Please be as detailed as possible, it is a crucial assignment Quest ionone: A company has
Question:
Please be as detailed as possible, it is a crucial assignment
Quest ionone:
A company has the following proforma a cost sheet data:
Cost (per unit) K
- Raw Materials - 25.0
- Direct Labor - 19.5
- Overheads - 39.0
- Total Cost/Unit 83.5
Profit 19.5
Selling Price64.0
Additional Information:
Average raw materials in stock: One Month
Average materials in process :Half a Month
Credit allowed by suppliers :One Month
Credit allowed to debtors: Two-Months
Time lag IN payment of wages: One and Half Weeks
Overheads: One month.
One-Fourth of sales arson cash basis
Cashbalanceisexpectedtobe:K120,000
Required:
Prepareastatementshowingtheworkingcapitalneededtofinancealevelofactivityof 70,000unitsof output.
Assumethatproductioniscarriedoutevenlyandthroughouttheyearandoverheads and wages accrue similarly. (20 marks)
Question Two:
IdentifyandexplainwhatareconsideredassignificantrolesofaChiefFinancialOfficer and explain the main characteristics of this position. (20 marks)
Question Three:
- When preparing a statement of Cash flow ,transactions such a depreciation expense, amortization of debentures discount and similar internal items are neither sources nor applications of financial resources, yet they are treated as adjustments to net profit .Explain why thesis so. (5 marks)
- Explain and identify the features of preference shares (10 5arks)
Identify the merits and demerits of preference shares (5 marks)
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso