1 From the following selected ending ledger balance extracted from the ledger book of Merco Pty Ltd. during October 2020, prepare the following financial statements: a) Income Statement; and by Balance Sheet Account Title Ending ledger balance in AUDS Bank 45,500 Books & Stationeries 1.500 Prepaid Insurance 6,000 Land 135,000 Buildings 65,000 Equipment 10,500 Service Revenue 175,500 Interest Income 3.500 Salaries Expense 35,500 Rent Expense 12,500 Administrative Expense 18,500 Interest Expense 2.500 Expense 5000 Advertising Expense 13,000 Accounts Payable 6.500 Salaries Payable 5,500 Tax Payable 17.500 Mortgage Payable 54,500 Owner's Equity 118,000 Drawings 22,500 Q. 2 Selected information below is provided of two different companies competing in retail clothing industries: Kmart (S) Big W (S) Sales revenue 1000000 500000 Cost of sales (410 000) (220000) Gross Profit 590.000 280.000 Less: Expenses (200 000) (150000) Profit 390 000 130000 Total assets 490 000 475 000 Required With the help of Return on Asset, Profit Margin and Asset turnover ratio compare the profitability of both the companies. Provide calculations to support your answers. Q3 Bundoora Enterprises operates a single-product entity. Data relating to the product for 2020 were as follows: Annual Volume 20,000 Units Selling price per unit 540 Variable manufacturing cost per unit $15 Annual fixed manufacturing costs $220,000 Variable marketing and distribution costs per unit SS Annual fixed non-manufacturing costs $120,000 a) Calculate total fixed costs and total variable costs per unit. b) Calculate Profit Volume Ratio and break-even units for 2020. Q4 Answer the following questions a) The following data is available for Bellie Enterprises, Actual Estimated April May June July August Credit sales $100,000 $125,000 $110,000 $220,000 $385,000 Credit sales are normally settled according to the following pattern: 60% in the month following sales, and 35 per cent in the second month following the sale. 5% of accounts are never settled. calculate the receipts from accounts receivable for June, July and August of 2018? by Bikon Furniture Ltd, an office furniture retailer and wholesaler, carries a particular brand of office chair. During the year ended 30 June, the following purchases occurred: August October 50 chairs@45 December March 60 chairs @54 55 chairs@ 60 60 chairs @58 As of 1 July, Bikon furniture Ltd had 18 chairs in inventory, costed $44 per unit. As at 30 June an inventory count revealed 21 chairs in inventory. Compare the value of the office chairs on hand as of 30 June to be included in the inventory balance on the balance sheet under the FIFO inventory method. Required: Calculate value of inventory as of 31 March 2015 under FIFO method of inventory valuation