Financial Management 555 Assessment 2

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Financial Management 550

Assessment 2

|Matt Grabham | |Student Number – 15805766 | |Word Count Question 5 - 237 | |Word Count Question 6A - 139 | |Word Count Question 6B - 272 |

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TABLE OF CONTENTS

Index of Tables and Figures3
Question 14
Question 2A5
Question 2B Part 15
Question 2B Part 26
Question 2C 9
Question 3A10
Question 3B10
Question 3C11
Question 3D12
Question 3E13
Question 4A14
Question 4B14
Question 4C15
Question 516
Question 6A17
Question 6B19
Reference List24

INDEX OF TABLES AND FIGURES

Table 1 Recording of Transaction4
Table 2 Depreciation Straight Line Method - Summary5
Table 3 Depreciation Straight Line Method5
Figure 1 Depreciation Straight Line Method5
Table 4 Depreciation Reducing Balance Method (3 Year)6
Table 5 Depreciation Reducing Balance Method (7 Year)6
Figure 2 Depreciation Reducing Balance Method (7 Year)7
Table 6 Reducing Balance Method 18.376673%7
Figure 3 Reducing Balance Method 18.376673% Graph8
Table 7 Production Hours – Units of Production Method9
Table 8 Units of Production Method9
Table 9 Periodic Inventory System – Weighted Average10
Table 10 Periodic Inventory System – Weighted Average – Cost of Sales10 Table 11 Periodic Inventory System – FIFO10
Table 12 Periodic Inventory System – LIFO11
Table 13 Perpetual Inventory System – Weighted Average12
Table 14 Perpetual Inventory System – FIFO13
Table 14 Table of Transactions14
Table 16 Statement of Financial Performance14
Table 17 Balance Sheet – Green Leaf LTD15
Table 18 Billabong Annual Cash Flow Statement17
Table 19 Billabong Annual Income Statement19
Table 20 Billabong Annual Balance Sheet20
Table 21 Ratios Derived from Billabong Financial Statements22

Q1 RECORDING OF TRANSACTIONS

|Assets = |L + |O/Equity |Income | |Trade name Deep Fork | Intangible Asset | $300,000.00 |  |  |-$300,000.00 | |Spare parts | Provision for Spare|$60,000.00 |  |  |-$60,000.00 | | |Parts | | | | | | Spare parts | Replacement of |$10,000.00 |  |  |-$12,000.00 | | |Spare Parts | | | | | |Modifications to the Machine | Provision for upgrade of the | | |machine to improve performance | |Cost of Machine |29,000.00 | |Estimated Residual Value |7,000.00 | |Estimated useful life |7 Years |

Table 2

∴ To calculate depreciation expense for each year the total cost less the estimated residual value must be established:

$29,000.00 - $7,000.00 = $22,000.00

∴ Now the annual depreciation can now be...
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