Concluído

Help me with Accounting Task

I have to complete an accounting task. Please help me complete it. Here is the first question. There are 3 questions of similar difficulty. Many thanks

QUESTION 1 (10 Marks)

The following financial statements were prepared for the management of Morgan Ltd. The statements contain some information that will be disclosed in note form in the general purpose external financial statements to be issued to the investors.

Morgan Ltd

Income Statement

For the year ended 30 June 2018

Revenues (Note 2) $850,500

Expenses, excluding finance costs (Note 4) 686,700

Finance costs 6,300

-------------

Profit before income tax 157,500

Income tax expense 63,000

-------------

Profit $ 94,500

========

Morgan Ltd

Statement of Financial Position

As at 30 June 2018

Current assets

Cash and cash equivalents $ 37,800

Accounts receivables $299,250

Less: Allowance for doubtful debts 18,900

--------------

280,350

Inventories 252,000

_______

Total current assets 570,150

_______

Non-current assets

Land 63,000

Building $189,000

Less: Accumulated Depreciation 37,800

_________ 151,200

Store equipment 47,250

Less: Accumulated Depreciation 22,050

_________ 25,200

_______

Total Non-current assets 239,400

_______

Total assets 809,550

=======

Current liabilities

Accounts payables 270,900

Preference dividends payable 3,780

Ordinary dividends payable 25,200

Other current liabilities 12,600

_______

Total current liabilities 312,480

_______

Non-current liabilities

Long-term borrowings (Note 5) 63,000

_______

Total Non-current liabilities 63,000

_______

Total liabilities 375,480

_______

Net assets 434,070

=======

Equity

Share capital $315,000

Retained earnings 119,070

_______

Total equity 434,070

=======

Morgan Ltd

Statement of Changes in Equity

For the year ended 30 June 2018

Share capital

Ordinary:

Balance at start of period $252,000

________

Balance at end of period 252,000

________

Preference (Note 6):

Balance at start of period 63,000

_______

Balance at end of period 63,000

________

Total share capital $315,000

========

Retained earnings

Balance at start of period $53,550

Total profit for the period 94,500

Dividends – preferences (3,780)

Dividends – ordinary (25,200)

________

Balance at end of period $119,070

========

Notes to the financial statements

Note 2: Revenue

Sales $850,500

Note 4: Expenses

Cost of sales 567,000

Selling and distribution expenses 89,000

Administration expenses 30,700

Note 5: Long-term borrowings

10% mortgage payable 63,000

Note 6: Preference shares

6% preference shares 63,000

Additional information:

1. The balance of certain accounts at the beginning of the year are:

Accounts receivables $315,000

Allowance for doubtful debts (26,350)

Inventories 220,500

2. Total assets and total equity at the beginning of the year were $756,000 and $368,550 respectfully.

REQUIRED:

A. Name the ratios that a financial analyst might calculate to give some indication of the following cases: (2 Marks)

1. A company’s earning power

2. The extent to which internal resources have been used to finance acquisition of assets

3. Rapidity with which accounts receivables are collected

4. The ability of the entity’s earnings to cover its interest commitments

5. The length of time taken by the business to sell its inventories

B. Calculate and briefly discuss the suitability of the ratios mentioned for each of the above cases. (6 Marks)

C. Given the above financial statements, comment on the company’s profitability and liquidity. (2 Marks)

Habilidades: Contabilidade, Finanças, Pesquisa financeira, Excel, Análise Financeira

Veja mais: website revenue build share, online help accounting projects assignments, need help accounting, need help accounting project, need help accounting online exams, manufacturing accounting task, excel accounting task, grade accounting task term written report 2013, accounting task help manufacturing, accounting task, i need a job asap in accounting field i have a diploma pe, homework help accounting, how do i make changes in a pdf document, i need people share money for business, i want to share my photography website, i want to share my photography website in uae, I am looking for a freelancer to help me I have several hundred pages of hand written notes that I need typed into microsoft wor, I am looking for a freelancer to help me I have several hundred pages of hand written notes that I need typed into microsoft w

Acerca do Empregador:
( 0 comentários ) Melbourne, Australia

ID do Projeto: #20401571

Concedido a:

pkaranja595

I am a prolific and versatile article, blog, research and content writer with an exceptional command of both the US and British English and a great wealth of experience in coming up with master piece contents and artic Mais

$100 AUD em 7 dias
(0 Comentários)
0.0

5 freelancers estão ofertando em média $131 para esse trabalho

usmanhassan123

I am MBA accounts and finance. I am also (C.A) Finalist. With more then seven years of experience in a multinational Accounting firm. I am a financial analyst with vast knowledge of Accounts, Finance, Business and M Mais

$150 AUD em 1 dia
(79 Comentários)
6.2
Freelancersedo

Dear client? I will assure you of good quality that is free from any errors and plagiarism. I will provide an originality report to confirm that. I have access to enough journals to use in your accounting project. Con Mais

$150 AUD in 2 dias
(18 Comentários)
4.2
bloowebs

Hello, I AM AVAILABLE RIGHT NOW. If you like we can discuss this project. I can complete this task for you. I am technology specialist with several years experience in the fields of Data Science, Web Development, SE Mais

$55 AUD in 2 dias
(7 Comentários)
3.1
diluxen

Hi, I am an accounting professional and I hold a degree in International Business and Finance. I was engaged with KPMG for approx. 6 years and i can cater your requirement within the agreed timeline. We can negotiate Mais

$200 AUD in 5 dias
(0 Comentários)
0.0