1. Deals Limited sells high quality computer accessories. The following budgeted information has been made available; Months January February March
Keyboard Sales 400 units 600 units 450 units
Speaker sales 700 units 200 units 300 units
The accessories are purchased from an external supplier at $20 per keyboard and $36 per speaker. Deals limited usually plans ahead of the expected sales, by ensuring that closing inventory of the current month is maintained at half the inventory of expected sales for the following month.
A spreadsheet has been prepared for the purchasing budget for the month of February.
Expected Keyboard Sales
Opening Inventory of Keyboards
Purchases of Keyboards
Closing Inventory of Keyboards
A. Calculate the figure that should be in cell B2
B. Calculate the figure that should be in cell B3
C. Calculate the figure that should be in cell B5
D. What is the formula that needs to be entered into cell B4
E. Which of the following statements is correct?
F. Which of the following will not be included in a Cash budget?
2. Huang PLC sells imported rice. The following information is available;2015 January February March
Total Sales $400,000 $390,000 $420,000
Total Sales consists of cash and credit sales. 10% of sales are made in cash, whilst 70% of sales are paid in the following month and 95% of the remainder is settled in 2 months. The remaining 5% is treated as irrecoverable debts.
A. Calculate the amount of cash to be received in February.
B. Calculate the amount of cash to be received in March.
C. If an index for sales was used on a monthly basis, with 2013 January = 100, and 2015 January being 133, what will be the index figure for February?
D. Huang’s Marketing team has noticed that customers tend to purchase new products from multiple rice brands and devised a strategy to change its packaging design once in every 12 months. The development of a new packaging starts 3 months prior to its introduction. So based on the product life cycle, the last 3 months before a new packaging is introduced is known as what stage?
E. If a discount of 2% is offered, it has been noted that cash sales within the month will rise to 25%. If this happens, what will be the cash received for the month of March?
4. The following is an extract from the financial statements for GS Co.Year 2019 2018
Revenue $600,000 $520,000
Gross Profit $390,000 $300,000
Net Profit $120,000 $65,000
Current Assets $150,000 $210,000
Current Liabilities $130,000 $160,000
Closing Inventory $40,000 $60,000
Non-Current Liabilities $400,000 $480,000
Equity consists of 500,000 shares of $2 each along with a general reserve of $100,000.
A. Calculate the Return on Capital Employed for 2019.
B. What is the gross profit margin for 2019?
C. What is the Net Profit margin for 2018?
D. What is the current ratio for 2019?
E. Calculate the gearing ratio for 2018.
F. It has been noted that the net profit for 2019 has nearly doubled compared to 2018, despite a small rise in the revenue. Which of the following assumptions could support this observation?
5. The following information relates to Hazaa Supermarket. It operates in the town of Jesla, which has approximately 900,000 customers at the local supermarkets. The overall revenue earned in the supermarket industry is at $36 million for 2017.Hazaa sells their own canned Chicken Curry which is popular among the locals and sold over 30,000 cans in the past year, equivalent to almost $120,000 of revenue.
Number of customers served 96,000
A. Calculate the market share for Hazaa based on Revenue.
B. Calculate the market share for Hazaa based on Customers served.
C. If the revenue for Hazaa was $2,760,000 in 2016, what the % increase in 2017?
D. What proportion of revenue is represented by sales of the canned chicken curry?
E. If the cost per can of chicken curry is $1.2, what is the contribution made on it in 2017?
F. When evaluating the status of the Canned Chicken Curry, which of the following is a suitable measure?