ACCT1501 Practice Exam Questions & Solutions QUESTION 1 (10 marks) 2015S2 Accounts Receivable Rupert Ltd maintains subsidiary ledgers for debtors and creditors. At 31 May 2014, the debtors control account has a debit balance of $50,120 and the creditors control account has a credit balance of $30,670. An extract of totals from the special journals for the month of June 2014 is as follows: $ Credit sales 86,500 Cash sales 6,100 Credit purchases 93,200 Cash received from debtors
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made me understand that I needed to make some adjustments especially since I was only at 3% market share with the workhorse line – I dropped the line completely. I made the decision to drop the workhorse after reviewing my profit and loss statements. I viewed this as a low profit item that was taking away from cash assets that could be best used to catapult our traveler line and this was the overall cause of having to take the emergency loan with the loan shark. My overall goal was to regain market
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Billabong Company is an Australian company. It spread the business in different countries. They are wholesaling and retailing of surf, skates, snows and sports apparel etc and has licence of group trademarks and to spread the business in different region of the world. In the early days the products were made by themselves and sold through local surf shop. The products were sold and customers were found satisfied due to which demand for the products rose, day by day. During 80s company start its
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Turnover Ratio 6 E. Days in Inventory 6 F. Receivables Turnover Ratio 7 G. Average Collection Period 8 II. Solvency Ratios 8 A. Debt to Assets Ratio 8 B. Times Interest Earned 9 III. Profitability 9 A. Earnings Per Share 9 B. Gross Profit Rate 10 C. Profit Margin Ratio 10 D. Return on Assets Ratio 11 E. Asset Turnover Ratio 11 REFERENCES 12 EXECUTIVE SUMMARY The succeeding report provides an analysis and assessment of the current and prospective profitability, liquidity and financial
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effective in promoting sales. The company also uses these statistics to promote sales, although its advertising efforts have been quite limited. The Main Competitor Two Wheel Racing, Inc. is the only other manufacturer that offers a competitive product in this market space. Their product weighs only a few ounces more than the bikes made by Competition Bikes, Inc. but Two Wheel Racing builds a chain driven product. Two Wheel Racing, Inc. is also a publicly traded company. Their financial ratios are provided
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as the basis of information. Each period is to be compared to determine whether companies have to alter their management, concerning asset management during times of crisis. Companies now days have to find another ay to gain assets because without financial resources, companies cannot survive in these turbulent times or even in normal circumstances. This study will provide a quick view of how manufacturing companies in the Philippines manage their assets during crises and non-crises period. Researchers
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from manufacturing in that manufacturing typically involves mass production of similar items without a designated purchaser and construction is typically done on location for a known client. Construction as an industry is six to nine percent of the gross domestic product of developed countries. Construction starts with planning, design, and financing and continues until the project is built and ready for use. Large scale construction is a feat of human multitasking. A Project manager normally manages
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| Simpson Manufacturing Co. began making structural connectors in 1956 and today is an international company that manufactures many different products for use in
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greater than 1; increasing ratio is not necessarily good, may be an indicator that receivables are not being collected, or cash is idle =(current assets-inventories and prepayments)/(current liabilities) Cash asset ratio =(cash+marketable securities)/(current liabilities) Cash conversion cycle – also known as operating cycle; shorter cycle = more liquid working capital =days inventory+days receivable-days payable Efficiency – how well company uses assets and liabilities internally Asset turnover
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overhead cost. Sum the overhead and direct cost to get the total cost; this will be the total cost of producing a batch of beer label. Therefore, we need to divide them up by the bottle per batch in order to know the cost per each bottle for each label. As shown in Exhibit 2, I have determined the allocation rate of each cost driver, and that will allow me to assign them to different cost pool; base on the activities. Adding up all the number I assigned, will give me the overhead cost for each label
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