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Unformatted text preview: R100
253,000 1. 3. Net income 2009
203,000 REQUIRED: 2011
34,000 Cost of goods manufactured
Cost of goods manufactured
Closing inventory Wachovia continued co 1 Prepare the income statements for the New Africa Division for the three
financial years ended 31 March 2009 to 2011 in the alternative format that
Bill Peters was talking about.
It would be easier to work in thousands of rands (R’000). Show all workings.
You are not required to show the detailed inventory movement. Place the
three years side by side in the proper format. 5. 6. 7. Comment on the specifically on the performance of the New Africa Division
based on the income statements prepared in part 2. Why was Bill Peters “gut
feeling” correct that the New Africa Division was overstating profits. (5 Marks) How could a manager or a shareholder detect income increases that are
caused mainly by production for inventory? (2 Marks) Bonus question
Who was the CEO of Sunbeam Inc. in the United States who got caught
increasing production unnecessarily in order to maintain profitability? Question and solution by CCSmith 2013 (1 Mark) 2...
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This document was uploaded on 04/05/2014.
- Spring '14