TOPIC

RQ

CANDIDATE CODE

MONTH AND YEAR

WORD COUNT

TABLE OF CONTENT ( SECOND PAGE)

INTRODUCTION ( THIRD PAGE)

ADD INFORMATION IN THE FOOTNOTES

Capital employed= Total assets- Current liability

Capital employed = Shareholders' funds + long-term liabilities

                              = ( Total assets- Total liabilities ) + long term liabilities

=  ( CA+ FA-CL-NCL)+ NCL

= (CA+FA)-CL

= Total assets- Current liability

Shareholder's fund= Capital employed - long -term liability

Shareholders fund ( Net asset) = Total assets- Total Liabilities

Shareholder’s funds(Owner’s equity)= Share capital + Reserves+ Profit and loss account.

P*Q

P- PRICE

Q- NO, OF UNITS SOLD/ NO. OF QUANTITY SOLD

COST OF GOODS SOLD REFERS TO VARIABLE COST/ direct cost= opening stock + purchases- closing stock

1. SALES REVENUE - COST OF GOODS SOLD (VC)= GROSS PROFIT

2. Gross profit- Overhead expenses(FC)= Net profit before interest and tax(NBIT)also known as Net profit

3. Net profit before interest and tax - interest - tax= Net profit after interest and tax

4. Net profit after interest and tax- Dividends = Retained profits

Purchase cost= 100000

Life span is 5 year

Depreciation rate : 30%

calculate residual value of the asset after 5 years:

Ans:

Year 0: Depreciation = 0

Book value= 1,00,000

Year 1: Depreciation cost: 100000* 30/100

= 30000

Book value= BOOK VALUE OF YEAR 0- depreciation

= 1,00,000- 30000

= 70000

Year 2: DC: 70000*30/100= 21000

BOOK VALUE= BOOK VALUE OF YEAR 1 t- depreciation

= 70000-21000

= 49000

Year 3: DC= 49000*30/100= 14700

book value= BOOK VALUE OF YEAR 2 - depreciation

= 49000- 14700

=34300

year 4: DC= 34300*30/100= 10290

BOOK VALUE= BOOK VALUE OF YAER 3- DEP

= 34300-10290= 24010

YEAR 5: DC= 24010*30/100= 7203

BOOK VALUE= BOOK VALUE OF YEAR 4- DEPRECIATION

= 24010- 7203= 16807

1. Straight-Line Method:

Depreciation per year = (Cost - Residual Value) / Useful Life

Depreciation per year = ($20,000 - $3,000) / 5 years

Depreciation per year = $17,000 / 5 years

Depreciation per year = $3,400

2. Reducing Balance Method:

The depreciation rate is given as 25%. So, each year, the machine's book value will decrease by 25% of its remaining book value.

Year 1:

Depreciation = 25% * $20,000 = $5,000

Book value at the end of Year 1 = $20,000 - $5,000 = $15,000

Year 2:

Depreciation = 25% * $15,000 = $3,750

Book value at the end of Year 2 = $15,000 - $3,750 = $11,250

Year 3:

Depreciation = 25% * $11,250 = $2,812.50

Book value at the end of Year 3 = $11,250 - $2,812.50 = $8,437.50

Year 4:

Depreciation = 25% * $8,437.50 = $2,109.38

Book value at the end of Year 4 = $8,437.50 - $2,109.38 = $6,328.12

Year 5:

Depreciation = 25% * $6,328.12 = $1,582.03

Book value at the end of Year 5 = $6,328.12 - $1,582.03 = $4,746.09

Now, let's compare the results:

Straight-Line Method:

Depreciation per year = $3,400

Reducing Balance Method (Total depreciation over 5 years):

Year 1: $5,000

Year 2: $3,750

Year 3: $2,812.50

Year 4: $2,109.38

Year 5: $1,582.03

So, under the straight-line method, the depreciation each year is $3,400, while under the reducing balance method, the total depreciation over 5 years is approximately

$4746

PROFIT AND LOSS ACCOUNT KNOWN AS

income statement

STATEMENT OF THE FINANCIAL POSITION= balance sheet

PROFIT= net profit/ Operating profit

COGS= cost of goods sold/ Variable cost/ direct cost

FC= fixed costs / overhead expenses/ overhead cost/ indirect cost

REVENUE = Total revenue/ sale revenue= P*Q

COGS=

O.S+P-C.S= 10000+35000- 12000= 33000

GP= 140000-33000= 107000

GP- OVERHEAD EXPENSES=

107000- 17000

NET PROFIT BEFORE INTEREST AND TAX = 90000

LESS INTEREST= 50000

NPBT= 85000

LESS TAX= 85000*15/100( 12750)

NPafter interest and tax= 72250

B)

SR= 135000

GP= 101000

COGS= 34000/101000*100

COGS= 33.6 (34%)

SR= 100-34= 66%

IF COGS IS NOT GIVEN IN THE QUESTION

GPM= GP/SR *100

= 101000/ 135000*100= 74.8%

SR= 135000

NP= 70200

NPM= NP/SR*100

= 70200/ 135000*100

= 52%

- Task A: 3 weeks

- Task B: 4 weeks

- Task C: 3 weeks

- Task D: 6 weeks

- Task E: 2 weeks

- Task F: 1 week

- Task G: 4 weeks

- Task H: 2 weeks

- Task I: 3 weeks

Adding these durations together gives us a total of 28 weeks, but remember that Task E can start after either Task C or Task D, not simultaneously. Thus, we take the longest path, which includes Task D. Hence, the total duration is 18 weeks.

For part (c), since the relocation is expected to take 18 weeks and the project starts on 1st August, if we add 18 weeks to that start date, we get 1st December. So, yes, the head office relocation will indeed be complete by 1st December. Actually, it will be completed earlier, by mid-November, as there are no tasks scheduled beyond the 18th week.