Listed below, in random order, all the items included in Sing and Ling Ltd's balance sheet at December 31 2022.

Plant and equipment	$266,500
Cash	$43,420
Account Receivable	?
Account payable	$62,764
Accrued expense payable	$24,479
Inventory	$133,445
Investments (long-term)	$139,100
Bonds payable	?
Contributed equity	$400,322
Accumulated depreciation	$52,000

Total liabilities on December 31, 2022, are $ 178,243

Required:

Preparation of a balance sheet for Sing and Ling Ltd on December 31 2022. Insert the correct amount for "Bond Payable" and for "Account Receivable." (20 marks)

2.Liu & Hang Company has furnished the following information:

Forecast sales for 1st month	$450,000
Forecast sales for 2nd month	300,000
Cash sales = 15% of total sales
Collection schedule of the sales on credit:
In month sold	60%
In next month	40%

Required:

Prepare an expected cash collections schedule for the first and second months. (15 marks)

Answer text

 

Expected cash collections:	1stmonth	2ndmonth	Total
From Cash sales
From 1st-monthcredit sales
From 2nd-monthcredit sales
Total cash collection

3 .Blue Ocean Company sells high-quality T-shirts. The business's profit calculation for last year is shown here:

Sales revenue (3000 units @ $15)	$45,000
Less: Variable costs	(21,000)
Contribution margin	$24,000
Less: Fixed Costs	(18,000)
Profit	$6,000

To increase its market share Blue Ocean decided to reduce the selling price by $1.5 and, at the same time, found a cheaper supplier to reduce the variable cost by $2 per t-shirt. After those changes are made, they expect to sell 3300 t-shirts next year.

Required:

1. Using the above income statement format, show the calculation of expected profit/loss for Blue Ocean's operation next year. (20 marks)
2. What is the Blue Ocean's break-even point in a number of t-shirts for the coming year? (10 marks)
3. Provide your recommendation with an explanation. (10 marks)

4...Nikola Subotic and his brothers opened Niky's Dry Cleaning Pty Ltd on September 1 2019. During the first month of operations, the following transactions occurred:

Sept. 1 The business issued shares, and shareholders invested $20 000 cash in the business.

2 Paid $1000 cash for shop rent for the month of September.

3 Purchased industrial dry-cleaning equipment for $25 000, paying $10 000 in cash and $15 000 on credit.

4 Paid $1200 for a 1-year accident insurance policy.

10 Received a bill from the Daily Telegraph for advertising the opening of the cleaning service, $200.

15 Performed services on account for $6200.

20 Paid a $700 cash dividend to shareholders.

30 Received $5000 from customers invoiced on September 15.

Requirement:

Record each transaction in the appropriate columns of your worksheet for the first month of operation of Niky's Dry Cleaning Pty Ltd. (25 marks)