Anyone good at accountancy?

Post » Sat Jun 18, 2011 1:13 am

I got homework in which I need to check a companies figures and then say whether I think it is a retailer or a manufacturer and why.

If I post the figures can anyone take a look and help?

Edit: Posted the numbers.
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Dorian Cozens
 
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Post » Sat Jun 18, 2011 11:36 am

Post the figures.
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Rebecca Dosch
 
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Post » Sat Jun 18, 2011 8:06 am

I got homework in which I need to check a companies figures and then say whether I think it is a retailer or a manufacturer and why.

If I post the figures can anyone take a look and help?

Yeah, Show me the money.
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rebecca moody
 
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Post » Fri Jun 17, 2011 8:32 pm

Yeah, Show me the money.


*looks at avi*

*looks at post*

:rofl:
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Vera Maslar
 
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Post » Sat Jun 18, 2011 3:26 am

I require numbers. :grad:
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Bethany Watkin
 
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Post » Sat Jun 18, 2011 3:31 am

So this is all information I have about the business:
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Active Daily Limited is to raise an additional $50,000 from the bank by way of a long term loan and an overdraft to finance the expansion of its premises and the purchase of freezers for its business activity.

2009

Purchases: 72,000
Sales: 225,000
Cost of goods sold: 70,000
Expenses: 110,000

2010

Purchases: 95,000
Sales: 278,000
Cost of goods sold: 93,000
Expenses: 117,000

2009
FIXED ASSETS
Premises: 100,000
Equipment: 65,000
Motor Vehicles: 40,500
TOTAL: 205,500

CURRENT ASSETS
Stock: 3,500
Debtors: 30,000
TOTAL: 33,500

CURRENT LIABILITIES
Creditors: 10,000
Bank overdraft: 14,000
TOTAL: 24,000

Working capital: 9,500
Net Assets: 215,000
FINANCED BY
Authorised and Issued Share Capital: 100,000 Ordinary share of $1 each fully paid: 100,000
Reservecs: 80,000
Shareholders' Funds: 180,000

Long Term Liabilities
Long term loan: 35,000
TOTAL: 215,000

2010

FIXED ASSETS
Premises: 98,000
Equipment: 90,250
Motor Vehicles: 77,450
TOTAL: 265,700

CURRENT ASSETS
Stock: 5,500
Debtors: 31,300
TOTAL: 36,800

CURRENT LIABILITIES
Creditors: 12,000
Bank overdraft: 10,000
TOTAL: 22,000

Working capital: 14,800
Net Assets: 280,500
FINANCED BY
Authorised and Issued Share Capital: 100,000 Ordinary share of $1 each fully paid: 100,000
Reserves: 148,800
Shareholders' Funds: 248,000

Long Term Liabilities
Long term loan: 32,500
TOTAL: 280,500

Now the ratios:
Gross profit ratio:
2009: 68.89%
2010: 66.55%

Net profit ratio:
2009: 20%
2010: 24.46%

ROCE
2009: 20.93%
2010: 24.24%

Expense to sale ratio
2009: 48.49%
2010: 42.09%

Current ratio
2009: 1.4:1
2010: 1.67:1

Quick Asset ratio
2009: 1.25:1
2010: 1.42:1

Debtors collection period
2009: 49 days
2010: 42 days

Creditors collection period
2009: 53 days
2010: 48 days

Stock turnover
2009: 20 times
2010: 17 times
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Okay, that's all there is to it. There can be several right answers. The whole point is to use the figures to decide whether it is a retailer or manufacturer and what kind of product it deals with. When you answer you need to make sure to include figures and explain why you think this figure tells us that the company is what you think it is. I sat down with the teacher for 20 minutes throwing at him all kinds of ideas but all that did was make him smile.
The formatting has nothing to do with the answers so underlined names are not more important or anything.

Thanks a lot to anyone who bothers reading this and writing an answer, I'll love you forever!
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Emerald Dreams
 
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