代写BUSINESS 114 Accounting for Decision Making SEMESTER ONE 2023帮做R语言
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Accounting for Decision Making
SEMESTER ONE 2023
QUESTION 1 – Balance Sheet, Income Statement, and Financial Statement Analysis
Greenleaf Landscaping, a landscaping and garden maintenance company, has recently completed operations for the month of May 2023. The balance sheet at the end of April 2023 is shown below.
Greenleaf Landscaping – Balance Sheet as at 30 April 2023
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Assets |
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Liabilities & Owner’s Equity |
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Current Assets: |
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Current Liabilities: |
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Cash |
$37,800 |
Accounts Payable |
$7,500 |
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Accounts Receivable |
$15,500 |
Non-Current Liabilities: |
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Gardening Supplies |
$25,600 |
Bank Loan (6.99% p.a.) |
$38,400 |
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Non-Current Assets: |
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Owner’s Equity: |
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Equipment |
$47,000 $125,900 |
Capital |
$80,000 $125,900 |
The following information is for some of the transactions that took place during the month of May 2023:
1. During the month, Greenleaf Landscaping delivered landscaping and garden maintenance services to its clients. The company has sent the invoices for the services rendered in May to the customers and the payments will be collected in future months. The company generated revenue of $48,000 for services rendered during May.
2 The amount of gardening supplies used for the garden maintenance service for Greenleaf Landscaping in May 2023 amounted to $36,000.
3 Greenleaf Landscaping purchased a new lawn mower for the purchase price of $5,000. The company paid $1,000 in cash and signed a note agreeing to pay the remaining amount of $4,000 at the end of the year.
4 Greenleaf Landscaping has a bank loan with an interest rate of 6.99% per annum. Interest is paid monthly, and the interest expense for the month of May must be accounted for and paid.
5 The business collected 90% of the accounts receivable outstanding from April in cash from customers.
Required:
(a) For each transaction provided above, analyse the impact on the financial statements by providing the following information:
• Name of the account impacted by the transaction – select the appropriate account name from the drop-down menu: various account names.
• The change in the account - use the drop-down menu to indicate whether there is an increase, decrease, or no impact on the account.
• The type of account – select one of the following from the drop-down menu: Non-Current Asset, Non-Current Liability, Current Asset, Current Liability, Revenue, or Expense.
• The specific financial statement affected by the transaction – select one of the following from the drop-down menu: Income Statement or Balance Sheet.
• The monetary amount involved in each transaction - type in the amount for the transaction.
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Account Name |
Increase; Decrease; No impact |
Type of Account |
Financial Statement |
Amount |
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(11 marks)
(b) What is the balance of the Capital account after the above five transactions? Show all workings. (2 marks)
(c) What is the balance of the Accounts Receivable account after the above five transactions? Show all workings. (1 mark)
(d) After the accountant put through all the transactions for the month, the following ratios for Greenleaf Landscaping and for the industry sector Greenleaf Landscaping operates in were calculated:
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Ratio |
Greenleaf Landscaping |
Industry |
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Net Profit Margin |
2.67% |
5% |
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Interest Coverage Ratio |
3 times |
6 times |
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Current Ratio |
1.5 times |
2 times |
Considering the provided financial ratios, analyse Greenleaf Landscaping’s profitability, and financial risk in relation to its industry peers. (2 marks – 90 words maximum)
(e) Taking into account the current economic environment in New Zealand, discuss how factors such as interest rates and inflation may impact the company’s performance and financial health.
Note: Ensure that your answer relates to the scenario and is not too general. (2 marks – 90 words maximum) (Total for Question 1: 18 marks)
QUESTION 2 – Cost Understanding
Wanda has recently been hired as the marketing manager by Vision Ltd. Wanda proposes that Vision Ltd should launch a major new promotion in June with a limited time offer. The promotion offers a free movie ticket for each unit of Vision Ltd’s products sold. Vision Ltd’s budgeted income statement for June, based on sales of 6,000 units without introducing the new promotion, was as follows:
Units 6,000
Sales revenue $480,000
Less: Variable costs $336,000
Less: Fixed costs $105,000
Profit $39,000
Wanda has conducted some market research and concluded that the new promotion would increase sales to 10,000 units per month with the same unit selling price. The additional fixed costs for this promotion would be $2,800 and amovie ticket would cost $9.
Required:
(a) Calculate the breakeven point in sales revenue and the margin of safety as a percentage based on Vision Ltd’s budgeted income statement for June without the new promotion (round your answer to two decimal places if required). (3 marks)
(b) Explain briefly why the company might find it useful to know its breakeven point and margin of safety. (2 marks – 90 words maximum)
(c) (i) What would the breakeven point in sales revenue and profit be if Vision Ltd implements the promotion suggested by Wanda? (3 marks)
(ii) How many units would Vision Ltd need to sell to achieve June’s budgeted profit of $39,000 if Vision Ltd implements the promotion? (Round your answer up to the nearest unit). (1 mark)
(iii) Comment on Wanda’s marketing proposal, considering the expected impact on profits and the breakeven point. State any assumptions you need to make. (3 marks – 140 words maximum)
(d) (i) Calculate the operating leverage for June before and after the promotion (round to two decimal places). (2 marks)
(ii) Discuss the reason that causes the change of the operating leverage as well as the relationship between operating leverage and Vision Ltd’s operating risk according to the calculation in (d)(i). State any assumptions you need to make. (2 marks – 90 words maximum) (Total for Question 2: 16 marks)
QUESTION 3 – Performance Measurement
Innovative Tech Solutions produces a popular tech gadget called SmartLink. The business normally budgets to produce 11,000 SmartLink units per month.
The company has the following budgeted costs to produce one SmartLink unit:
• Direct materials: 3 components at $15.00 per component
• Direct labour: 1.5 hours at $20.00 per hour
• Variable manufacturing overhead: 1.5 hours at $10.00 per hour
• Fixed manufacturing overhead: $123,200
During the month of April, the company’s actual production for SmartLink was 10,000 units. The actual costs and usage for this month were:
• Direct materials: 30,500 components were used, costing $460,000
• Direct labour: 15,200 hours were worked, costing $304,000
• Variable manufacturing overhead: $152,000 was incurred
• Fixed manufacturing overhead: $116,400 was incurred
Note: Show all calculations and provide explanations for your interpretations and recommendations.
Required:
(a) What is the budgeted cost of producing one SmartLink unit? (3 marks)
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Cost ($) |
Workings |
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Direct materials |
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Direct labour |
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Variable manufacturing overhead |
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Fixed manufacturing overhead |
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Total budgeted cost for one unit |
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(b) What were the total actual costs of producing SmartLinks in April? (1 mark)
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Cost ($) |
Workings |
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Direct materials |
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Direct labour |
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Variable manufacturing overhead |
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Fixed manufacturing overhead |
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Total actual costs |
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(c) Calculate the total flexed budget cost for the SmartLink units in April. (3 marks)
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Cost ($) |
Workings |
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Direct materials |
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Direct labour |
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Variable manufacturing overhead |
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Fixed manufacturing overhead |
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Total flexed budget costs |
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(d) Calculate the flexed budget variances for the following and indicate whether it is Favourable (F) or Adverse (A):
(i) Direct materials flexed variance;
(ii) Direct labour flexed variance;
(iii) Variable manufacturing overhead flexed variance;
(iv) Fixed manufacturing overhead flexed variance;
(v) Total flexed budget variance. (3 marks)
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Flexed Budget Variance ($) |
Favourable (F) or Adverse (A) |
Workings |
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Direct materials |
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Direct labour |
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Variable manufacturing overhead |
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Fixed manufacturing overhead |
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Total flexed budget variance |
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(e) Interpret the variances calculated in (d). What do these variances indicate regarding the costs of production during the month of April? What are the implications of this situation? Briefly discuss one possible ethical issue that may arise in this situation (4 marks – 180 words maximum)
(f) Based on your analysis of the company’s variances and using your knowledge of the balanced scorecard, what are the two most likely perspectives management would be using in this situation? Explain your reasoning and suggest possible goals for the organisation. (2 marks – 90 words maximum) (Total for Question 3: 16 marks)