Assignment XLS1015

Topics: Balance sheet, Generally Accepted Accounting Principles, Asset Pages: 3 (576 words) Published: April 21, 2015

ASSIGNMENT

Your firm has been approached by a listed company, EXE Limited, and asked if you will accept appointment as auditors for the year ending 31 December 2014 (it is now late November 2014).

EXE Ltd’s Finance Director provided you with the following statement of financial position and income statement information which included actual figures for years ending 31 December 2011 to 2013, with estimated figures for 2014.

EXE Ltd produces gadgets. This was once a fairly profitable industry but both the size and profitability of the industry in Australia have declined significantly in recent years due to advanced technology and replacement products (which EXE Ltd is unable to produce with its existing plant and equipment). Over recent years a number of its competitors and customers have closed down and existing tariffs, quotas and import duties on imported gadgets have been scheduled to be abolished at the beginning of 2014.

EXE Ltd’s factory closed in late November, pending the resolution of an industrial dispute (factory workers demanding a 15% wage rise and reduced hours). It is unlikely that work will resume prior to the Christmas shutdown and consequently the estimated figures for 2014 are not, in the opinion of the Finance Director, expected to change.

EXELIMITED
INCOME STATEMENT

2011
$'000

2012
$'000

2013
$'000

2014
$'000
Revenue
COGS
Depreciation
Amortisation
Interest - Expense (net)
112,500
90,000
2,000
750
2,400

115,875
98,494
2,000
750
2,000

108,923
98,031
2,000
750
1,800

92,584
86,103
2,000
750
1,500
Other expenses
1,850

1,850

1,850

1,850
NPBT
15,500

10,781

4,492

381
Tax expense
6,045

4,204

1,752

149
NPAT
9,455

6,577

2,740

232

EXE LIMITED
BALANCE SHEET AS AT

2011
$'000

2012
$'000

2013
$'000

2014
$'000
Current assets
Cash
Receivables
Inventories
Other

630
21,171
19,784
517

500
24,347
22,752
517...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Assignment Ethics Essay
  • Essay about PT 1420 Assignment 3
  • Week 5 Assignments New Essay
  • 5 Written Assignment 5 Unit 5001V1 Revision 1 Essay
  • Assignment 1 Answer Essay
  • Week 2 Assignment Essay
  • Essay on Mat 222 Week 1 Assignment
  • Quantitative Techniques (Assignment Method) Essay

Become a StudyMode Member

Sign Up - It's Free