Mid-semester examination (Set B) March 2023 Answer all questions Awo Supermarket is a trusted brand with over 10-year legacy of delivering the best value on quality merchandise for its patrons, through its main shop located at Tema. The supermarket is owned by four siblings who share equity and assets of the business equally among themselves. Since its inception, Awo Supermarket has focused on providing customers with unbeatable prices, which is reinforced through the variety of products available in the shop. During the 2020 Covid 19 pandemic, the shop expanded its activities by opening an online store, and adapting to meet the needs of its customers in Tema and across the country by delivering their orders directly to their doorsteps. . The shop established relationships with some of the world's leading companies like Samsung, Apple, Dell, HP etc. to distribution their products in the country. At the close of the financial year the management perceived they have made some significant gains when they look at their book. The following are excerpts from their books: Total Revenue GHC 72,452,000, Cost of Goods Sold GHc 52,181,000, Net Income GHC 278,000, Total Stockholder Equity GH 438,984,000, Total Assets GH 160,636,000, Interest Expense GH141,000, Accounts Payable 21,821,000 Goodwill GHc2,655,010 Cost of delivery goods to the consumer GHc72,174,000 etc. Prior to Covid 19 the shep employed Manufacturer/distributor storage with customer pickup. Since the pandemic aid opening of the online store and entering into the international relationship, managemen has been researching a better distribution network which will reduce facility cost drastically. In line with the above,(reduction in facility cost) management decided to acceptorders from a community where they can get more than 10 orders in a day. Using the above information answer the following questions 1. What is the cost of the delivering good to the consumer as incurred by Awo supermarket in the year 2020? 2. In percentage term determine the return on equity of the supermarket shares? 3. Calculate the supermarket return on assets using a tax rate of 13% 4. Is the supermarket accounts payable turnover (APT) favourable? 5. With a diagram explain Manufacturer/distributor storage with : 5 marks currently being used by Awo Supermarket . 6. Recommend a distribution network to replace the Manufacturer/distributor storage with customer pickup currently in use by the supermarket that will reduce facility cost. Sketch the recommended distribution network and explain it. Mid-semester examination (Set B) March 2023 Answer all questions Awo Supermarket is a trusted brand with over 10-year legacy of delivering the best value on quality merchandise for its patrons, through its main shop located at Tema. The supermarket is owned by four siblings who share equity and assets of the business equally among themselves. Since its inception, Awo Supermarket has focused on providing customers with unbeatable prices, which is reinforced through the variety of products available in the shop. During the 2020 Covid 19 pandemic, the shop expanded its activities by opening an online store, and adapting to meet the needs of its customers in Tema and across the country by delivering their orders directly to their doorsteps. . The shop established relationships with some of the world's leading companies like Samsung, Apple, Dell, HP etc. to distribution their products in the country. At the close of the financial year the management perceived they have made some significant gains when they look at their book. The following are excerpts from their books: Total Revenue GHC 72,452,000, Cost of Goods Sold GHc 52,181,000, Net Income GHC 278,000, Total Stockholder Equity GH 438,984,000, Total Assets GH 160,636,000, Interest Expense GH141,000, Accounts Payable 21,821,000 Goodwill GHc2,655,010 Cost of delivery goods to the consumer GHc72,174,000 etc. Prior to Covid 19 the shep employed Manufacturer/distributor storage with customer pickup. Since the pandemic aid opening of the online store and entering into the international relationship, managemen has been researching a better distribution network which will reduce facility cost drastically. In line with the above,(reduction in facility cost) management decided to acceptorders from a community where they can get more than 10 orders in a day. Using the above information answer the following questions 1. What is the cost of the delivering good to the consumer as incurred by Awo supermarket in the year 2020? 2. In percentage term determine the return on equity of the supermarket shares? 3. Calculate the supermarket return on assets using a tax rate of 13% 4. Is the supermarket accounts payable turnover (APT) favourable? 5. With a diagram explain Manufacturer/distributor storage with : 5 marks currently being used by Awo Supermarket . 6. Recommend a distribution network to replace the Manufacturer/distributor storage with customer pickup currently in use by the supermarket that will reduce facility cost. Sketch the recommended distribution network and explain it