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BAFS2019_P2A_Eng.pdf - SECTION A (24 marks) Answer ALL...

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2019-DSE-BAFS 2A-22SECTION A(24 marks)AnswerALLquestions in this section.1.Fancy Limited’s financial information for 2018 and 2017 is as follows.2018$Sales (cash sales $11 600)298 200Cost of sales210 700Operating expenses43 600Balances at 31 December2018$2017$Non-current assets, net144 800145 300Inventory153 50086 400Trade receivables95 30058 200Current liabilities125 90070 400Ordinary share capital70 00070 000Retained profits124 80080 9005% long-term bank loan95 00095 000Cash at bank22 10026 400REQUIRED:(a)Calculate (to two decimal places) the following ratios for 2018:(i)inventory turnover (in times)(ii)trade receivables turnover (in times)(iii)total assets turnover (in times)(iv)gearing ratio(Total: 8 marks)
2019-DSE-BAFS 2A-332.Joey Company’s bank statement showed a credit balance of $300 000 as at 31 December 2018, which didnot agree with the balance shown in the cash at bank account on that date. The following were subsequentlydiscovered:(i)Interest income of $2 400 had been credited by the bank but no entries had been made in the books.(ii)The cash at bank account included a debit entry of a posted-dated cheque from a credit customer for$3 900.(iii)A cheque for $6 300, received from a customer, was shown in the debit column of the bankstatement and marked as a ‘Returned Cheque’.(iv)An incorrect credit transfer of $5 200 had been made by the bank on 30 December 2018. JoeyCompany was informed by the bank that an adjustment would be made in January 2019.(v)A cheque payment of $48 000 to a supplier had been recorded as a refund from the supplier in thebooks.(vi)On 31 December 2018, unpresented cheques totalled $61 700 while the deposits made but not yetcredited by the bank amounted to $23 100.REQUIRED:(a)Update the cash at bank account and prepare a bank reconciliation statement as at 31December 2018.(6 marks)(b)Give two reasons why a cheque already deposited would be returned by the bank.(2 marks)(Total: 8 marks)
2019-DSE-BAFS 2A-443.Dragon Limited manufactures three products: A, B and C. The products’ financial information is as follows:ProductABC$/unit$/unit$/unitSelling price365390225Production costsDirect materials80.595.045.5Direct labour60.561.040.0Variable manufacturing overheads24.024.520.5Fixed manufacturing overheads55.088.033.0Variable selling and administrative expenses21.521.521.5Dragon Limited has a maximum of 20 000 machine hours available each year. The total fixed manufacturingoverheads are $440 000 per year, which are absorbed on the basis of machine hours.REQUIRED:(a)Calculate the contribution margin per unit for products A, B and C respectively.(2 marks)(b)Calculate the number of machine hours required to produce each unit of Products A, B andC respectively.(c)Suppose the projected demand for products A, B and C in the following year is 4 500 units,(2 marks)2 500 units and 4 300 units respectively. State the production quantity of each product in

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Term
Spring
Professor
N/A
Tags
Depreciation, Expense, Mr Lee

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