Vous êtes sur la page 1sur 8

SEMESTER I EXAMINATIONS

ACADEMIC YEAR 2016/17

ACC40630
Accounting Information for Managers

Dr. Antoinette Flynn


Professor Ciarn hgartaigh
Professor Eamonn Walsh
Ms. Celine Craddock *

Time Allowed: 2 Hours

Instructions for Candidates


Answer all Four Questions

Instructions for Invigilators


Non-programmable calculators are allowed
This examination paper should be collected at the end of the examination.

Student Number

Seat Number

Page 1 of 8
Question One
Yeates Company, a retail business, has been trading for some time. The statement of financial
position at 31st December 2014 was as follows:

Non-current assets
Property, plant and equipment
Premises 94,000
Plant & machinery cost 160,000
- depreciation -80,000 80,000
174,000
Current assets
Inventories 42,000
Prepaid expenses 4,000
Trade receivables 29,000
Cash at bank 46,000
121,000
Total assets 295,000

EQUITY AND LIABILITIES


Equity 190,000
Non-current liabilities
Bank Loan 74,000
Current liabilities
Trade payables 31,000
Total equity and liabilities 295,000

During the year to 31st December 2015 the following total transactions took place:

1. An additional item of machinery was bought for 70,000 and paid for immediately.

2. Sales revenue of 120,000 was made on credit. The inventories sold cost 18,000.

3. Sales revenue of 20,000 was made for cash. The inventories sold cost 4,400.

4. Inventories costing 26,000 were bought, all on credit.

5. Cash totaling 32,000 was received from trade receivables.

Page 2 of 8
Question One (continued /over)

6. Trade payables were paid 16,000.

7. Electricity bills totaling 14,000 were paid. The bill for the three month period ending
on 31st December 2015 of 3,500 remained unpaid.

8. There is a prepaid wages expense on the Statement of Financial Position, an opening


balance of 4,000 at the beginning of the year. During the year wages of 15,000
were paid. At the end of the year 1,000 was owed.

9. General expenses of 15,000 were paid.

10. The business wishes to depreciate all plant and machinery owned at the end of the
year by 25% of its cost value.

Requirements:

(A) Prepare an income statement for the year ended 31st December 2015. (10 marks)

(B) Prepare a statement of financial position as at 31st December 2015. (15 marks)

(Total: 25 marks)

Page 3 of 8
Question Two

The following are the summarised financial statements of Keane Ltd for the past two years.
Keane Ltd.s year end is 31 December 2015.

Income Statement Year 2014 Year 2015


'000 '000
Revenue 130,800 140,000
Cost of sales 86,400 80,000
Gross profit 44,400 60,000
Expenses 14,200 22,000
Operating profit 30,200 38,000

Statements of Financial Position


Year 2014 Year 2015
'000 '000
ASSETS
Non-current assets 432,000 602,000
Current assets
Inventories 37,300 32,640
Trade receivables 57,300 58,200
Bank 33,000 6,200
127,600 97,040
Total assets 559,600 699,040

EQUITY AND LIABILITIES


Equity
1 ordinary shares 300,000 300,000
Share premium 69,300 69,300
Reserves 107,900 138,100
477,200 507,400

Non-Current liabilities
Bank loan 42,600 153,340

Current liabilities

Trade payables 39,800 38,300


Total equity and liabilities 559,600 699,040

Page 4 of 8
Required:

(A) Comment on the financial performance and position of Keane Limited over the two
years using ratios and any other information that you consider appropriate.
(15 marks)

(B) There was no dividend paid in 2014. In 2015 it has been suggested to pay a dividend of
15,000 to the shareholders. Discuss this proposed plan.
(5 marks)

(C) Briefly discuss the limitations of your analysis. (5 marks)

(Total: 25 marks)

Page 5 of 8
Question Three

Anton Ltd is choosing one product to manufacture from the three screens produced in their
technology range. All products are to be sold to retail outlets in Ireland at 25 per unit. The
three products differ in their fixed costs and variable costs per type of technology.

Annual Fixed Costs Variable


Manufacturing Costs
per unit

Laptop screen 280,000 12.00
Tablet screen 310,000 12.50
Mobile Phone screen 420,000 9.25

Required:

(A) Compute the break-even point of Anton Ltd in units for each of the three products
laptop screen, tablet screen, and mobile phone screen.

(6 marks)

(B) If Anton Ltd could sell 125,000 units in any of the three products, what is the
budgeted operating income for each of them?

(6 marks)

(C) On Saturday one of the two machines used to make the products broke down and will
not be fixed for three months due to the parts required. There are 2,000 machine
hours available on the working machine and each product requires machining time as
follows:

Laptop screen Tablet screen Mobile Phone


screen
Machine hours 2 5 5
used per unit
Maximum 150units 300units 300units
customer demand
for product
Maximum

Page 6 of 8
machine hours
available 2,000
hours

(1) If the company were to choose more than one product to manufacture, recommend
(with an appropriate justification) which products in which quantities should be
manufactured based on the scarce resource of machine hours to ensure profits are
maximised.
(9 marks)

(2) Using the strategy outlined at part 1 above what is the total contribution that will
be made based on this selection.
(4 marks)

(Total 25 marks)

Page 7 of 8
Question Four

ANSWER BOTH PARTS

Part A

Critically discuss ONE of the following:

1. Discuss the difference between the four financial statements and their relationship to
one another.

2. Outline the importance of budgeting and variance analysis in the successful


management of a company.

3. Discuss the value contributed to stakeholders by the financial and management


accounting functions in a company.

(10 marks)

Part B

Discuss the challenge for the user in reading financial reports taking into consideration
the use of impression management, with reference to relevant academic literature.

(15 marks)

(Total: 25 marks)

Page 8 of 8

Vous aimerez peut-être aussi