obal Athletes Pty Ltd is a large sports goods retailer. It purchases ‘sweet spot’ badminton set rackets for $110 each from Sport Australia Pty Ltd, a large manufacturer of sports products. Sport Australia has an annual turnover of more than 30 Million and has an accruals basis accounting system. Global Athletes Pty Ltd plans to sell the badminton set rackets at a 200% mark-up to its customers. In January last year, it purchase

obal Athletes Pty Ltd is a large sports goods retailer. It purchases ‘sweet spot’ badminton set rackets for $110 each from Sport Australia Pty Ltd, a large manufacturer of sports products. Sport Australia has an annual turnover of more than 30 Million and has an accruals basis accounting system. Global Athletes Pty Ltd plans to sell the badminton set rackets at a 200% mark-up to its customers. In January last year, it purchase

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 28CE

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. Surfs Up P/L is a national retailer that sells a range of surfing and water sport equipment(surfboards, clothing, etc.) with an annual turnover of $60 million. Surfs Up purchases“Billapro” surfboards for $440 each from Billapong P/L, a large manufacturer of surfboardslocated at Gold Coast with an annual turnover of around $45 million, this was their only salefor the month. Surfs Up plans to sell the Surfboards at a 200% mark-up to its customers. InOctober last year it purchased 370 surfboards but a couple of months later (December) theydiscovered that 14 of the surfboards were faulty and subsequently returned these faultysurfboards to the manufacturer, obtaining a full refund. Assume both apply the accrualmethod of accounting.Requirement:Explain the GST consequences of this arrangement for both companies PLEASE PUT 3 REFERENCES
Surfs Up P/L is a national retailer that sells a range of surfing and water sports equipment (surfboards, clothing,etc.) with an annual turnover of $60 million. Surfs Up purchases “Billapro” surfboards for $440 each fromBillapong P/L, a large manufacturer of surfboards located at Gold Coast with an annual turnover of around $45million, this was their only sale for the month. Surfs Up plans to sell the Surfboards at a 200% mark-up to itscustomers. In October last year it purchased 370 surfboards but a couple of months later (December) theydiscovered that 14 of the surfboards were faulty and subsequently returned these faulty surfboards to themanufacturer, obtaining a full refund. Assume both apply the accrual method of accounting.Requirement:Explain the GST consequences of this arrangement for both companies. Please solve this question by Australian taxation law accordingly.
Surfs Up P/L is a national retailer that sells a range of surfing and water sports equipment (surfboards, clothing,etc.) with an annual turnover of $60 million. Surfs Up purchases “Billapro” surfboards for $440 each fromBillapong P/L, a large manufacturer of surfboards located at Gold Coast with an annual turnover of around $45million, this was their only sale for the month. Surfs Up plans to sell the Surfboards at a 200% mark-up to itscustomers. In October last year it purchased 370 surfboards but a couple of months later (December) theydiscovered that 14 of the surfboards were faulty and subsequently returned these faulty surfboards to themanufacturer, obtaining a full refund. Assume both apply the accrual method of accounting. Requirements: Explain the GST consequences of this arrangement for both companies.
Surfs Up P/L is a national retailer that sells a range of surfing and water sport equipment (surfboards, clothing, etc.) with an annual turnover of $60 million. Surfs Up purchases “Billapro” surfboards for $440 each from Billapong P/L, a large manufacturer of surfboards located at Gold Coast with an annual turnover of around $45 million, this was their only sale for the month. Surfs Up plans to sell the Surfboards at a 200% mark-up to its customers. In October last year it purchased 370 surfboards but a couple of months later (December) they discovered that 14 of the surfboards were faulty and subsequently returned these faulty surfboards to the manufacturer, obtaining a full refund. Assume both apply the accrual method of accounting.Requirement:Explain the GST consequences of this arrangement for both companies
Surfs Up P/L is a national retailer that sells a range of surfing and water sportsequipment (surfboards, clothing, etc.) with an annual turnover of $60 million. Surfs Up purchases “Billapro” surfboards for $440 each from Billapong P/L, a large manufacturer of surfboards located at Gold Coast with an annual turnover of around $45 million, this was their only sale for the month. Surfs Up plans to sell the Surfboards at a 200% mark-up to its customers. In October last year it purchased 370 surfboards but a couple of months later (December) they discovered that 14 of the surfboards were faulty and subsequently returned these faulty surfboards to the manufacturer, obtaining a full refund. Assume both apply the accrual method of accounting. Requirement: Explain the GST consequences of this arrangement for both companies.
The Ri Jung Hyuk Company sold 1,500,000 boxes of cake mix during the year under a new sales promotion program. Each box contains one coupon that, submitted with P40.00 entitles the customer to a baking pan. The Ri Jung Hyuk pays P50.00 per pan. The entity treated the premiums as selling expense. The company estimates that 80% of the coupons will be redeemed even though only 900,000 coupons had been processed during the year. What amount should Ri Jung Hyuk report as a liability for unredeemed coupons at year end?
BM Motors, Inc. employs 40 sales personnel to market its line of luxury automobiles. Theaverage car sells for P1,200,000 and a 6% commission is paid to the salesperson. BM Motorsis considering a change to a commission arrangement that woul d pay each salesperson a salaryof P24,000 per month plus a commission of 2% of the sales made by that salesperson.The amount of total car sales at which BM Motors would be indifferent as to which plan to selectis A. P22,500,000 C. P24,000,000B. P30,0 00,000 D. P12,000,000
Jude Corp. has annual sales of P50,735,000, an average inventory level of P15,012,000, and average accounts receivable of P10,008,000. The firm's cost of goods sold is 85% of sales. The company makes all purchases on credit and has always paid on the 30th day. However, it now plans to take full advantage of trade credit and to pay its suppliers on the 40th day. The CFO also believes that sales can be maintained at the existing level but inventory can be lowered by P1,946,000 and accounts receivable by P1,946,000. What will be the net change in the cash conversion cycle, assuming a 365-day year?-32.8 days-29.5 days-26.6 days-40.5 days-36.4 days
Pasti Berhad values, advertises and sells residential property on behalf of its customers. The companyhas been in business for only a short time and is preparing a cash budget for the first four months ofyear 2020. Expected sales of residential properties are as follows.Year 2019 2020 2020 2020 2020Month December January February March AprilUnits sold 10 10 15 25 30The average price of each property is RM180,000 and Pasti Berhad charges a fee of 3% of the valueof each property sold. Pasti Berhad receives 1% in the month of sale and the remaining 2% in themonth after sale. The company has ten employees who are paid monthly. The average salary peremployee is RM36,000 per year. If more than 20 properties are sold in each month, each employeewill be paid in that month a bonus of RM1,500 for each additional property sold.Variable expenses are incurred at the rate of 50% of the value of each property sold and theseexpenses are paid in the month of sale. Fixed overheads of RM44,300 per month…
Last year, Pastis Productions reported $100,000 in sales and $40,000 in cost of goods sold. Thecompany estimates it would have doubled its sales and cost of goods sold had it allowed customersto buy on credit, but it also would have incurred $50,000 in additional expenses relating to wages,bad debts, and interest. Should Pastis Productions extend credit?
ABC LTD sold 3000 bread loafs to XYZ Bakers in the year 2011 costing R1 each. XYZ Bakers has the option to return unsold breads to ABC LTD within 7 days of the sale. In the first week of 2012, XYZ Bakers returned 200 of unsold bread loafs to ABC LTD. How much sale should ABC LTD recognize in the income statement for the year 2011?
Alpha Industries consumes 30,000 units of raw materials annually at the current level of its production. Raw material is currently priced at Rs 65 per unit. The cost of ordering raw materials is Rs 2,500 per order and the carrying cost for Alpha Ltd is 25% of the average value of inventory. With the market facing a recessionary condition the suppliers of the Alpha Ltd have liberalized their credit policy and are offering a discount of 3% on thepurchases of raw materials provided the purchases exceed 1,200 units. In the light of the above situation answer the following questions: A. The EOQ of Alpha Ltd without the discount. B. Do you recommend Alpha Ltd to avail the discount offered by their suppliers? C. If Alpha Ltd decides to avail the quantity discount, what will be its EOQ (You are required to estimate the EOQ at different levels of inventory (at least consider 7 levels to justify the EOQ considered in the total of carrying inventory)?