PROBLEM: Financial Perspective Gloria Corporation presents the following information for year 2020 & 2021 2021 P 38, 000 2020 P 45, 000 Sales Production Expenses Direct materials 12,000 10, 000 9, 504 Direct labor 8, 976 Factory overhead 5, 000 5, 000 Gross Profit P 18, 000 P 14, 520 Operating Expenses 13,000 13, 000 Operating income P 5, 000 P1, 520 During the year 2020, the corporation was able to sell 10, 000 units which is 25% above the sale 2021. The same capacity was used for factory overhead and operating expenses for years 2020 2021. Other data are as follows: 2020 2021 Raw materials used ( kg) 1, 200 720 Direct labor hours 1, 000 816
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- CJB's fiscal 2020 net income was $155.9 and cash flows from operating activities was $132.0 million What impact does this have on the evaluation of the 2020 earnings quality for CJB? Question 30 options: a) Weakens, due to sustainability issues b) Weakens due to substance issues c) Strengthens due to substance issues d) Strengthens, due to sustainability issuesFrom the following forecast the Balance sheet for the year 2021Balance sheet as of 31/12/2020Liabilities& Equity AmountAssetsAmountEquity33,000 Plant and machinery 10,000Retained earnings 10,000 Land Property20.000Accounts payable 7,000 Accounts receivables 3.000Inventories10.000Cash in hand2000Cash at Bank5.00050,00050,0001. It is expected that the company will make a net income of10% of forecasted sales2. The company will purchase additional 5000 OMR worthmachines by taking an additional loan of 5000 OMR3. Forecasted sales OMR 100,0004. Dividend payout will be 50%5. The following estimates are also given;Accounts payable 10,000Accounts receivable 6,000Inventories 15,000Cash in hand 6.000Cash at bank 1,000Presented below are the year-end balance of the assets and liabilitiespertaining to Starlight Merchandising 2020 2019Cash P150,000 P120,000Equity investment at FVPL 260,000 230,000AR, net 360,000 400,000Inventories 705,000 635,000Prepaid Expenses 130,000 128,000Accounts payable 182,000 136,000Other current liabilities 141,000 125,000Bonds Payable 200,000 200,000Additional investment made by the owner during 2020 was P150,000 but a P200,000 personal liability was paid out of company's funds. What is the company's profit or loss for the year ended December 31, 2020? 30,000 800,000 Answer not given 140,000 700,000
- C Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,184; Total assets = $3,000; Short-term investments = $200; Total capital employed = $2,193; and tax rate = 30%. The company’s WACC is 11.07%. What was its Economic Value Added (EVA) for the year 2020? Round your answer to the nearest dollar. Group of answer choices: $583 $586 $577 $572 $5802020 2019 Net profit for the year 1200 1100 Depreciation for the financial year 80 70 Accumulated depreciation 400 320 Fixed asset impairment reversal gains 50 20 Profits for the sale of fixed assets 100 50 Based on the above information, the cash flow of 2020 before changes in working capital accounts is?2021 2020 Usage sales 5700 5300 Other miscellaneous revenue for the financial year 300 200 Total revenue for the year 6000 5500 Cost of use sold 2680 2600 Customer and inventory impairment loss 250 220 GROSS REMUNERATION AND EMPLOYER'S CONTRIBUTIONS 800 750 Impairment provisions for the financial year 50 30 Financial costs for the financial year 300 280 Total operating expenses 900 800 Net profit for the financial year 4980 4680 Balance sheet data 1020 820 Fixed assets and investments 2000 1700 Goods 400 250 Customers minus accumulated impairment 696 1100 Customer promissory notes and bills of exchange 300 700 Cash and trading portfolio 200 350 Total assets 3596 4100 How long is the defensive period of the operation in 2021 (360days)
- 2019 2020Sales price per unit R15 R19Variable cost per unit R6 R7Fixed cost (FC) per annum R650 000 R 855 500Fixed cost per unit R3 R4 Current assets R450 600 R560 700Current liabilities R510 000 R780 000Retained profit R21 809 R17 600Net Sales R2 900 320 R 3 100 100Cost of sales R390 000 R475 000 Q.5.1 a. Calculate the break-even point for Pearson & Litt for 2019 and 2020.b. Compare the results of the 2019 and 2020 break-even points and explain why there might be a difference. Q.5.2 a. Calculate the current ratio for Pearson & Litt for 2019.b. Explain the results of the current-test ratio.Q.5.3 a. Calculate the gross profit margin for Pearson & Litt for 2020 b. Explain the results of the gross profit margin calculation. Q.5.4 a. Differentiate between traditional budgeting and zero-base budgeting.b. Recommend one of these budgeting methods to Pearson & Litt and provide reasons for your recommendationPerform a vertical analysis on the following information. 2021 2020Cash $ 420,000 $ 1,050,000Accounts receivable 660,000 300,000Inventory 1,020,000 925,000Long-term assets 3,900,000 2,725,000Total assets $ 6,000,000 $ 5,000,000Income Statement for the years ending 31 August: 2020 2019 £ £Revenue 950,000 975,000Cost of sales 455,000 460,000Gross profit 495,000 515,000Total expenses 320,000 310,000Net profit 175,000 205,000 Statement of financial position as at 31 August:- 2020 2019£ £Non-current assets 70,000 65,000Current assetsCash at bank…
- : Answers the days of Working capital based on the information below: 2020 2021 Profit of the year $126,000 $175,000 Depreciation/Amortization 25,000 35,000 Trade receivables 260,000 285,000 Inventories 350,000 390,000 Trade and other payables 290,000 310,000 Revenue 1,800,000 2,100,000Income Statement for the years ending 31 August: 2020 2019 £ £Revenue 950,000 975,000Cost of sales 455,000 460,000Gross profit 495,000 515,000Total expenses 320,000 310,000Net profit 175,000 205,000 Statement of financial position as at 31 August: 2020 2019£ £Non-current assets 70,000 65,000Current assetsCash at bank…Revenues 2021 2020 Sishen $ 21,700,000 $ 26,500,000 Hotazel $ 14,200,000 $ 16,500,000 Beaufort $ 8,700,000 $ 9,000,000 Operating Income Sishen $ 1,620,000 $ 2,000,000 Hotazel $ 810,000 $ 1,300,000 Beaufort $ 945,000 $ 1,100,000 Average Total Assets Sishen $ 9,500,000 $ 10,000,000 Hotazel $ 6,500,000 $ 8,000,000 Beaufort $ 4,300,000 $ 4,500,000 # of Managers Sishen 59 61 Hotazel 48 55 Beaufort 22 20 Vryburg’s manager compensation is an annual salary and qualifying bonus award. Managers qualify for the bonus award when their division ROA equals or exceeds Vryburg Inc. ROA. The bonus is calculated as Vryburg’s Residual Income divided by the number of qualifying managers who then share equally in the bonus pool. Residual Income is defined as Operating Income minus an interest charge of 8% of Average Total Assets. a. For 2021, calculate each division’s…