ssessment item 3 back to top Case B - Report Value: 20% DueDate: 16-Sep-2018...

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ssessment item 3 back to top Case B - Report Value: 20% DueDate: 16-Sep-2018 Return Date: 05-Oct-2018 Length: 3000 wordsSubmission method options: Alternative submission method Task backto top Background You are a manager in the audit division at MillerYates Howarth (MYH), an accounting firm with offices throughout themajor regional centres of NSW and Queensland. Although a mediumsized firm by national standards, MYH is the second largestregional accounting firm in Australia. Most of MYH’s audit clientsare in the agriculture, mining, manufacturing and propertyindustries. All those industries are currently under pressure,either from a downturn in commodity prices or fierce competitionfrom overseas competitors. Ratios extracted from an unaudited setof financial reports at 30 June 2018 together with auditedcomparatives for the year ended 30 June 2017 and 2016 are set outbelow for your review. You are gathering information to prepare theaudit plan of Trunkey Creek Wines Limited for the year ended 30June 2018. Trunkey Creek Wines (TCW) is one of MYH’s mostsignificant and longstanding clients. The following information hasbeen gathered to date. Principal activities of TCW • growing grapesfor wine production; • production and distribution of red, whiteand sparkling wines; • beef cattle production on land surplus togrape production; and • investment of surplus funds. TCW wasoriginally a family company incorporated in 1968 and has operatedsuccessfully and profitably since that date. In the 1990’s shareswere sold to a small number of investors to increase funds for thedevelopment and upgrading of the winery and the purchase ofadditional land for the vineyards. Insufficient rainfall had meantthat some land was no longer suitable for wine grape production, asa result, TWC moved into Wagyu beef cattle production on thissurplus land. The Wagyu operation is now starting to return aprofit. TWC now find that the 2 degrees increase in temperature atsome vineyards is affecting the production of sparkling wine andare now looking at purchasing land in cooler climates. TWC hasbuilt up a strong following for their sparkling wine which earnssignificant profits in both domestic and overseas markets. TWC arecurrently negotiating the land purchase and part funding in partfrom medium term bank loans. The remaining purchase price will besourced from surplus funds. The Wagyu beef is sold through theWagyu Selling Group (WSG) in which TWC has shares. These sharesform a material part of TWC’s investment portfolio. WSG buys,butchers and sells the Wagyu beef to high end domestic restaurantsand regularly sends frozen shipments to Japan and China. TWC areheavily marketing their pinot, both domestically and overseas, as aperfect accompaniment to the Wagyu beef. The directors of TCW are:Mrs Claire Harewood, Chairman. Mrs Harewood has significantexperience in the industry and replaced her husband as chair whenhe died 10 years ago. Mr Phillip Strange, Chief Executive OfficerMr. Joe Quade Mr Steven Harewood, son of Claire Harewood and hasoversight of the Wagyu beef operation Dr Mary Owens Ms Hilary JonesMr Geoffrey Owens

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ANSWER A Account The review accomplice is fundamentally worried around 4 unique records head ie I Accounts Receivable ii Investments iii Property Assets iv showcasing Expenses I Accounts Receivable demonstrates the sum the element is qualified for recuperate from the client for offers of merchandise or giving of administrations ii Investment alludes to different here and now venture done by the element for creating the income for brief timeframe The organization may arrange venture in view of liquidity iii Property Assets alludes to the settled resources possessed by the organization for example arrive building and so on for use during the time spent creation or for inferring the rental pay iv Marketing Expense are those costs which are brought about to display an association products and enterprises to their imminent customersThese costs might be ordered into advertisingagency feescustomer studies advancement of publicizing and different advancements and so on B Analysis The different proportion given shows the situation of advantages over the timeframe The days in stock wine proportion demonstrates the turnover of stock which is devoured by wine This demonstrates the normal number of days in which the element sold the stock after acquisition The days in stock proportion is diminishing from 2016 onwards In year 2016 the organization is offering the stock on a normal inside 460 days and a similar lessening to 423 days in 2017 and See Answer

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In: Accountingssessment item 3 back to top Case B - Report Value: 20% DueDate: 16-Sep-2018 Return...ssessment item 3 back to top Case B - Report Value: 20% DueDate: 16-Sep-2018 Return Date: 05-Oct-2018 Length: 3000 wordsSubmission method options: Alternative submission method Task backto top Background You are a manager in the audit division at MillerYates Howarth (MYH), an accounting firm with offices throughout themajor regional centres of NSW and Queensland. Although a mediumsized firm by national standards, MYH is the second largestregional accounting firm in Australia. Most of MYH’s audit clientsare in the agriculture, mining, manufacturing and propertyindustries. All those industries are currently under pressure,either from a downturn in commodity prices or fierce competitionfrom overseas competitors. Ratios extracted from an unaudited setof financial reports at 30 June 2018 together with auditedcomparatives for the year ended 30 June 2017 and 2016 are set outbelow for your review. You are gathering information to prepare theaudit plan of Trunkey Creek Wines Limited for the year ended 30June 2018. Trunkey Creek Wines (TCW) is one of MYH’s mostsignificant and longstanding clients. The following information hasbeen gathered to date. Principal activities of TCW • growing grapesfor wine production; • production and distribution of red, whiteand sparkling wines; • beef cattle production on land surplus togrape production; and • investment of surplus funds. TCW wasoriginally a family company incorporated in 1968 and has operatedsuccessfully and profitably since that date. In the 1990’s shareswere sold to a small number of investors to increase funds for thedevelopment and upgrading of the winery and the purchase ofadditional land for the vineyards. Insufficient rainfall had meantthat some land was no longer suitable for wine grape production, asa result, TWC moved into Wagyu beef cattle production on thissurplus land. The Wagyu operation is now starting to return aprofit. TWC now find that the 2 degrees increase in temperature atsome vineyards is affecting the production of sparkling wine andare now looking at purchasing land in cooler climates. TWC hasbuilt up a strong following for their sparkling wine which earnssignificant profits in both domestic and overseas markets. TWC arecurrently negotiating the land purchase and part funding in partfrom medium term bank loans. The remaining purchase price will besourced from surplus funds. The Wagyu beef is sold through theWagyu Selling Group (WSG) in which TWC has shares. These sharesform a material part of TWC’s investment portfolio. WSG buys,butchers and sells the Wagyu beef to high end domestic restaurantsand regularly sends frozen shipments to Japan and China. TWC areheavily marketing their pinot, both domestically and overseas, as aperfect accompaniment to the Wagyu beef. The directors of TCW are:Mrs Claire Harewood, Chairman. Mrs Harewood has significantexperience in the industry and replaced her husband as chair whenhe died 10 years ago. Mr Phillip Strange, Chief Executive OfficerMr. Joe Quade Mr Steven Harewood, son of Claire Harewood and hasoversight of the Wagyu beef operation Dr Mary Owens Ms Hilary JonesMr Geoffrey Owens