by changing suppliers and slightly altering the raw ingredient mix a saving of 10% can be made on prime costs.The CEO of Jupiter Australasia Ltd who chairs the Strategic Committee advises that, even allowing for the 10% reduction in prime costs, discounting the product by $0.50 per unit will mean that the O Sole Mio product will no longer achieve the firm’s required return on total assets (ROTA) of 20%. ROTA is calculated by dividing Gross Profit by Total Assets and currently sits at 18%. The CEO argues that if this remains the case the previously successful ‘O Sole Mio’ product line may have to be discontinued.You advise the Committee that you are aware that the ‘O Sole Mio’ manufacturing facility is currently running at only 65% of its practical capacity and that the warehouse facility (logistics) is running at 45% capacity. Because of the high level of automation in manufacturing the pasta sauce, whilst the ‘O Sole Mio’ product Prime Costs are 100% variable, Other Manufacturing Costs and Logistic Costs are made up of 90% Fixed costs and 10% Variable costs.It can be assumed that this cost break-down between variable and fixed costs will hold consistently across the industry (including for the competitor ‘Dullmio’). Assume 75% of the predicted ‘O Sole Mio’ unit sales increase will be made at the expense of ‘Dullmio’, their main competitor’s unit sales. Finally, assume that ‘Dullmio’ product costs start out the same as ‘O Sole Mio’ and that the competitors make no immediate competitive adjustment to their offering.You ask if you can be given time to analyse a report for the Strategic Committee on the cost and profit implications of the proposed changes and the resultant increase in sales and production.Required:(a) Using excel analyse ‘before and after’ comparative analysis of the revenues and costs of the ‘O Sole Mio’ product line incorporating the 25% predicted sales increase and the 10% predicted savings in prime costs (Ensure you include any impact of the production increase on manufacturing and logistics costs in your analysis). (b) briefly discuss findings for the Strategic Management Committee outlining the key points of your findings. Include some discussion on: The likely impact of the changes on the cost and profit structure of the O Sole Mio product line (derived from your answer to (a)).Calculate and discuss the likely impact of the changes on the cost structure (and profitability) of ‘Dullmio’ our main competitor (use Excel).Make a recommendation to the Committee on whether to go ahead with the planned changes. Include any other strategic advice that you consider relevant to the Committee’s decision making.
a. $8 100b. $6 075c. $6 300d. Nil, as the leave is non-vesting. Treloar Ltd has 10 employees, who are
a. $8 100b. $6 075c. $6 300d. Nil, as the leave is non-vesting. Treloar Ltd has 10 employees, who are each paid $750 per week for a 5 day working week. Each employee is entitled to 8 days accumulating non-vesting sick leave per year. At 1 July 2022 the accumulated untaken leave was 16 days in total. During the year ended 30 June 2023 a total of 50 days sick leave was taken, of which 8 days were unpaid leave. Of the accumulated untaken leave at 30 June 2023 it is estimated that 75% of it will be taken during the following year. The balance of the provision for sick leave at 30 June 2023 is:Select one:
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