Is there a cash inflow from operations? Review of Income Taxes. (4) Discuss any deferred tax asset/liability and income tax expense (5) Conclusion: Is the company profitable? What determines profitability? Would you invest in the company or lend them money? Which components of the annual report were most relevant in your analysis?

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Comprehensive Project

Locate Tapestry Inc (TPR) locate its latest annual report (Foreign Company – Form 20-F; US Company – Form 10-K) on . Complete the following for the paper: (1) Description of Company: Primary type of business, Domestic/Foreign, History of company, Fiscal year end Stock exchange and symbol for trading. Name of the chairman and any information on the Board of Directors Discussion of Disclosures. (2)Pertinent information from Management’s Discussion and Analysis:

Description of ongoing litigation, Risk analysis, Analysis of Balance Sheet, Review balance sheet for large or unusual items and classifications, Analysis of Income Statement, Review income statement for large or unusual items and classifications, Analysis of Cash Flow Statement (3) Discuss any major cash inflows or outflows

Is there a cash inflow from operations? Review of Income Taxes. (4) Discuss any deferred tax asset/liability and income tax expense (5) Conclusion: Is the company profitable? What determines profitability?

Would you invest in the company or lend them money?

Which components of the annual report were most relevant in your analysis?

What is the future of the workplace in 2040 and what are the challenges that professionals must address? What are possible scenarios and solutions?

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The future of the workplace from the perspective of Managerial Accounting

What is the future of the workplace in 2040 and what are the challenges that professionals must address? What are possible scenarios and solutions?

Write a discussion post that identifies real world goods or services that have elastic/inelastic demand.

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Elastic vs Inelastic Demand

Write a discussion post that identifies real world goods or services that have elastic/inelastic demand.

*Name a specific good or service that has inelastic demand (it has a steep demand curve).
*Explain why quantity demanded does not change in response to an increase or decrease in price.
*Then name a specific good or service that has elastic demand (it has a relatively flat demand curve).
*Explain why quantity demanded does change a lot in response to an increase or decrease in price.
*Which of these two goods is most likely to be taxed.

Example: The demand for gasoline is relatively inelastic. If the price of gas increases, people still have to drive to work and/or school. Therefore, when the price of gas increases people do not reduce the amount of miles they drive per week very much. Similarly, if the price decreases people won’t start driving all over the place the state just because gas is cheap. On the other hand, the demand for peanuts is relatively elastic. If the price of peanuts increases by a lot, many people would simply stop purchasing peanuts and start buying some other snack (almonds, cashews, etc.). Even if the prices for all nuts was to increase then many consumers would just start buying chips or crackers as a substitute to nuts. The availability of substitutes is the main reason that gasoline has a steeper demand curve relative to peanuts. Peanuts have a lot of substitutes, while gas for your car does not have many substitutes at all. Most people who drive are not willing to start taking the bus or riding a bicycle if the price of gasoline increases.

Write a post describing a good or service that is either a compliment or a substitute. Explain what will happen to the equilibrium price and quantity of the good you choose if the price of the compliment or substitute good increases.

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A good/ service

Write a post describing a good or service that either a compliment or a substitute

*Be specific in describing what different goods or services serve as a possible substitutes or compliments for the good or service you choose.
*Give at least one specific example of a good or service that is either a substitute or compliment to the good you choose.
*Explain what will happen to the equilibrium price and quantity of the good you choose if the price of the compliment or substitute good increases.

Example: Tea and coffee are substitutes. Both tea and coffee are caffeinated beverages that people consume when they want to feel more awake. If the price of tea was to increase significantly, the demand curve for coffee would shift to the right. That is, more people would want to buy coffee at each price as some consumers would switch from tea to coffee in response to the increase in price. The equilibrium price and quantity of coffee would both increase as a result of an increase in the price of tea.

Describe the company, including business sector, products sold, competitors, and the geographic area where business is conducted. Discuss cyclicality associated with the company’s product sales and any other information relevant to the particular business or its industry. Include any other items relevant to this business or its industry. Assume the reader knows little about the company.

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Collaborative Learning Community (CLC) assignment

  1. Describe the company, including business sector, products sold, competitors, and the geographic area where business is conducted.
  2. Discuss cyclicality associated with the company’s product sales and any other information relevant to the particular business or its industry. Include any other items relevant to this business or its industry. Assume the reader knows little about the company.
  3. Synthesize the information from each of the press releases or articles collected by the group members and explain why this information is significant in comparing the company’s current market share to that of its competitors.
  4. Compare the company’s advantage and products to relevant industry competitors. Include justification of your competitor selection

Calculate the priority ranking of the product. Determine the desired production level and the maximum contribution that can be obtained. efly outline five benefits that can be obtained by preparing a budget. Outline four disadvantages or limitations that are associated with budgeting.

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The Council of Community Colleges of Jamaica Page 9

SECTION B

Instructions: Answer any three (3) questions from this section.

Question 1
a. Kingston Baker’s Ltd. most recent monthly contribution format income statement is given below:
Sales ………………. $60,000
Less variable expenses .. 45,000
Contribution margin ….. 15,000
Less fixed expenses ….. 18,000
Net loss ……………. ($ 3,000)
The company sells its only product for $10 per unit. There were no beginning or ending inventories.

Calculate:
i. the company’s contribution margin ratio? (2 marks)
ii. the breakeven points in units and in dollar sales? (4 marks)
iii. the total variable expenses at the break-even point? (4 marks)
iv. If unit sales were increased by 25% and fixed expenses were reduced by $4,000 at the current level of sales, what would be the company’s expected net income?
(Prepare a new income statement.)

b. The following monthly budgeted data is available for the Hardrock plc:
Product A Product B Product C
Sales…………….. $660,000 $380,000 $660,000
Variable expenses….. 396,000 266,000 528,000
Contribution margin… $264,000 $114,000 $132,000
Budgeted net income for the month is $260,000.

Calculate:
i. the break-even sales for the month given the sales mix. (5 marks)
ii. the margin of safety. (4 marks)

Question 2
a. Industries Ltd produces and sells a single product. A standard cost card for the product follows:
Standard Cost Card–per unit of product:
Direct materials, 4 Metres at $4.00 …….. $16.00
Direct labor, 1.5 hours at $10.00 ……… 15.00
Variable overhead, 1.5 hours at $3.00 ….. 4.50
Fixed overhead, 1.5 hours at $7.00 …….. 10.50
Standard cost per unit ……………….. $46.00

The company records showed no beginning or ending inventories for the year The company manufactured and sold 18,000 units of product during the year. A total of 70,200 Metres of material was purchased during the year at cost of $4.20 per Metre. All of this material was used to manufacture the 18,000 units. The company worked 29,250 direct labor-hours during the year at a cost of $9.75 per hour. Overhead cost is applied to product s on the basis of direct labor-hours. The denominator activity level (direct labor-hours) was 22,500 hours. Budgeted fixed overhead costs as shown on the flexible budget were $157,500, while actual fixed overhead costs were $156,000. Actual variable overhead costs were $90,000.
Required:
i. Compute the direct materials price and quantity variances for the year.
ii. Compute the direct labor rate and efficiency variances for the year.
iii. Compute the variable overhead spending and efficiency variances for the year.
iv. Compute the fixed overhead budget and volume variances for the year.

b.
i. Define the term standard and give two principal uses of standard costing.
ii. Distinguish between ideal standards and attainable standards

Question 3
Part P60 is used in one of Wallton Ltd.’s products. The company’s accounting department reports the following costs of producing the 7,000 units of the part needed every year.
Direct Material $7.00
Direct Labour 6.00
Variable overheads 5.60
Supervisor Salary 4.70
Depreciation of special equipment 1.50
Allocated general overheads 5.40
An outside supplier has offered to make the part and sell it to the company for $28.30 each. If this offer is accepted, the supervisor’s salary and all of the variable costs, including direct labour, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier’s offer was accepted, only $9,000 of these allocated general overhead costs would be avoided.

Required
a. Prepare a report that shows the effect on the company’s total net operating income of buying part P60 from the supplier rather than continuing to make it inside the company.
ii. Which alternative should the company choose? (10 marks)

b. The following details are available regarding three products X Y and Z
Product X Y Z
Desired production (units) 1,000 2,000 500
$ $ $
Selling price per unit 35 25 15
Variable cost per unit 15 10 5

A special machine is used to manufacture the three products and there are only 15,000 machine hours available.
Product X uses 20 machine hours per unit.
Product Y uses 5 machine hours per unit.
Product Z uses 2 machine hours per unit.

Required:
i. Calculate the priority ranking of the product
ii. Determine the desired production level and the maximum contribution that can be obtained. (15 marks)

Question 4
The Valder Ltd. commenced operations in December 2015 with a capital of $600,000 which was raised through an issue of 600,000 ordinary shares of $1 each. The proceeds of the share issue were paid into the company bank account. During the course of December a number of transactions took place and these are summarized below.
Cash summary December 2015
$ $
Proceeds from share issue 600,000
Less Leasehold premises (20 years) 300,000
Plant (est. life 10 years) 80,000
Equipment (est. life 10 years) 160,000
Tools 20,000
Raw materials 10,000 570,000
———- ———-
Cash balance available 30,000
======
The following additional information is available.
i. Sales are budgeted as follows: $80,000 in January; $160,000 in February and $240,000 in subsequent months. Fifty per cent of the sales will be cash sales and the other fifty per cent credit sales. The period of credit extended to customers will be one month.

ii. The cost of raw materials will amount to 40% of the sales revenue. Half the materials cost for any one month will be paid in cash; the other half will be paid for during the month of purchase.

iii. The company intends to keep a stock of raw materials of $10,000 throughout the year.

iv. Direct wages will be incurred at the rate of $50,000 per month. No time lag is expected here.

Other expenses- depreciation on premises, plant and equipment will be calculated on a straight- line basis. The tools will be re-valued annually and it is expected that annual losses will amount to 20 per cent. All other expenses will be incurred at the rate of $40,000 per month- payable one month in arears

Required
a. Prepare a cash budget for the first six months of 2016 for Valder Company. (16 marks)

b i. Briefly outline five benefits that can be obtained by preparing a budget (5 marks)
b ii. Outline four disadvantages or limitations that are associated with budgeting. (4 marks)


Question 5
Classic Windows. Ltd is considering to invest in two (2) machines that are mutually exclusive. Both machines are expected to have a useful life of four (4) years. Additional
information follows:
Machine A Machine B
$ $
Initial Investment 200 000 250 000
Cash Flow – Year 1 50 000 150 000
Cash Flow – Year 2 75 000 150 000
Cash Flow – Year 3 75 000 100 000
Cash Flow – Year 4 100 000 40 000
Estimated scrap value at end of Year 4 50 000
The company estimates the cost of capital at 20 % per annum.

Calculate:
a i. The payback period for each machine (4 marks)
a ii The net present value for each machine (12 marks)
a iii The profitability index for both machine (4 marks)

b i. Which machine would you recommend, give reasons for your answer. (2 marks)
b ii Outline three limitations of the payback period. (3 marks)

What is your company’s principal business activity? Who is the CFO? What is his/her accounting background? Is your company managing any ethical issues presently? If so, how do their actions affect their financial performance going forward?

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QUESTION ON WALMART

Question 1: What is your company’s principal business activity?

Question 2: Who is the CFO? What is his/her accounting background? Give as much detail here as you can find.

Question 3: Is your company managing any ethical issues presently? If so, how do their actions affect their financial performance going forward?

Question 4: Identify the last two years’ Revenue, Gross Profit, and EBIT for your company. Do all three totals increase from year to year? Decrease? Is there a mix? Explain what the trend is for your company and why.

Question 5: Does your company break down the data into geographic regions? If so, identify these regions/divisions. What region is performing the best and how do you know?

Question 6: What products and/or services does your company provide? Is there a mix of products that complement each other? Explain.

‘Zero-based budgeting enhances firm productivity.’ Discuss. In your evaluation, comment on: • what zero-based budgeting is and its features; • how zero-based budgeting is being used in the modern business environment.

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Assessment Brief – Management Accounting Coursework

Brief:
‘Zero–based budgeting enhances firm productivity.’ Discuss

Content requirements:
In your evaluation, comment on:
• what zero–based budgeting is and its features;
• how zero–based budgeting is being used in the modern business environment. You may use real–world examples to support your argument;
• advantages of zero–based budgeting over traditional methods of budgeting;
• the criticisms of zero–based budgeting and how the criticisms have been addressed.

Prepare the journal entries at 1 June 2021 in the accounting records of Matt Ltd to record the acquisition of Damon Ltd as well as any disclosures regarding the acquisition in the notes to the accounts at 30 June 2021. Prepare any journal entries at 2 September 2021 in relation to the provisional measurement of the machine.

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Corporate Accounting

Question 7.3
Accounting by acquirer
On 1 July 2021, Angelina Ltd took control of the assets and liabilities of Jolie Ltd. At this date the statement of financial position of Jolie Ltd was as follows:

Required
Prepare the journal entries in the records of Angelina Ltd at 1 July 2021 in each of the following situations, assuming the costs of issuing the shares by Angelina Ltd cost $1600.
(a) Angelina Ltd issued 80 000 shares having a fair value of $2.40 per share in exchange for the net assets of Jolie Ltd
(b) Angelina Ltd issued 80 000 shares having a fair value of $2.00 per share in exchange for the net assets of Jolie Ltd.
(c) Angelina Ltd acquired the shares of Jolie Ltd. The agreement was that Angelina Ltd would pay the shareholders of Jolie Ltd one share in Angelina Ltd for every two shares held in Jolie Ltd plus $1 in cash for each share held in Jolie Ltd. Shares in Angelina Ltd have a fair value of $1.80 per share. (LO5 and LO6)

Question 7.6
Accounting by the acquirer, provisional accounting, disclosures by the acquirer Matt Ltd was a pharmaceutical company operating in Brisbane while Damon Ltd operated a number of research laboratories on the Gold Coast, being particularly concerned with producing products that were related to the effects of mosquito bites. Matt Ltd believed that the acquisition of Damon Ltd would be of significant benefit to it as Damon Ltd had an excellent research facility that would add value to the products manufactured by Matt Ltd. It was prepared to pay a premium for the assets of Damon Ltd because of the high quality of the research staff of Damon Ltd and their ability to provide synergies between the two companies. On 1 June 2021, Matt Ltd acquired all the assets and liabilities of Damon Ltd. In exchange for these, Matt Ltd issued 50 000 shares. Based on recent market transactions, it was determined that these shares had a fair value at acquisition date of $3.04. At this date, Matt Ltd could only determine a provisional fair value for the machinery. Matt Ltd also recognised an intangible asset relating to research and development undertaken by Damon Ltd, but it was not recognised by that entity as it did not meet the recognition criteria under AASB 138/IAS 38 Intangible Assets. This asset was considered to have a fair value of $4000. Subsequent to the end of the reporting period of 30 June 2021, the final fair value was at 20% p.a. The assets and liabilities of Damon Ltd at 1 June 2021 were as follows:

Required
(a) Prepare the journal entries at 1 June 2021 in the accounting records of Matt Ltd to record the acquisition of Damon Ltd as well as any disclosures regarding the acquisition in the notes to the accounts at 30 June 2021.
(b) Prepare any journal entries at 2 September 2021 in relation to the provisional measurement of the machine. (LO5, LO8 and LO9)

Question 7.11
Accounting by an acquirer
Denzel Ltd and Washington Ltd are family-owned ginger producing companies operating in Buderim in Queensland. Denzel Ltd is owned by the Lewis family while the Meninga family owns Washington Ltd. The Lewis family has only one son, Wally, and he is engaged to the daughter of the Meninga family. Because the son is currently managing Denzel Ltd, it is proposed that, after the wedding, Washington Ltd be liquidated and Wally would manage the whole of the two companies’ assets. Information about the assets and liabilities of Washington Ltd at 1 January 2022 is as follows:
Denzel Ltd valued a brand at $40 000 that was used by Washington Ltd but had not been recognised by Washington Ltd as it was internally generated. The brand was considered
to have an indefinite life. The accounting records of Washington Ltd at 1 January 2022 did not include accrued interest on the loan of $12 000. The Lewis and Meninga families agreed to the following terms in relation to the joining together of the two companies.

x Denzel Ltd is to acquire all the assets of Washington Ltd except for cash and one of the vehicles (having a carrying amount of $40 500, and a fair value of $43 200) and assume all the liabilities except for the loan from the Broncos bank and any accrued vehicle will be given to Mr and Mrs Meninga. Washington Ltd will go into liquidation.

x Denzel Ltd is to supply sufficient additional cash to enable the loan from the Broncos Bank to be paid off and to cover the liquidation expenses of $4950. It will also give $135 000 to be distributed to the Meninga family to help pay for the cost of the wedding.

x Denzel Ltd is to give a piece of its land in the Buderim Hills overlooking the Maroochydore coastline to Washington Ltd to be distributed to the Meninga family to build a retirement home. The land is recorded in the records of Denzel Ltd at $72 000 and has a fair value of $198 000.

x Denzel Ltd is to issue 100 000 shares these having a fair value of $12.60 per share. These are to be distributed via Washington Ltd to the daughter of Mr and Mrs Meninga to give her a continuing interest in the family business.

x The business combination occurred on 1 January 2022as per the agreement with Denzel Ltd incurring legal and accounting costs of $22 500 and share issue costs of $16 000.

Required
Prepare the journal entries in the records of Denzel Ltd to account for the business combination. (LO5)

Analyse and provide recommendations to improve the operations of organisations through the application of managerial accounting techniques. Apply techniques associated with costing systems, cost management systems, budgeting systems and performance measurement systems.

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Case study

TEAM MEMBERSHIP
This Team Assignment must be submitted in teams of up to 5 members. The final submission will be assessed on its merits irrespective of the number of members in a team.

LEARNING OUTCOMES
The primary objectives of the assignment are to examine your ability to:

(a) analyse and provide recommendations to improve the operations of organisations through the application of managerial accounting techniques,

(b) apply techniques associated with costing systems, cost management systems, budgeting systems and performance measurement systems,

(c) appreciate the need for a balance between financial and non-financial information in decision making, control and performance evaluation applications of managerial accounting,

(d) learn within teams – to cooperate with team members, to assume leadership and to manage differences and conflicts, and

(e) tolerate ambiguity in managerial and organisational problem-solving Consequently, you should be able to analyse complex issues, to formulate well-reasoned and coherent arguments and to reach well-considered conclusions. Also, you should be able to present these conclusions via a written format appropriate for the real-life business environment, and be able to perform the necessary processes to prepare internal reports for decision-making purposes