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    Tutorial 13 14 Revised

    Uploaded by

    Esther Lueh
    This document contains two questions from a tutorial on management accounting. Question 1 provides financial statements for two companies, Cameron Sdn Bhd and Fraser Sdn Bhd, and asks the student to calculate profitability and liquidity ratios for each company and comment on their performance. Question 2 provides summary financial statements for a trader and asks the student to calculate inventory turnover, debtor days, current ratio, and acid test ratio, comment on liquidity, and calculate new balance sheet values based on changes to credit terms and inventory levels.

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    Tutorial 13 14 Revised

    Uploaded by

    Esther Lueh
    38 views4 pages
    This document contains two questions from a tutorial on management accounting. Question 1 provides financial statements for two companies, Cameron Sdn Bhd and Fraser Sdn Bhd, and asks the student to calculate profitability and liquidity ratios for each company and comment on their performance. Question 2 provides summary financial statements for a trader and asks the student to calculate inventory turnover, debtor days, current ratio, and acid test ratio, comment on liquidity, and calculate new balance sheet values based on changes to credit terms and inventory levels.

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    This document contains two questions from a tutorial on management accounting. Question 1 provides financial statements for two companies, Cameron Sdn Bhd and Fraser Sdn Bhd, and asks the student to calculate profitability and liquidity ratios for each company and comment on their performance. Question 2 provides summary financial statements for a trader and asks the student to calculate inventory turnover, debtor days, current ratio, and acid test ratio, comment on liquidity, and calculate new balance sheet values based on changes to credit terms and inventory levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    38 views4 pages

    Tutorial 13 14 Revised

    Uploaded by

    Esther Lueh
    This document contains two questions from a tutorial on management accounting. Question 1 provides financial statements for two companies, Cameron Sdn Bhd and Fraser Sdn Bhd, and asks the student to calculate profitability and liquidity ratios for each company and comment on their performance. Question 2 provides summary financial statements for a trader and asks the student to calculate inventory turnover, debtor days, current ratio, and acid test ratio, comment on liquidity, and calculate new balance sheet values based on changes to credit terms and inventory levels.

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    © All Rights Reserved
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    UNIVERSITI TUNKU ABDUL RAHMAN

    FACULTY OF ACCOUNTANCY & MANAGEMENT


    Bachelor of Accounting (Hons)
    UKAM3043 Management Accounting III
    (Y3S1)
    Tutorial 13-14

    Questions

    Financial control

    1. 11-1

    2. 11-2

    3. 11-3

    4. 11-5

    5. 11-9

    6. 11-10

    7. 11-24

    8. 11-31

    9. 11-44

    10. 11-46
    Q1. Cameron Sdn Bhd. and Fraser Sdn Bhd. are companies operating in a similar market. Your
    manager has asked you to help her review the performance of both companies from their financial
    statements which are summarized.

    Profit and Loss accounts for the year ended 31 October 2012
    RM RM
    Cameron Fraser
    Sales 23,800 24,000
    Cost of sales 17,850 16,800
    Gross Profit 5,950 7,200
    Expenses 2,500 4,800
    Profit before tax 3,450 2,400
    Tax on profit 900 600
    Profit after tax 2,550 1,800
    1,000 900
    Retained Profit 1,550 900

    Balance Sheet as at 31 October 2012


    Cameron Fraser
    RM’000 RM’000 RM’000 RM’000
    Fixed Assets 15,000 24,000
    Current Assets
    Stock 500 1,200
    Debtors 2,000 600
    Bank 100 -
    2,600 1,800
    Current Liabilities
    Creditors 775 150
    Overdraft - 55
    Tax 900 600
    1,675 805
    Net Current Assets 925 995
    15,925 24,995
    Debentures 300 1,000
    Net Assets 15,625 23,995
    Capital and reserves
    RM1 Ordinary 12,000 20,000
    shares
    Reserves 3,625 3,995
    15,625 23,995

    REQUIRED:

    (a) Calculate four profitability ratios and two liquidity ratios for Cameron Sdn Bhd. and Fraser
    Sdn Bhd. Show all workings.
    (b) Comment briefly on the performance of two companies as indicated by the ratios you have
    calculated in Part (a).

    Q2. The following summary financial statements are available for a trader:
    Statement of Comprehensive Income for the year ended 31 October Year 2013
    RM’000
    Sales 660
    Cost of sales 416
    Gross profit 244
    Selling and administration overheads 225
    Net profit 19

    Statement Of Financial Position as at 31 October Year 2013


    RM’000
    Fixed assets (net book value) 95
    Current assets:
    Inventory 68
    Debtors 52
    Bank 14
    134
    Current liabilities:
    Creditors 46
    Net current assets 88
    Net assets 183
    Long term capital 183

    Required
    (a) Calculate the following ratios:
    (i) Stock turnover
    (ii) Debtor days
    (iii) Current
    (iv) Acid test (Quick).
    (b) Comment briefly on the liquidity of the business.

    (c) Calculate the value of each relevant Balance Sheet item as a result of each of the
    following:
    (i) Increasing the period of credit granted to customers by one month.
    (ii) Reducing the level of stock by the equivalent of two weeks’ sales.

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