Baby Star_S40069024_Financial Reporting_Assessment 2.docx -...

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ASSESSMENT 2 Course Name Certificate IV Leadership and Management Subject/module Financial Reporting Assessment method Written Assessment Weighting 50% Units of Competency BSBFIA412 Report on Financial Activity Instructions 1. Assessments should be completed as per your trainer’s instructions. 2. Assessments must be submitted by the due date to avoid a late submission penalty. 3. Plagiarism is copying someone else’s work and submitting it as your own. You must write your answers in your own words and include a reference list. A mark of zero will be given for any assessment or part of an assessment that has been plagiarised. 4. You may discuss your assessments with other students, but submitting identical answers to other students will result in a failing grade. Your answers must be yours alone. 5. Your trainer will advise whether the assessment should be digitally uploaded or submitted in hard copy. Assessments that are digitally uploaded should be saved in pdf format. 6. You must attempt all questions. 7. You must pass all assessments in order to pass the subject. 8. All assessments are to be completed in accordance with WHS regulatory requirements. 1 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB42015 CERTIFICATE IV IN LEADERSHIP AND MANAGEMENT | FINANCIAL REPORTING_V7.2
Part A: Written Assessment Question 1 (16 marks) The following summarised accounting data was extracted from the accounting reports of P Senior at 30 June 2019. P SENIOR 201 8 201 9 Current Assets $ $ $ $ Inventory 400 800 Accounts Receivable 500 900 400 1,200 Non Current Assets 1,900 2,000 Total Assets 2,800 3,200 Current Liabilities Bank Overdraft 400 400 Accounts Payable 200 600 200 600 Non Current Liabilities 1,200 1,400 Total Liabilities 1,800 2,000 Owner's Equity Capital 800 1,000 Net Profit 400 300 Drawings (200) 1,000 (100) 1,200 PROFIT AND LOSS Sales 2,100 2,000 Cost of Goods Sold Inventory 1/7 300 400 1,300 1,600 Inventory 30/6 (400) (1,200) (800) (1,200) Gross Profit 900 800 Operating Expenses (500) (500) Net Profit 400 300
For 2018 and 2019 calculate the following ratios: 1. Current Ratio 2. Liquid Ratio 3. Equity Ratio 4. Return on Owner’s Equity 5. Gross Profit Rate 6. Inventory Turnover 7. Accounts Receivable Collection (in days ) Assume that all sales were on credit 8. Net Profit Rate Use the answer sheet below. Rati o Formulas 2018 2019 Current ratio Current asset Current liability 2 1,5 Liquid ratio CA+ Accounts receivable Current liabilities 0,667 0,83 Equity ratio Total equity Total assets 0,375 0,357 Return on owners’ equity Net Income Shareholder’s equity 25% 40% Gross profit gross profit Net sales 40% 42,9% Inventory turnover cost of goods sold Average inventory 6 times 24 times Accounts receivable connection Number of working days Debtor turnover ratio 87 days 73 days Net profit Net profit Net sale 19,05% 15%

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