Get Instant Help From 5000+ Experts For
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing:Proofread your work by experts and improve grade at Lowest cost

And Improve Your Grades
myassignmenthelp.com
loader
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Attach file

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!
Free Quote
wave
Insights on Company Annual Reports, Budgeting Methods, Financial Ratios, and Budgeting Process of a
Answered

Question 1

Discuss the contents of companies’ annual reports, the information requirements of various stakeholders and the structure of the following accounts:

  • Income statement
  • Statement of comprehensive income
  • Statement of retained earnings
  • Statement of financial position

You should also explain the flow of information between these accounts.

Type your answer below. The box will expand as you type your answer.

Question 2

Discuss the characteristics of the following budgeting methods

  • Fixed budgeting
  • Flexible budgeting
  • Incremental budgeting
  • Zero-based budgeting

Evaluate the benefits and limitations of the budgeting process and explain how aspects of people behaviour may undermine the value of this process

Type your answer below. The box will expand as you type your answer.

Question 3

B Star Ltd had the following ratios at 31 December 2020 and 31 December 2019:

2020

2019

Gross profit margin

25%

28%

Return on Assets

7%

5%

Trade payable days

40 days

44 days

Trade receivable days

30 days

35 days

Inventory days

29 days

20 days

  1. Explain how each ratio in the table above is calculated
  2. Give possible reasons why the gross profit margin has decreased from 2019 to 2020.
  3. Give possible reasons why the return on assets has decreased from 2019 to 2020.
  4. What explanations could there be for B Star Ltd to be paying its trade payable 4 days more quickly in 2020 than in 2019.
  5. Explain what may have occurred to have led to the change in trade receivable days between 2019 and 2020.
  6. Explain what may have occurred to have led to the change in inventory days between 2019 and 2020.

Type your answer below. The box will expand as you type your answer.

Question 4

A mobile phone manufacturer, has the budget set out below for its product for the coming year:

£000s

£000s

Sales revenue (20,000 units)

5,000

Variable manufacturing costs

1,400

Other variable costs

400

Fixed manufacturing costs

2,800

Total costs:

         4,600            

Budgeted profit

 

  400

Required:

  1. Calculate the selling price, variable cost and contribution of each unit
  2. Calculate the break-even point in units
  3. What is the margin of safety in units and as a percentage (%)? 
  4. How many mobile phones should be sold to achieve a target profit of £1,000,000?
  5. The company has had an offer to utilize its spare capacity by making 500 new mobile phones for a price of £170 per unit. The directors intend to reject this offer as the price is well below the normal selling price. Advise the directors, with reasons, why the offer should rather be accepted. 

support
Whatsapp
callback
sales
sales chat
Whatsapp
callback
sales chat
close