Business Management
Financial Management and Control
PART 2 WEDNESDAY 13 DECEMBER 2006
QUESTION PAPER Time allowed 3 hours This paper is divided into two sections Section A This ONE question is compulsory and MUST be answered TWO questions ONLY to be answered
Section B
Formulae Sheet, Present Value and Annuity Tables are on pages 7, 8 and 9.
Do not open this paper until instructed by the supervisor This question paper must not be removed from the examination hall
The Association of Chartered Certified Accountants
Paper 2.4
Section A – This ONE question is compulsory and MUST be attempted 1 Hendil plc, a manufacturer of electronic equipment, has prepared the following draft financial statements for the year that has just ended. These financial statements have not yet been made public. Profit and loss account Turnover Cost of sales Gross profit Operating expenses Profit before interest and tax Interest Profit before tax Taxation Profit after tax Dividends Retained profit Balance Sheet Fixed assets Current assets Stocks Debtors Cash Current liabilities Trade creditors Dividends Overdraft £000 9,600 5,568 –––––– 4,032 3,408 –––––– 624 156 –––––– 468 140 –––––– 328 300 –––––– 28 –––––– £000 £000 £000 2,250
1,660 2,110 780 –––––– 4,550 750 300 450 –––––– 1,500 –––––– 3,050 –––––– 5,300 1,200 –––––– 4,100 –––––– 1,000 3,100 –––––– 4,100 ––––––
Net current assets Total assets less current liabilities 10% debenture, repayable 2015
Capital and reserves Ordinary shares, par value 50p Profit and loss
Hendil plc pays interest on its overdraft at an annual rate of 6%. The 10% debenture is secured on fixed assets of the company. Hendil plc plans to invest £1 million in a new product range and has forecast the following financial information: Year Sales volume (units) Average selling price (£/unit) Average variable costs (£/unit) Incremental cash fixed costs (£/year) 1 70,000 40 30 500,000 2 90,000 45 28 500,000 3 100,000 51 27 500,000 4 75,000 51 27 500,000
The
PART 2 WEDNESDAY 13 DECEMBER 2006
QUESTION PAPER Time allowed 3 hours This paper is divided into two sections Section A This ONE question is compulsory and MUST be answered TWO questions ONLY to be answered
Section B
Formulae Sheet, Present Value and Annuity Tables are on pages 7, 8 and 9.
Do not open this paper until instructed by the supervisor This question paper must not be removed from the examination hall
The Association of Chartered Certified Accountants
Paper 2.4
Section A – This ONE question is compulsory and MUST be attempted 1 Hendil plc, a manufacturer of electronic equipment, has prepared the following draft financial statements for the year that has just ended. These financial statements have not yet been made public. Profit and loss account Turnover Cost of sales Gross profit Operating expenses Profit before interest and tax Interest Profit before tax Taxation Profit after tax Dividends Retained profit Balance Sheet Fixed assets Current assets Stocks Debtors Cash Current liabilities Trade creditors Dividends Overdraft £000 9,600 5,568 –––––– 4,032 3,408 –––––– 624 156 –––––– 468 140 –––––– 328 300 –––––– 28 –––––– £000 £000 £000 2,250
1,660 2,110 780 –––––– 4,550 750 300 450 –––––– 1,500 –––––– 3,050 –––––– 5,300 1,200 –––––– 4,100 –––––– 1,000 3,100 –––––– 4,100 ––––––
Net current assets Total assets less current liabilities 10% debenture, repayable 2015
Capital and reserves Ordinary shares, par value 50p Profit and loss
Hendil plc pays interest on its overdraft at an annual rate of 6%. The 10% debenture is secured on fixed assets of the company. Hendil plc plans to invest £1 million in a new product range and has forecast the following financial information: Year Sales volume (units) Average selling price (£/unit) Average variable costs (£/unit) Incremental cash fixed costs (£/year) 1 70,000 40 30 500,000 2 90,000 45 28 500,000 3 100,000 51 27 500,000 4 75,000 51 27 500,000
The