70.2K

Verified Solution

Link Copied!

2. In addition to the above information, it should be noted that the company also has a bank loan of 1.6m with an interest charge of 6%. Also, it owns factory machinery that was valued at 1.8m when new 2 years ago. The company has a 10% straight line depreciation policy for this. (a) () Prepare a profit and loss statement, clearly showing the gross margin and the net profit before and after finance costs. (50%) (ii) Whizzbang Limited is a small custom car manufacturer, and is preparing accounts for the financial year-end. It has the following data (presented in no particular order) to use for the accounts: Sales of new cars: 120 cars @ 68,000 each Sales of used cars: 13 cars @ average price 19,000 each Sales of spare parts: 103,000 Commission paid to distributors: 5% of sales of new cars and spare parts sales only Stock of completed cars, start of year: 12 cars, stock value 26,000 each Stock of completed cars, end of year: 8 cars, stock value 26,000 each Stock of parts, start of year: 645,000 Stock of parts, end of year: 702,000 Materials costs: 2,540,000 Purchase price of used cars: Average 12,000 each car Design staff costs: 357,000 Sales staff costs: 430,000 Assembly labour 1,450,000 Office rental: 36,000 Factory rental: 65,000 Insurance/professional costs: 108,000 Factory consumables: 33,000 The Directors decide to award themselves a bonus of 80,000, and give 50% of the remaining profit to the shareholders via a dividend. What is the dividend per share? Taxation is 20% and there are 200,000 issued shares. (15%) (b) "We know the work we do has a huge impact on our local communities and wider society, so our vision is for our business to be as sustainable for people and the environment as it is for our shareholders." (0) Discuss how the vision of a company, such as the example above, is interpreted into how it goes about its business. (10%) (ii) Describe some of the factors (both internal and external ones) that influence how business is conducted

Answer & Explanation Solved by verified expert

See Answer