$same company picture 1&2

3. Super Kitchen Limited uses five grams of PVC are need for each lunch box bag. The cost of PVC is $4.5 per gram. Budgeted production of the lunch box bags is given below by quarters for Year 2 and for the first quarter of Year 3:

Year 2 Year 3

First Second Third Fourth First

Budgeted production in bags 80,000 120,000 140,000 160,000 150,000

PVC is a usual raw material and it is better to stock up some inventories as a safety against stock- outs. So, inventory of PVC at the end of a quarter must be equal to 20% of the following quarters production needs. Certain 110,000 grams of PVC will be on hand to start the first quarter of Year 2.

Required:

1. Prepare a full direct materials budget for PVC by quarters and in total, (10 marks) for Year 2 with 9 rows up to Cost of raw materials to be purchased.
2. Discuss the importance of budgeting in an organization. (8 marks)

Don't worry about the other languages. It is just translations for all the English words. Thank you

LIMITED LUK FOOK HOLDINGS (INTERNATIONAL) CONSOLIDATED BALANCE SHEET As at 31 March 331 2020 Note HK$'000 2019 HK$'000 841,004 16 17 18 951,782 483,131 311,716 ASSETS Non-current assets Property, plant and equipment Land use rights Investment properties Right-of-use assets Interests in associates Loan to an associate Financial assets at fair value through other comprehensive income Trading licence Non-current deposits and prepayments Deferred income tax assets 791,617 919,706 60,689 19 20 21 13,279 99,208 23 2,365 1,080 3,134 1,080 24 156,284 71,839 105, 101 54,643 31 2,844,584 2,023,074 25 7,533,146 93,383 231,309 9,321,522 85,897 362,675 26 Current assets Inventories Right of return assets Trade receivables Deposits, prepayments and other receivables Amount due from an associate Derivative financial instruments Income tax recoverable Cash and cash equivalents 24 20 22 447,443 1,372 474,014 3,078 56,219 10,571 2,086,522 12,400,498 59,578 2,714,233 11,080,464 27 Total assets 13,925,048 14,423,572 EQUITY Capital and reserves attributable to the equity holders of the Company Share capital Share premium Reserves 29(a) 29(b) 30 58,710 2,494,040 7,818,955 10,371,705 40,406 10,412,111 58,710 2,494,040 7,964,520 10,517,270 45,646 Non-controlling interests Total equity 10,562,916 As at 31 March 331 2020 2019 HK$"000 HK$"000 Note LIABILITIES Non-current liabilities Deferred income tax liabilities Lease liabilities Employee benefit obligations 133,690 31 19 283,661 9,618 32 10,823 440,116 144,513 28 975,840 122,502 3,929 Current liabilities Trade payables, other payables and accruals Contract liabilities Derivative financial instrument Lease liabilities Sales refund liabilities Amount due to an associate Bank borrowings Gold loans Current income tax liabilities 22 19 707,861 97,692 22 469,394 173,221 20 1,126,072 386,739 111,800 3,072,821 20 33 34 155,768 2,715 1,855,224 450,889 149,276 3,716,143 Total liabilities 3,512,937 3,860,656 Total equity and liabilities 13,925,048 14,423,572 Chow Tai Fook Jewellery Group Limited CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 March 2020 2020331 Notes 2020 HK$ million 2019 HK$ million Revenue Cost of goods sold 56,750.8 (40,654.6) 66,660.9 (48,059.1) Gross profit Other income 16,096.2 436.6 18,601.8 395.8 5 Selling and distribution costs General and administrative expenses Other gains and losses Other expenses Share of profits of an associate Interest income Finance costs 6 (9,037.8) (2,986.7) (276.2) (57.3) (8,689.7) (2,867.1) (147.1) (146.3) 3.5 78.0 (559.6) 5 7 82.7 7 (370.3) 8 6,352.0 Profit before taxation Taxation 4,204.5 (1,221.4) 10 (1,668.0) Profit for the year 2,983.1 4,684.0 Other comprehensive expense Item that will not be reclassified to profit or loss: - remeasurement of defined benefit scheme : (24.0) (7.5) Item that may be reclassified subsequently to profit or loss: - exchange differences arising on translation of foreign operations : - (980.6) (1,288.1) Other comprehensive expense for the year (1,004.6) (1,295.6) Total comprehensive income for the year 1,978.5 3,388.4 Profit for the year attributable to: Shareholders of the Company Non-controlling interests : 2,901.0 82.1 4,576.8 107.2 2,983.1 4,684.0 Total comprehensive income for the year attributable to: Shareholders of the Company Non-controlling interests : 1,937.2 41.3 3,327.3 61.1 1,978.5 3,388.4 Earnings per share - Basic and Diluted - 11 HK29.0 cent HK45.8 cents Chow Tai Fook Jewellery Group Limited CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 March 2020 2020331 Notes 2020 HK$ million 2019 HK$ million 4,641.3 5,488.0 177.2 Non-current assets Property, plant and equipment Land use rights Right-of-use assets Investment properties Goodwill Other intangible assets Jewellery collectibles Prepayment and deposits Financial assets at fair value through profit or loss Investments in associates Amounts due from associates Loan receivables Deferred tax assets , 13 2.2 14 15 16 17 18 2,288.0 225.4 231.5 207.6 1,520.1 248.3 219.2 257.8 253.7 1,520.1 38.7 11.2 21.0 11.7 57.5 15.6 570.1 19 19 20 21 54.7 18.7 420.1 10,038.1 8,459.4 22 23 Current assets Inventories Trade and other receivables Loan receivables Taxation recoverable Cash and cash equivalents 42,538.4 5,340.8 7.9 99.0 7,219.2 39,486.1 6,638.7 12.3 20 24 7,640.6 55,205.3 53,777.7 25 12,430.0 10,684.3 26 Current liabilities Trade and other payables Amounts due to non-controlling shareholders of subsidiaries Taxation payable Bank borrowings Gold loans Lease liabilities 27 97.9 388.6 10,533.0 11,280.4 896.8 136.7 1,178.4 7,460.0 8,011.5 28 14 35,626.7 27,470.9 Net current assets 19,578.6 26,306.8 Total assets less current liabilities 29,616.7 34,766.2 27 2,596.7 14 Non-current liabilities Bank borrowings Lease liabilities Retirement benefit obligations Deferred tax liabilities Other liabilities 897.5 900.3 260.2 505.1 62.8 36 21 238.8 456.4 71.3 2,625.9 3,363.2 Net assets 26,990.8 31,403.0 Equity attributable to shareholders of the Company Non-controlling interests 26,343.3 647.5 30,750.7 652.3 26,990.8 31,403.0