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Date Submitted: 12/22/2010 05:58 PM
ACCOUNTING FOR MANAGEMNET CONTROL
BEMM 735
REVISION – MOCK EXAM
Question 1.
DT plc is a high street retailer, selling a variety of household goods. The following information has been extracted from the recently published financial statements of DT plc.
DT plc |
STATEMENT OF FINANCIAL POSITION AT 30 APRIL |
| 20x9 | 20x8 | |
| £’000 | £'000 | £’000 | £'000 | |
ASSETS | | | | | |
Non-current assets | | | | | |
Property, plant and equipment | | 1,850 | | 1,430 | |
Current assets | | | | | |
Inventory | 640 | | 490 | | |
Accounts receivable | 1,230 | | 1,080 | | |
Cash | 80 | 1,950 | 120 | 1,690 | |
| | | | | |
Total assets | | 3,800 | | 3,120 | |
| | | | | |
EQUITY AND LIABILITIES | | | | | |
Capital and reserves | | | | | |
Ordinary share capital | 800 | | 800 | | |
Reserves | 1,245 | 2,045 | 875 | 1,675 | |
| | | | | |
Non-current liabilities | | | | | |
10% debentures | | 800 | | 600 | |
Current liabilities | | | | | |
Bank overdraft | 110 | | 80 | | |
Accounts payable | 750 | | 690 | | |
Taxation | 30 | | 20 | | |
Dividends | 65 | 955 | 55 | 845 | |
| | | | | |
Total equity and liabilities | | 3,800 | | 3,120 | |
| | | | | |
DT plcEXTRACTS FROM INCOME STATEMENT FOR THE YEAR ENDED 30 APRIL |
| 20x9 | 20x8 |
| £’000 | £'000 |
Sales | 11,200 | 9,750 |
Cost of sales | (8,460) | (6,825) |
| | |
Profit before tax | 646 | 444 |
Income tax expense | (181) | (124) |
Profit for the period | 465 | 320 |
| | |
Profit is arrived after charging: | | |
Depreciation | (360) | (280) |
Debenture interest | (80) | (60) |
Interest on bank overdraft | (15) | (9) |
Audit fees | (12) | (10) |
| | |
The following...