Kookaburra Ltd is always running short of cash, despite growing sales volumes and its current assets exceeding its current liabilities. A review of its operations by a consultant finds that a considerable portion of the company’s inventory is obsolete stock for which there is limited demand. Further, many of the accounts receivable are overdue by more than 60 days. The accounts receivable and inventory are carried at their gross amount and cost value, respectively, on the statement of financial position. Explain how the accounts receivable and inventory should be valued on the statement of financial position. If Kookaburra Ltd was to apply the correct measurement basis, determine the effect on: (1) profit; and (2) assets.
> Determine the growth constant of a population that is growing at a rate proportional to its size, where the population doubles in size every 40 days and time is measured in days.
> The size of a certain insect population is given by P(t) = 300e0.01t, where t is measured in days. (a) How many insects were present initially? (b) Give a differential equation satisfied by P(t). (c) At what time will the initial population double? (d) A
> After t hours there are P(t) cells present in a culture, where P(t) = 5000e0.2t. (a) How many cells were present initially? (b) Give a differential equation satisfied by P(t). (c) When will the initial number of cells double? (d) When will 20,000 cells b
> Approximately 10,000 bacteria are placed in a culture. Let P(t) be the number of bacteria present in the culture after t hours, and suppose that P(t) satisfies the differential equation P (t) = .55P(t). (a) What is P(0)? (b) Find the formula for P(t). (c
> Let P(t) be the population (in millions) of a certain city t years after 2015, and suppose that P(t) satisfies the differential equation P (t) = .03P(t), P(0) = 4. (a) Use the differential equation to determine how fast the population is growing when it
> Differentiate the functions. y = (x2 – 1) / (x2 + 1)
> The initial size of a bacteria culture that grows exponentially was 10,000. After 1 day, there are 15,000 bacteria. (a) Find the growth constant if time is measured in days. (b) How long will it take for the culture to double in size?
> A colony of fruit flies exhibits exponential growth. Suppose that 500 fruit flies are present. Let P(t) denote the number of fruit flies t days later, and let k = .08 denote the growth constant. (a) Write a differential equation and initial condition tha
> A colony of fruit flies exhibits exponential growth. Suppose that 500 fruit flies are present. Let P(t) denote the number of fruit flies t days later, and let k = .08 denote the growth constant. (a) Write a differential equation and initial condition tha
> Determine the growth constant k, then find all solutions of the given differential equation. y' = .4y
> Let P(t) be the population (in millions) of a certain city t years after 2015, and suppose that P(t) satisfies the differential equation P (t) = .01P(t), P(0) = 2. (a) Find a formula for P(t). (b) What was the initial population, that is, the population
> Solve the given differential equation with initial condition. 5y = 3y’ , y(0) = 7
> Solve the given differential equation with initial condition. 6y’ = y, y(0) = 12
> Solve the given differential equation with initial condition. y’ -y/7 = 0, y(0) = 6
> Solve the given differential equation with initial condition. y’ - .6y = 0, y(0) = 5
> Solve the given differential equation with initial condition. y ’ = y, y(0) = 4
> Differentiate the functions. y = 1 / (x2 + x + 7)
> Solve the given differential equation with initial condition. y’ = 2y, y(0) = 2
> Solve the given differential equation with initial condition. y’ = 4y, y(0) = 0
> Solve the given differential equation with initial condition. y' = 3y, y(0) = 1
> Determine the growth constant k, then find all solutions of the given differential equation. 5y’ - 6y = 0
> Determine the growth constant k, then find all solutions of the given differential equation. y' = y
> Write expression in the form 2kx or 3kx, for a suitable constant k. 34x/32x, 25x+1 / (2 * 2-x), 9-x / 27-x/3
> Write expression in the form 2kx or 3kx, for a suitable constant k. 7-x * 14x, 2x/6x, 32x/18x
> Write expression in the form 2kx or 3kx, for a suitable constant k. 6x * 3-x, 15x/5x, 12x/22x
> Write expression in the form 2kx or 3kx, for a suitable constant k. (1/9)2x, (1/27)x/3, (1/16)-x/2
> Write expression in the form 2kx or 3kx, for a suitable constant k. (1/4)2x, (1/8)-3x, (1/81)x/2
> Differentiate the functions. y = x – 1 / x + 1
> Graph the function f (x) = 3x in the window [-1, 2] by [-1, 8], and estimate the slope of the graph at x = 0.
> Graph the function f (x) = 2x in the window [-1, 2] by [-1, 4], and estimate the slope of the graph at x = 0.
> The expression may be factored as shown. Find the missing factors. 57x/2 - 5x/2 = √5x( )
> The expression may be factored as shown. Find the missing factors. 3x/2 + 3-x/2 = 3-x/2( )
> The expression may be factored as shown. Find the missing factors. 5x+h + 5x = 5x( )
> Write expression in the form 2kx or 3kx, for a suitable constant k. 9-x/2, 84x/3, 27-2x/3
> The expression may be factored as shown. Find the missing factors. 2x+h - 2x = 2x( )
> The expression may be factored as shown. Find the missing factors. 52+h = 25( )
> The expression may be factored as shown. Find the missing factors. 23+h = 23( )
> Differentiate the functions. y = x7(3x4 + 12x - 1)2
> Differentiate the functions. y = (x + 1)(x3 + 5x + 2)
> From the following account balances of Platypus Pty Ltd as at 30 September 2019, prepare a statement of financial position in both the T-format and the narrative classified format. Cash at bank ………………………………………………………… $ 55 000 Accounts receivable (net) ……
> Advantage Tennis Coaching, a business owned by sole trader Nicholas Cash, had the following assets and liabilities as at the financial years ended 30 June 2019 and 30 June 2020. Required (a) What is the equity as at the end of the two financial years? (
> There are four financial statements: the statement of financial position, statement of profit or loss, statement of cash flows and statement of changes in equity. Describe the information conveyed by the statement of financial position relative to that c
> You are reviewing a statement of financial position and notice that goodwill appears on the statement. Relate this information to the entity’s past investing decisions. Discuss how goodwill is measured (1) at acquisition and (2) post-acquisition.
> The High Cloud Software Company wants to increase its asset base by recognising its customer list as an asset. Discuss whether this is permissible under accounting standards.
> List three essential characteristics necessary to consider an item either as an asset or a liability.
> An entity has total assets measured at $220 000 in the statement of financial position. The entity’s liabilities total $100 000, of which $60 000 is a bank loan. Calculate the entity’s net assets. Discuss the entity’s financing decision.
> The statement of financial position for Daffodil Pty Ltd reveals cash on hand of $8000, accounts receivable of $48 000, inventory measured at $50 000 and plant and equipment measured at $116 000. The liabilities of the entity are: accounts payable $28 00
> Discuss whether the following statements are true or false. (a) The terms ‘accounts payable and ‘creditors’ mean the same thing. (b) The statement of financial position is a financial statement that shows the financial performance of an entity as at a po
> Following the collapse of the Toys“R”Us franchise in the United States, Toys“R”Us Australia went into administration on 21 May 2018, leaving 700 staff and 44 stores nationwide with an uncertain future. Subsequent to the announcement of financial difficul
> Despite Australia adopting IFRS issued by the IASB, the AASB has not adopted the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). Instead, the AASB has introduced a differential reporting framework, referred
> The most recent financial statements for the Brisbane City Council are available at www.brisbane.qld.gov.au. Referring to these statements, address the following questions. (a) Discuss why the Council is preparing GPFS. (b) Summarise the measurement basi
> The following article extract refers to the ‘goodwill glob’ and implies that it produces data that lack serviceability. Clarke and Dean (2011, p. 63) outline that there will come a time when challenges are made to the data used in company financial state
> In a significant accounting-related court case, the Australian Securities and Investments Commission (ASIC) took the directors of Centro to court over the misclassification of liabilities. On 27 June 2011, the Federal Court found the directors had breach
> During the global financial crisis in July 2008, National Australia Bank (NAB) was exposed to collateralised debt obligations (CDO). Consequently, NAB wrote down $1 billion associated with these risky instruments, with its share price plummeting and shar
> There is an IFRS on fair value measurement. The objective of this standard is to define fair value and specify the framework for measuring fair value. Identify the characteristics of assets and liabilities that should be considered when determining fair
> As a trainee accountant, you have been asked to determine the monetary value that should be assigned to the inventory of sporting equipment on hand as at the end of the financial year for Outdoor Adventures Ltd. You are currently looking at the inventory
> Koala Furniture Ltd, an office furniture retailer and wholesaler, carries a particular brand of office chair. During the year ended 30 June, the following purchases occurred. August …………………………………………… 50 chairs at $45 October ………………………………………… 60 chairs at
> Access the latest financial report for Maybank Banking Corporation on its corporate website and answer the following questions. (a) The financial institution is not following the current/non-current asset and liability classification. On what basis do yo
> When corporations found their traditional funding revenues drying up during the global financial crisis, one solution adopted by banks was to issue convertible bonds. Convertible bonds are often referred to as ‘hybrid financing’ as they have the characte
> Steam Kleen Ltd, a carpet steam-cleaning business, needs to acquire new machinery. The accountant has suggested that the entity should lease the machinery rather than take out a loan to purchase it. When the owner inquired as to why this would be prefera
> Samsung considers innovation to be crucial to its business. It values speed and exploration of new markets in order to remain competitive in a market with a constant influx of new technologies. Samsung has outlined that ‘[t]hrough the interplay of creati
> EY’s analysis of the accounts of 16 European utilities reveals that almost €17.7 billion (US$23.4 billion) was written off statements of financial position between 2010 and 2011. A large proportion (58 per cent) of this lost value was concentrated among
> When Microsoft acquired Skype, it agreed to pay US$8.5 billion. This was the most expensive acquisition Microsoft had made at that point, but was viewed as an important acquisition to compete with key business rivals. It was recorded at the time of acqui
> Simply Better Pty Ltd has just acquired the Cutie Pie business. The fair value of Cutie Pie’s net assets as at the date of acquisition is $1 855 000. Simply Better Pty Ltd has agreed to pay the owners of Cutie Pie $1 000 000 in cash and give them 100 000
> The Commonwealth Bank of Australia measures its property assets (land and buildings) on a fair value measurement basis using independent market valuations. As at 30 June 2018, the land and buildings were valued in the statement of financial position at $
> Australian Agricultural Company Ltd was formed with a grant of one million acres and the stated aim of cultivating and improving the wastelands of the colony of New South Wales. Today the company is a cattle producer with a significant position in the Au
> Using the company that you selected in question 5.38, read the independent auditor’s report. Given the estimations and assumptions involved in preparing financial statements, discuss what the auditor’s report is stating about the ‘accuracy’ of the financ
> Flight Centre Ltd’s 2017 financial report notes that PPE is carried at cost less accumulated depreciation and any impairment charges. The notes to the accounts (pp. 48 and 81) note a gain on the sale of the NZ Head Office in 2016 of $6 264 000. The head
> The following table shows the balance of an entity’s trade receivables for each of the past four years. As the table indicates, the trade receivables have increased in absolute value each year. Discuss why entities are required to disc
> Select an Australian Securities Exchange (ASX) listed company and visit its website to access the latest annual report. From the company’s statement of financial position, identify the: (a) Company’s total assets (b) Percentage of total assets that are:
> As an investor in the share market, you use the financial statements to assess the financial condition of entities. Discuss whether you would find it more useful to have items of PPE valued at historical cost or fair value.
> Golden Pineapples Pty Ltd had the following assets and liabilities at financial year end in 2019 and 2020. Required (a) What is the balance of retained earnings as at the end of the two financial years? (b) If the company reported profit after tax of $2
> Seek Ltd discloses areas involving critical accounting estimates and assumptions in the relevant notes to its financial statements. Locate the most recent annual report for Seek Ltd and identify the accounting areas that management believe have the great
> In calculating the provision for employee benefits, JB Hi-Fi Ltd includes the value attributable to employee long service leave entitlements. Explain how these entitlements differ from annual leave and sick leave entitlements. Given that most employment
> You have a friend who is considering purchasing shares in Meridian Ltd. The shares are currently trading on the securities exchange at $3.58 each. The entity’s financial statements suggest that its net assets are $250 000 and there are 150 000 shares on
> Find the University of NSW (UNSW) asset revaluation policy on the internet. Summarise the measurement of UNSW’s various asset classes. Discuss the advantages and disadvantages of the revaluation and cost measurement systems.
> On 8 November 2011, the Australian Senate passed the ‘carbon tax legislation’ in relation to the government’s clean energy proposal, including a mechanism for pricing carbon. The legislation was effective from 1 July 2012. Under the legislation approxima
> The accountant of a private secondary college, St Lucia, is preparing the school’s financial statements. Discuss the justification for the school preparing SPFS rather than GPFS.
> Using the revised Conceptual Framework definition and recognition criteria, discuss whether each of the following items can be recorded as assets. (a) Trade receivables (b) Investments in shares (c) Inventory (d) Research expenditure
> A friend who owns a small entity trading as Fairies Galore knows that you are studying accounting and asks you to prepare the entity’s classified statement of financial position in narrative format as at 30 June. The friend has provided you with the foll
> For each of the transactions identified, analyse how the asset, liability and/or equity accounts increase, decrease or remain unchanged. (Remember the accounting equation.) a. Obtained a loan to purchase equipment for $55 000. b. The owners took $400
> Knowing that you have some accounting experience, a friend has sought your advice regarding a business that she intends purchasing. The statement of financial position for the business shows total assets of $180 000 and liabilities of $90 000. The sellin
> Chic Frames Ltd was acquired by Specsavers for $8 million. The fair value of the net assets acquired by Specsavers was assessed at $5 million. Prepare the double-entry transaction that would keep the accounting equation in balance.
> One of Google’s largest acquisitions was Motorola Mobility for $12.5 billion in 2011. Google subsequently sold Motorola to Chinese giant PC producer Lenovo for $2.9 billion. Required Explain how the goodwill associated with Lenovo’s acquisition would be
> Entities spend millions of dollars on marketing and advertising intended to promote and build brands, develop customers and sell services or products. Consider a new hotel being launched. Extensive marketing spend is required to create an awareness of th
> Typical classifications of liabilities in the statement of financial position include: payables; borrowings; deferred revenue; deferred tax liabilities; provisions and other liabilities. The equity classifications for large entities are: share capital (c
> Qantas Group has been ranked amongst the top six airlines of global carriers when it comes to the availability of frequent flyer reward seats based on the ninth annual CarTrawler Reward Seat Availability Survey, which attempts to book award redemptions o
> Identify whether the following liabilities would be classified as current or non-current as at the end of the reporting period, justifying your classification decision. (a) Provision for employee annual leave (b) Long-term bank loan (c) Payroll taxes pay
> Identify whether the following assets would be classified as current or non-current as at the end of the reporting period, justifying your classification decision. (a) Prepaid expenses (b) Intangible assets (c) Plant and equipment (d) Accounts receivable
> Solve for the missing financial numbers as they would appear in the statement of financial position. Non- Current current assets assets $35 000 $46000 d. 84 000 159 000 j. 46 941 g. 24 000 m. Total Current assets liabilities a. e. $295 000 k. 129 127
> From the following account balances of Graceview as at 31 December 2019, prepare a statement of financial position in both the T-format and the narrative classified format. Note: You will need to determine the balance of the retained earnings. Cash at ba
> From the following account balances of Frosty Pty Ltd as at 30 June 2019, prepare a statement of financial position in both the T-format and the narrative classified format. Cash at bank ………………………………………………………… $ 4 000 Accounts receivable (net) …………………………
> JB Hi-Fi Ltd has a legal obligation to prepare and lodge financial statements. Access the notes to JB Hi-Fi Ltd’s most recent financial statements and identify the rules and regulations that govern the basis for the preparation of the financial statement
> In discussion of business and society, why is there a tendency to focus on large-sized rather than small- or medium-sized firms? Have the corporate ethics scandals of the past decade affected small- and medium-sized firms? If so, in what ways have these
> From your personal experience, give two examples of ethical dilemmas you have experienced as a member of an organization.
> From your personal experience, give an example of a situation you have faced that would require one of the six elements of moral judgment. Which of these six elements are most important and why?
> Compare your motivations to behave ethically with those listed in Figure 7-14. Do the reasons given in that figure agree with your personal assessment? Discuss the similarities and differences between Figure 7-14 and your personal assessment. Figure 7-1
> Give examples from your personal experience of Kohlberg’s Levels 1, 2, and 3. If you do not think you have ever gotten to Level 3, give an example of what it might be like.
> To demonstrate that you understand the three models of management ethics – moral, immoral, and amoral – give an example from your personal experience of each type. Do you agree that amorality is a serious problem? Explain.
> Give a definition of ethical business behavior, explain the components involved in making ethical decisions, and give an example from your personal experience of the sources of ethical norms that affect you while making these determinations.
