1 missing trading ltd purchased a business delivery

Reference no: EM13381364

1 Missing Trading Ltd, purchased a business delivery vehicle on the 1 of January 2009 for R120 000. Calculate the amount of depreciation that would be recorded as the period expense for the third year of having the vehicle (i.e. 31st December 2011) if the reducing balance method is used on vehicles at 15% pa. Also clearly state what the carrying value would be on the delivery vehicle at the 31st December 2011.

2 Taking into account the same delivery vehicle as in 1.1 above, calculate the depreciation per period if the straight line method is applied.

3 Other than FIFO, state two (2) possible methods that could be considered when calculating the value of stock.

4 The new owners of Bluegrass Natural Foods have hired you to help them diagnose and cure problems that the company has had in maintaining adequate liquidity. As a first step, you perform a liquidity analysis. You then do an analysis of the company's short-term activity ratios. Your calculations and appropriate industry norms are listed.

1422_Calculate the depreciation per period.png

a. What recommendations relative to the amount and the handling of inventory could you make to the new owners?

b. What recommendations relative to the amount and the handling of trade receivables could you make to the new owners?

c. What recommendations relative to the amount and the handling of trade and other payables could you make to the new owners?

d. What results, overall, would you hope your recommendations would achieve? Why might your recommendations not be effective?

Reference no: EM13381364

Questions Cloud

The friendly national bank holds 50 million in reserves at : the friendly national bank holds 50 million in reserves at its federal reserve district bank. the required reserves

Show the effect of the following transactions relating to : show the effect of the following transactions relating to whyme ltd on the accounting equation. note using the

Make m nice adopts the fifo method of valuing stock as : make m nice adopts the fifo method of valuing stock as according to the relevant accounting standards. on 1 june

An education institution is considering the production : an education institution is considering the production and marketing of an internal textbook for its students and it

1 missing trading ltd purchased a business delivery : 1 missing trading ltd purchased a business delivery vehicle on the 1 of january 2009 for r120 000. calculate the

1 sydney company has made a portfolio of these three : 1. sydney company has made a portfolio of these three securitiessecuritycostersigmartreasury bond7000050gold coast

If mrs beach wanted to invest a lump sum of money today to : if mrs. beach wanted to invest a lump sum of money today to have 100000 when she retired at 65 she is 40 years old

Question 1anna is a vice president at the j corporation the : question 1anna is a vice president at the j corporation. the company is considering investing in a new factory and anna

1 vindaloo corporation reported retained earnings of 400 on : 1. vindaloo corporation reported retained earnings of 400 on its year-end 2002 balance sheet. during 2003 the company

User Account

All Pages