Reference no: EM132367435
Question 1:
Telstra is Australia's leading telecommunications and technology company, and offers a full range of communications services in telecommunications.
The 2018 Annual report for the Company is provided on the subject Moodle shell.
Using the 2018 annual report, Compare the financial results of the Company between 2017 and 2018. You should use any financial information provided in the 2018 reports (including ratios, and narratives) to conclude on the improvements or not in financial position and profitability. You discussion should focus on reasons for this.
What other information would you need to make an assessment of Telstra?
Question 2:
The 2018 Telstra Sustainability Report is provided on the subject Moodle shell.
Use this information to explain how Telstra is meeting the UN Sustainable Development Goals (SDGs). What is your opinion of these initiatives?
Question 3:
Bad debts - direct write-off and allowance methods (Excluding GST)
Centenary Ceramics deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following information was extracted from the accounting records at 30 June 2019.
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Sales
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$ 552000
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Sales returns and allowances
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37900
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Cash collected
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319120
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Debts to be written off
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4022
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Required
(a) Assume that Centenary Ceramics uses the direct write-off method of accounting for bad debts.
i. Show the general journal entry required to write off the bad debts.
ii. What amount would be shown for bad debts expense in the income statement at 30 June 2019?
iii. What amount would be shown for accounts receivable in the balance sheet at 30 June 2019?
(b) Assume that Centenary Ceramics uses the allowance method of accounting for bad debts and the Allowance for Doubtful Debts account had a credit balance of $2645 at 1 July 2018. Also assume that an allowance of 1% of net credit sales is required at 30 June 2019 (ignore GST).
i. Show the general journal entries required to write off the bad debts and bring in the required allowance for doubtful debts.
ii. What amount would be shown for bad debts expense in the income statement at 30 June 2019?
iii. What amount would be shown for accounts receivable in the balance sheet at 30 June 2019?
Question 4:
Statement of cash flows for a company
Below are the comparative statements of financial position of Lithium Ltd.
LITHIUM LTD
Comparative Statements of Financial Position
as at 30 June
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|
|
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2020
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|
|
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2021
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|
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ASSETS
Petty cash
Cash at bank Bank bills
|
|
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$ 200
24 200
10 000
|
|
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$ 400
30 600
12 000
|
|
Accounts receivable
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$ 102
|
960
|
|
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$ 127
|
400
|
|
|
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Allowance for doubtful debts
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(6
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960)
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96
|
000
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(11
|
400)
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116
|
000
|
|
Inventory
|
|
|
74
|
600
|
|
|
70
|
800
|
|
Motor vehicles
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42
|
000
|
|
|
50
|
400
|
|
|
|
Acc. depr. - motor vehicles
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(10
|
000)
|
32
|
000
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(12
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800)
|
37
|
600
|
|
Office furniture
|
16
|
000
|
|
|
18
|
400
|
|
|
|
Acc. depr. - off. furn.
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(7
|
600)
|
8
|
400
|
(8
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400)
|
10
|
000
|
|
|
|
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$ 245
|
400
|
|
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$277
|
400
|
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LIABILITIES AND EQUITY
|
|
|
|
|
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Accounts payable
|
45
|
000
|
47
|
200
|
|
Current tax liability
|
3
|
200
|
4
|
200
|
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Share capital
|
165
|
000
|
196
|
000
|
|
Retained earnings
|
32
|
200
|
30
|
000
|
|
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$245
|
400
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$277
|
400
|
Additional information
1. Income statement details were: sales revenue $750 000; cost of sales $603 000; expenses $116 360 (excludes depreciation and carrying amount of vehicle sold); bad debts expense $14 440; and tax expense $4200.
2. A dividend was paid during the year.
3. A vehicle that cost $5600 originally was sold during the year for $3000. The vehicle had been depreciated by $3200 at date of sale.
4. The company pays tax in one instalment. The single instalment of $3200 due by 21 October 2020 was paid.
Required
(a) Prepare a statement of cash flows for the year ended 30 June 2021 in accordance with the direct method. Include any appropriate notes.