Accounting , Finance, Management, Cost, Auditing Assignment

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Sheet1

Minden Company
Balance sheet
As at March 31
Assets
Cash 9,000
Account Receivables 54,000
Inventory - 0
Buildings and Equipments 207,000
Total Assets 270,000
Liabilities & Equity
Account Payable 63,000
Note Payable 14,500
Common Stock 180,000
Retained Earning 12,500
Total Liabilities & Equity 270,000
- 0

Part I

Particulars UOM Amount
Selling Price per Box Bhd 120
Cost Bhd 50
Fixed Expenses Bhd 10,000
Break Even Point Boxes 143

Part II

Schedule 1: (Projected Sales Budget)
March April May June July
50% 20% 20%
Sales (Boxes) 143 214 257 309
Sales (Bhd) 17,143 25,714 30,857 37,029 July
37,029
Analysis :
As the company is expecting increase in sales to be 50% in May and 20% (of the previous month sales )in every next month.this table indicates the increase in both Bhd and boxex as well
Schedule 2: (Collection Schedule)
April May June
17,143 25,714 30,857
April May June May June July June July August
50% 30% 20% 50% 30% 20% 50% 30% 20%
8,571 5,143 3,429 12,857 7,714 5,143 15,429 9,257 6,171
(In Bhd)
March April May June
Collection 62,571 18,000 26,571
Analysis
As describe in the problem given 50% of the sales amount will be recovered in the same month 30% will be received in the next month and the remaining 20% will be recovered in the 2nd month of sales
Schedule 3: (Purchase Schedule)
April 10% Total May 10% Total June 10% Total
17,143 1,714 18,857 24,000 2,400 26,400 28,457 2,846 31,303
March April May June
Purchase (Bhd) 18,857 26,400 31,303
Purchase (Boxes) 157 220 261
Analysis
As mentioned 10% of the sales will be taken as safety stock so we have to purchase that stock so that it will be available before the month start.as above we are taking 10% stock and substracting it from the next month purchase of stock as we already have purchased it.
Schedule 4: (Payment Schedule)
April May June
18,857 26,400 31,303
April May May June June July
40% 60% 40% 60% 40% 60%
7,543 11,314 10,560 15,840 12,521 18,782
(In Bhd)
March April May June
Payment 70,543 21,874 28,361
Analysis
as above 40% of the price of good purchased will be given in the same month and remaining will be paid in the next month.
Schedule 5: (Cash Budget Schedule)
(In Bhd)
March April May June
Opening Cash - 0 9000 30,929 20,554
Received During the Month 62,571 18,000 26,571
Total 71,571 48,929 47,126
Borrowing 30,000 - 0 20,000
Total 101,571 48,929 67,126
Paid During the Month 70,543 21,874 28,361
Interest 100 - 0 - 0
Purchase Equipment - 0 6,500 - 0
Closing Cash 9,000 30,929 20,554 38,765
Analysis
As given opening cash in hand is 9000 Bhd and the amount received from the sale of the chocolate will be added.payment maid for the purchase of chocolate, Interest and equipment cost will be deducted.

Part III

Note 1: Account Receivable
(In Bhd)
March April May June
Opening Receivable 54,000 17,143 30,000
Sales 25,714 30,857 37,029
Total Receivable 79,714 48,000 67,029
Received during the year 62,571 18,000 26,571
Closing receivables 54,000 17,143 30,000 40,457
Note 2: Inventory
June
Closing Inventory 917
(In Bhd)
March April May June
Opening Inventory - 0 11,714 27,400
Purchases during the Month 18,857 26,400 31,303
Total 18,857 38,114 58,703
Sales 7,143 10,714 12,857
Closing Inventory - 0 11,714 27,400 45,846
Note 3: Building and Equipment
(In Bhd)
March April May June
Opening Building & Equipment 207,000 206,000 211,500
Purchases during the Month - 0 6,500 - 0
Total 207,000 212,500 211,500
Depreciation 1,000 1,000 1,000
Closing Building & Equipment 207,000 206,000 211,500 210,500
Note 4: Account Payable
(In Bhd)
March April May June
Opening Payables 63,000 11,314 15,840
Purchases 18,857 26,400 31,303
Total Payables 81,857 37,714 47,143
Paid during the year 70,543 21,874 28,361
Closing Payables 63,000 11,314 15,840 18,782
Note 5: Notes Payable
(In Bhd)
March April May June
Opening Notes Payables 14,500 30,000 40,560
Borrowings 30,000 10,560 20,000
Total Notes Payables 44,500 40,560 60,560
Paid during the year 14,500 - 0 - 0
Closing Notes Payables 14,500 30,000 40,560 60,560

Part IV

Minden Company
Budgeted Income Statement
(In Bhd)
April May June
Sales 17,143 25,714 30,857
Cost of Sales
Opening Inventory - 0 11,714 27,400
Purchases 18,857 26,400 31,303
Closing Inventory 11,714 27,400 45,846
7,143 10,714 12,857
Gross Profit 10,000 15,000 18,000
Selling & Adminstration Expenses 857.14 1,286 1,543
Depreciation 1,000 1,000 1,000
1,857 2,286 2,543
Net Profit 8,143 12,714 15,457
Minden Company
Projected Retained Earning
(In Bhd)
April May June
Opening Retained Earning 12,500 20,643 33,357
Profit for the month 8,143 12,714 15,457
Total 20,643 33,357 48,814
Divident Paid - 0 - 0 - 0
Closing Retained Earning 20,643 33,357 48,814
Minden Company
Projected Balance Sheet
As at June 30
Assets (In Bhd)
Cash 38,765
Account Receivables 40,457
Inventory 45,846
Buildings and Equipments 210,500
Total Assets 335,567
Liabilities & Equity
Account Payable 18,782
Note Payable 60,560
Common Stock 180,000
Retained Earning 48,814
Total Liabilities & Equity 335,567

Part V

a. Quantity Sold Variance
Budgeted Sales Quantity - Actual Sales Quantity
Budgeted 614
Actual 850
Variance 236
Analysis As actual sales is 850 and budgeted is 614.the variance 236 shows that 236 more units are sold .
b. Celling Price Variance
Budgeted Selling Price - Actual Selling Price
Actual 110
Budgeted 120
(10)
Analysis As actual selling price less than budgeted than 10 is variant.
c. Sales Variance
Budgeted Sales - Actual Sales
Actual
Budgeted
d. ???
e. Quantity Purchase Variance
Budgeted Purchase Quantity - Actual Purchase Quantity
Actual 820
Budgeted 638
182
Analysis: as actual is greater than budgeted
f. Purchase Price Variance
Budgeted Purchase Price - Actual Purchase Price
Actual 55
Budgeted 50
-5
g. Purchase Variance
Budgeted Purchases - Actual Purchases
Actual 55
Budgeted 50
5

Sheet2

a).
PV= FV / (1+ r)^n PV= A/r * [1- 1 /(1+r)^n
PV ? PV ?
FV 1600000 FV 80000
Rate 12% Rate 12%
Years 20 Years 20
(1+r)^n 1- 1/(1+r)^n
1.12 ^ 20 1 - 1/ 1.12 ^ 20
9.65 0.89
PV 165803.10880829 PV 593333.333333333
b).
Yes, It can say that Mr. Ormsby is the millionaire because, their present value is less than their future value. When they invest their money their value is less and after the winning price the amount value is less today and if they received it on every year it will be most valuable for him.