Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

INTRODUCTION:

Chameleon Limited is a London-based company in the midst of change. Recently, the comapny's finance director, Jimmy Beam left, as did the Chief Accountant, Jackie Daniels. Unfortunately this was shortly before the Income Statement and Balance Sheet relating to the latest financial year had been prepared. Additionally, the company is considering acquiring a small company, Petite Limited, which is a distribution business; there are concerns about the cash flow management of that company. To add to the woes, Jimmy and Jackie had agreed to prepare a short presentation to incoming graduate trainees, the focus of the presentation being the theoretical underpinning of the preparation of financial statements. The Chief Executive, Lyn-Lan Park, knows very little about financial matters and has asked, indeed begged, for your assistance.
 
SECTION 1:
 
Lyn-Lan Park is under pressure from Chameleon Limited's auditors to produce the Income Statement for the year to 30 September 2012, and a balance sheet at that date. The relevant data required for the construction of these statements are detailed in Appendix A. 
 
Using the data in Appendix A you are required to:

a)  Construct and present the Income Statement and Balance Sheet.

SECTION 2:

Chameleon Limited is considering acquiring Petite Limited. Lyn-Lan Park has heard rumours that the company has cash low issues.  Petite Limited  as a small company  is obliged to register limited financial information with the regulatory authorities. Appendix B contains the latest financial information relating to Petite Limited. 
 
Using the information in Appendix B you are required to:

a)  Construct and present a cash flow statement in a form suitable for publication for the year ended 30 September 2012;

b)  Advise Lyn-Lan Park on what is revealed by the statement.

SECTION 3:

Chameleon Limited has just started a graduate trainee scheme. The first students, recent MSc graduates from a well-known London university, have just joined. A presentation has been scheduled for mid-November 2012. Now that  Jimmy and Jackie have left, Lyn-Lan Park has no presentation. Accordingly she has asked you to prepare  a PowerPoint presentation. 
 
You are required to:

a)  Prepare a presentation using between TEN (10) and FIFTEEN (15) slides, relating to: The Theoretical Underpinning of Profit Measurement and the Valuation of Assets and Liabilities: Concepts and Conventions, and Issues in their Application.

332_chameleon limited.jpg

CHAMELEON LTD TRANSACTIONS DURING YEAR ENDED 30 SEPTEMBER 2012:
 
1) New inventories, 30,000 units, were purchased on credit during the year for £360,000.  Inventories are valued on a simple average basis. At  the end of the year 2,000 units remained in stock. At the end of the year suppliers were owed £15,000.

2) Credit sales totalled £700,000 and cash sales amounted to £100,000. During the year a customer went bankrupt owing £30,000 and this debt is to be written off. At 30 September 2012 trade receivables owed £40,000 and a provision for bad debts to be created equivalent to 10% of year end trade receivables.

3) 1,000 units of inventory were damaged on last day of year and were written off.

4) The property had fallen in value by 10% by the end of September 2012.

5) Depreciation on equipment and vehicles is charged using the reducing balance rate, at twice the straight line % rate. Equipment and vehicles, all originally purchased on 1 October 2010, had an anticipated useful life of 5 years. During this   latest  financial year, a piece of equipment was sold  for £1,500. It is the company's policy to not charge depreciation during the year of disposal. Its original cost was £10,000.

6) Wages and salaries amounted to £100,000 and were paid.

7) Other expenses were £10,000 per month, paid with one month's delay.

8) A  legal claim for damages arising from an injury sustained by a customer during a visit to the company had been received. The claim is for £25,000.

9) Tax is estimated as being £25,000 for the year to 30 September 2012. During the year last year's tax and dividends payables amounts had been paid.

10) The preference dividend liability for the financial year was recognised on  30 September  2012.  Additionally, an ordinary share dividend of £0.05 per share was declared. On that day £10,000 was repaid re: bank loan, and £3,000 interest was also paid.

11) Any changes in provisions for bad/doubtful debts and provisions  for  liabilities, profits/losses  arising from  disposals of non-current assets and impairment charges are included in the operating profit calculation.

1276_balance sheet.jpg

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M9245

Have any Question? 


Related Questions in Cost Accounting

Assignment cost accountingoverviewthe final project for

Assignment: Cost Accounting Overview The final project for this course is the creation of a quantitative analysis with a memo to management. Classifying a company's costs allows for an in-depth analysis of the impact tha ...

Assignmentwhile a form of abc was being used by general

Assignment While a form of ABC was being used by General Electric back in the sixties, widespread use of ABC didn't began in the United States until the late eighties. The early focus of ABC was on developing more reliab ...

Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

Assignmentdolan products is a small family owned audio

Assignment Dolan Products is a small, family owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers ...

Cost behaviordetermining cost behavior please respond to

Cost Behavior Determining Cost Behavior: Please respond to one of the following: Option 1 Choose a company that interests you. It could be your current employer, a past employer, or even a future employer. Compare and co ...

Case questions rio grande medical center cost allocation

CASE QUESTIONS RIO GRANDE MEDICAL CENTER Cost Allocation Concepts 1. Is it "fair" for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpati ...

Instructionsnbspbull all questions carry equal marksbull

Instructions:   • All Questions carry equal marks. • All Questions are compulsory • All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3in not more than 500 words for each subse ...

For your assignment you will apply the fundamental concepts

For your Assignment, you will apply the fundamental concepts of accounting and finance that you are studying to complete several problems indicative to real-world business scenarios and challenges. For this Assignment, t ...

Accounting1 lisa inc estimates that its employees will

Accounting 1. Lisa Inc. estimates that its employees will utilize 200,000 direct labor hours during the coming year. Total overhead costs are estimated to be $6,700,000 and machine hours are estimated to be 100,000. Actu ...

Discuss cost management as a professionname three

Discuss cost management as a profession Name three professional cost management organizations and explain their roles. Where in the corporate, not for profit, areas would cost accountants work and what types of work woul ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen