Questions from General Accounting

Q: In its 2018 annual report, JB Hi-Fi Ltd provides

In its 2018 annual report, JB Hi-Fi Ltd provides the gross margin for each of its divisions. Discuss what factors impact on the variation of these margins across the three divisions.

Q: There are a variety of tools available to assist business owners to

There are a variety of tools available to assist business owners to better understand the performance and position of their business. One such tool, provided by the ATO, allows a financial ratio compa...

Q: The following is a summary of key reported figures for Woolworths Ltd’s

The following is a summary of key reported figures for Woolworths Ltd’s business segments for 2018 and 2017. Report on the profitability of the business segments.

Q: The following table shows the returns and valuations of selected listed retailers

The following table shows the returns and valuations of selected listed retailers as at June 2018. Required (a) Explain what is meant by ‘P/E (times)’. (b) Calcula...

Q: The most recent annual statement of profit or loss for High Tower

The most recent annual statement of profit or loss for High Tower Enterprises is presented below. Prepare a vertical analysis of the statement. HIGH TOWER ENTERPRISES Statement of profit or loss Incom...

Q: During 2021, Barb Ryan, the sole shareholder in Sunshine Farms

During 2021, Barb Ryan, the sole shareholder in Sunshine Farms Pty Ltd, decides to invest in automotive manufacturing equipment to reduce direct labour costs. She decides to fund the investment of $14...

Q: Savannah Ltd had $84 000 of profit and incurred $16

Savannah Ltd had $84 000 of profit and incurred $16 500 in net finance costs during the recently completed period. Savannah’s liabilities and owner’s equity total $925 000. Assuming a 30 per cent tax...

Q: Examine what happens to the current ratio when: (a

Examine what happens to the current ratio when: (a) An account payable is paid with cash (b) Inventory is purchased on credit (c) Money is received from a debtor.

Q: Examine what happens to the gross profit margin when: (

Examine what happens to the gross profit margin when: (a) Advertising is incurred (b) Selling prices are increased, assuming customers buy the same amount (c) All suppliers increase their prices.

Q: Examine what happens to the debt ratio when: (a

Examine what happens to the debt ratio when: (a) Short-term debt is converted into an equivalent amount of long-term debt (b) A major asset is sold, with part of the proceeds being used to repay debt...