Calculation criteria: 1 A profit rate on sales Revenue 2 The profit rate on equity ROE Owners' equity 3 The current rate of payment CA / CL Total liabilities 4 quick payment rate Total
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Test all subjects: Financial Accounting
Student: Ngo Trung Quan
Date of birth: 02 – 11 - 1979
Class : GaMBA X0110
1 Calculation criteria:
1 A profit rate on sales
Revenue
2 The profit rate on equity (ROE)
Owners' equity
3 The current rate of payment (CA / CL)
Total liabilities
4 quick payment rate
Total liabilities
5 The ratio of total equity on total assets
Total equity
Total assets
6 Score Revolving inventory
Cost of sales
The average cost of inventory The average cost of inventory
Cost of inventory beginning inventory + Cost
2
2 The report describes profitability and financial condition of the Company Cathy's Kitchen
TABLE balance
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In N and N +1
I Cash and cash equivalents 38,000 40,000
III Short-term accounts receivable 36,000 59,000
V Other Assets
I Long-term receivables
II Fixed assets
III Real Estate Investment beans
IV Investments in long-term financial
V Other long-term assets
COMMUNITY TOTAL ASSETS 153,000 210,000
1 Short-term loans and liabilities
2 The seller must pay 27,000 29,000
3 Buyers of prepaid
4 Taxes and other amounts payable to the
State
1 Capital investment of the owner
2 Surplus capital stock
4 Profit after tax undistributed -
II Funds and other funds - -
COMMUNITY FUNDING TOTAL 153,000 130,000
a Profitability:
Revenue
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Profit before tax
Total assets
b Financial Status:
ANALYSIS BY SOME DAY TIME
Year: N and N +1
3 Gross profit from sales and services 100% 106%
6 Profit after tax corporate income
On balance, the data reflect not enough (total assets with total funding gap year 80,000 N + 1)
In year N +1 and N:
- Revenues increased 25%
- Cost of goods sold increased 41%
- Gross profit increased 6%
- Other expenses increased 27%
- Profit fell 16%
Lesson 2:
- The production method of inventory cost per unit on average we have:
Total value of inventory is 6.5 million
Cost of goods sold is $ 6.5 million - 1.4 million = 5.1 million
Profit before tax = $ 8 million - 5.1 million = 2.9 million
CIT = 2.9 million * 30% = 0.87 million
Profit after tax = 2.9 million - 0.87 million = $ 2.03
Profit rate on sales = 2.03 / 8 = 25.375%
- The first production method Ago (FIFO) we have:
Total value of inventory is 6.5 million
Cost of goods sold is $ 6.5 million - $ 1 million = 5.5 million
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Profit before tax = $ 8 million - 5.5 million = 2.5 million
CIT = $ 2.5 million * 30% = 0.75 million
Profit after tax = $ 2.5 million - 0.75 million = 1.75 million
Profit rate on sales = 1.75 / 8 = 21.875%
I will select the method the average unit price
2 The influence that the method of inventory caused the company's stock price in perfect capital markets:
According to common practice in enterprises by selected FIFO method:
- This method helps us to immediately calculate the value of goods each shipment of inventory to ensure timely supply data
- The value of capital stock is relatively close to market price, so the target inventory accounting reports more meaningful reality
3 Suppose there exists a perfect market, the inventory method will have certain influence to the company's stock price as follows:
- When prices rise (in times of inflation), FIFO method often leads to
higher profits in the third FIFO method, LIFO and average But when
prices fell for the FIFO method is the lowest profit in three methods of calculation During the period of price increases, FIFO method would result
in higher taxes than any method during the period of price declines, the FIFO to help businesses reduce the tax burden The major advantage of this method is FIFO is not subject to the provisions and requirements of the terms binding methods such as LIFO tax take Accordingly, during the period of price increases (inflation) by the value of capital stock is
relatively close to the market price of the stock price should not be affected
by inflation, so when prices will rise to increase company profits and thus stock prices will rise And vice versa
4 Advantages and disadvantages of policies to encourage sales of the
company as a% bonus profit after tax:
- Advantages: Where do the company effective (after-tax profits high), they
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the after-tax profits of the Company The staff and workers are important resources to create efficiency in production and business operations of the company
- Difficulties: In case of negative profit after tax (officials and employees not reward), this would have adverse effects to the spirit of their work later, leading to reduced productivity and little to no impact on business
operations of the company