Please help me to get answers with section 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.

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Requirement: Explain the GST consequences of this arrangement for both companies.

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 1A: Costco is the largest chain of membership warehouse clubs in the world based on sales volume, and it...

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Costco is the largest chain of membership warehouse clubs in the world, based on sales volume, and it is the fifth largest general retailer in the United States. Costco focuses on selling products at low prices, often at a very high volume. These goods are usually bulk-packaged and marketed primarily to large families and businesses. Costco became the first company to grow from zero to 3 billion in sales in less than six years. In a recent fiscal year, Costcos sales totaled 116 billion, a 2 percent increase from 2015, and its net income reached 2.35 billion, an 1 percent decrease from 2015. This information, and much more, can be derived from the financial statements that merchandising firms such as Costco prepare on a regular basis to provide shareholders and other interested parties information about the companys activities and financial performance. 1. What type of information would a classified income statement provide to shareholders and other interested parties? 2. What type of information would a classified balance sheet provide to shareholders and other interested parties? Why would this information be important for calculating the working capital and the current ratio, for example?
Costco is the largest chain of membership warehouse clubs in the world based on sales volume, and it is the fifth largest general retailer in the United States. Costco focuses on selling products at low prices, often at a very high volume. These goods are usually bulk-packaged and marketed primarily to large families and businesses. Costco became the first company to grow from zero to 3 billion in sales in less than six years. In a recent fiscal year, Costcos sales totaled 76.3 billion, a 29.3 percent increase from 2006, and its net income reached 1.30 billion, an 18.1 percent increase from 2006. This information, and much more, can be derived from the financial statements that merchandising firms such as Costco prepare on a regular basis to provide shareholders and other interested parties information about the companys activities and financial performance. 1. What type of information would a classified income statement provide to shareholders and other interested parties? 2. What type of information would a classified balance sheet provide to shareholders and other interested parties? Why would this information be important for calculating the working capital and the current ratio, for example?
. 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.
Global 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 purchased 100 racquets. However, in April, it discovered that 10 of these racquets had design faults, and it returned them to the manufacturer and obtained a full refund. Explain the GST consequences of this arrangement for both parties.
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
(i) Electronics Ltd manufactures air conditioners. It purchases 200,000 units of a particular type of compressor part, CU30, each year at a cost of $64 per unit. Annual carrying cost (for insurance, material handling, breakage etc) per unit is 5% of the unit purchase price. Currently Electronics Ltd places 50 orders for 4,000 units each year and ordering costs per purchase order are $18. a) Calculate the current annual ordering cost.b) Calculate the current annual carrying cost.c) What is the current total stock administration cost?d) Calculate the EOQ.e) What is the minimum ordering cost?f) What is the minimum storage cost?g) What is the minimum total stock administration cost?h) How much savings would Electronics Ltd. make using the EOQ policy, rather than the current policy of purchasing 4,000 units per order. (ii) Maximum usage for Electronics Ltd. for any one week is 1,000 units and the minimum usage 400 units. Suppliers take anywhere from 2 to 4 weeks to deliver supplies after…
HOMEWELL Processing Company is engaged in the manufacture of rattan furniture primarily designed for the foreign market. the inventory conversion period of HOMEWELL is 45 days on average while its payable deferral period has an average of 25 days. The company, based on its past year's has experience, has a receivable collection period of 15 days. Compute for its cash conversion cycle Your answer