Introductory Accounting Assignment

2279 WordsApr 14, 201310 Pages
ACCT 2060 Introductory Accounting Assignment - Semester 2, 2011 This assignment is designed to get you to locate the Annual Reports for a company and become familiar with the contents of an Annual Report, particularly the financial statements and the notes to the financial statements. While we have looked at very basic formats of the financial statements, the financial statements for a company contain a little more detail and information on some items you may not have been introduced to yet. Pay particular attention to the information provided in the notes to the financial statements as you will find a lot of useful information in them that may help with some of the questions. REQUIRED: You are required to obtain the 2010 Annual…show more content…
(You must refer to the relevant note to find the answer to this.) Ans: The total amount of revenue and other income in 2010 is $217,093,000 The two revenue items are Sales and Royalties. The ‘other income’ comprises of bank deposits / Net foreign exchange gains. [Ref: Blackmores AR Report August 2010, Page 53 and 67]. Question 8 Again with reference to the consolidated entity: • What is the amount of cash receipts from customers in 2010? • Why does this amount differ from the 2010 sales figure? Ans: The amount of cash receipts from customers is 2010 is $237,522,000 The amount differ from the 2010 sales figures as not all customer pay cash on payment, some may pay on credit which result in account receivable. [Ref: Blackmores AR Report August 2010, Page 57]. PART B - Analysis of financial information (12 marks) Question 1 (4 marks) Using the consolidated figures for Blackmores Ltd, calculate the following ratios for the years 2009 and 2010. Ratios are to be shown at one decimal place. You must show all your workings. (Where no workings are shown you will receive zero for this section): i. Current ratio ii. Acid test ratio iii. Gearing ratio iv. Interest cover ratio Ans: Current ratio = Current assets / Current liabilities Acid ratio = Current assets (excluding inventory and prepayments) / Current liabilities Gearing ratio = Long-term liabilities / (Share capital +
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