网友您好， 请在下方输入框内输入要搜索的题目：
题目内容
（请给出正确答案）
(b) (i) Advise the directors of GWCC on specific actions which may be considered in order to improve the
estimated return on their investment of ￡1,900,000. (8 marks)
参考答案
更多 “ (b) (i) Advise the directors of GWCC on specific actions which may be considered in order to improve theestimated return on their investment of ￡1,900,000. (8 marks) ” 相关考题
考题
(b) Calculate the internal rate of return of the proposed investment and comment on your findings. (5 marks)
考题
(c) Discuss the reasons why the net present value investment appraisal method is preferred to other investmentappraisal methods such as payback, return on capital employed and internal rate of return. (9 marks)
考题
(e) Briefly provide five reasons to the management of Bailey’s why financial rewards could be considered to improve motivation. (5 marks)
考题
(c) (i) State the date by which Thai Curry Ltd’s self-assessment corporation tax return for the year ended30 September 2005 should be submitted, and advise the company of the penalties that will be due ifthe return is not submitted until 31 May 2007. (3 marks)(ii) State the date by which Thai Curry Ltd’s corporation tax liability for the year ended 30 September 2005should be paid, and advise the company of the interest that will be due if the liability is not paid until31 May 2007. (3 marks)
考题
Explain the grounds upon which a person may be disqualified under the Company Directors Disqualification Act 1986.(10 marks)
考题
(iv) Tyre recently undertook a sales campaign whereby customers can obtain free car accessories, by presenting acoupon, which has been included in an advertisement in a national newspaper, on the purchase of a vehicle.The offer is valid for a limited time period from 1 January 2006 until 31 July 2006. The management are unsureas to how to treat this offer in the financial statements for the year ended 31 May 2006.(5 marks)Required:Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended31 May 2006.(The mark allocation is shown against each of the above items)
考题
(b) Identify and explain THREE approaches that the directors of Moffat Ltd might apply in assessing theQUALITATIVE benefits of the proposed investment in a new IT system. (6 marks)
考题
(b) Discuss the relevance of each of the following actions as steps in trying to remedy performance measurementproblems relating to the ‘365 Sports Complex’ and suggest examples of specific problem classifications thatmay be reduced or eliminated by each action:(i) Focusing on and improving the measurement of customer satisfaction(ii) Involving staff at all levels in the development and implementation of performance measures(iii) Being flexible in the extent to which formal performance measures are relied on(iv) Giving consideration to the auditing of the performance measurement system. (8 marks)
考题
The IOA Division is also considering whether to undertake an investment in the West of the country (the West Project).An initial cash outlay investment of ￡12 million will be required and a net cash inflow amounting to ￡5 million isexpected to arise in each of the four years of the life of the project.The activities involved in the West project will cause the local river to become polluted and discoloured due to thedischarge of waste substances from mining operations.It is estimated that at the end of year four a cash outlay of ￡2 million would be required to restore the river to itsoriginal colour. This would also clear 90% of the pollution caused as a result of the mining activities of the IOADivision.The remaining 10% of the pollution caused as a result of the mining activities of the IOA Division could be clearedup by a further cash outlay of ￡2 million.(c) Evaluate the West project and, stating your reasons, comment on whether the board of directors of NCL plcshould spend the further ￡2 million in order to eliminate the remaining 10% of pollution. (6 marks)(Ignore Taxation).
考题
1 The Great Western Cake Company (GWCC) is a well-established manufacturer of specialist flour confectioneryproducts, including cakes. GWCC sells its products to national supermarket chains. The company’s success duringrecent years is largely attributable to its ability to develop innovative products which appeal to the food selectors withinnational supermarket chains.The marketing department of Superstores plc, a national supermarket chain has asked GWCC to manufacture a cakeknown as the ‘Mighty Ben’. Mighty Ben is a character who has recently appeared in a film which was broadcastaround the world. The cake is expected to have a minimum market life of one year although the marketing departmentconsider that this might extend to eighteen months.The management accountant of GWCC has collated the following estimated information in respect of the Mighty Bencake:(1) Superstores plc has decided on a launch price of ￡20·25 for the Mighty Ben cake and it is expected that thisprice will be maintained for the duration of the product’s life. Superstores plc will apply a 35% mark-up on thepurchase price of each cake from GWCC.(2) Sales of the Mighty Ben cake are expected to be 100,000 units per month during the first twelve months.Thereafter sales of the Mighty Ben cake are expected to decrease by 10,000 units in each subsequent month.(3) Due to the relatively short shelf-life of the Mighty Ben cake, management has decided to manufacture the cakeson a ‘just-in-time’ basis for delivery in accordance with agreed schedules. The cakes will be manufactured inbatches of 1,000. Direct materials input into the baking process will cost ￡7,000 per batch for each of the firstthree months’ production. The material cost of the next three months’ production is expected to be 95% of thecost of the first three months’ production. All batches manufactured thereafter will cost 90% of the cost of thesecond three months’ production.(4) Packaging costs will amount to ￡0·75 per cake. The original costs of the artwork and design of the packagingwill amount to ￡24,000. Superstores plc will reimburse GWCC ￡8,000 in the event that the product iswithdrawn from sale after twelve months.(5) The design of the Mighty Ben cake is such that it is required to be hand-finished. A 75% learning curve willapply to the total labour time requirement until the end of month five. Thereafter a steady state will apply withlabour time required per batch stabilising at that of the final batch in month five. The labour requirement for thefirst batch of Mighty Ben cakes to be manufactured is expected to be 6,000 hours at ￡10 per hour.(6) A royalty of 5% of sales revenue (subject to a maximum royalty of ￡1·1 million) will be payable by GWCC to theowners of the Mighty Ben copyright.(7) Variable overheads are estimated at ￡3·50 per direct labour hour.(8) The manufacture of the Mighty Ben cake will increase fixed overheads by ￡75,000 per month.(9) In order to provide a production facility dedicated to the Mighty Ben cake, an investment of ￡1,900,000 will berequired and this will be fully depreciated over twelve months.(10) The directors of GWCC require an average annual return of 35% on their investment over 12 months and18 months.(11) Ignore taxation and the present value of cash flows.Note: Learning curve formula:y = axbwhere y = average cost per batcha = the cost of the initial batchx = the total number of batchesb = learning index (= –0·415 for 75% learning rate)Required:(a) Prepare detailed calculations to show whether the manufacture of Mighty Ben cakes will provide the requiredrate of return for GWCC over periods of twelve months and eighteen months. (20 marks)
考题
(ii) Briefly discuss TWO factors which could reduce the rate of return earned by the investment as per theresults in part (a). (4 marks)
考题
(c) Explain the term ‘target costing’ and how it may be applied by GWCC. Briefly discuss any potentiallimitations in its application. (8 marks)
考题
(b) Advise the management of SCC Ltd of THREE strategies that should be considered in order to improve thefuture performance of SCC Ltd. (6 marks)
考题
2 Ice-Time Ltd (ITL) manufactures a range of sports equipment used in a variety of winter-sports in Snowland.Development engineers within ITL have recently developed a prototype of a small engine-propelled bobsleigh namedthe ‘Snowballer’, which has been designed for use by young children. The directors of ITL recently spent ￡200,000on market research, the findings of which led them to believe that a market exists for the Snowballer.The marketing director has suggested that ITL should use the ‘Olympic’ brand in order to market the Snowballer.The finance director of ITL has gathered relevant information and prepared the following evaluation relating to theproposed manufacture and sale of the Snowballer.(1) Sales are expected to be 3,200 units per annum at a selling price of ￡2,500 per unit.(2) Variable material, labour, and overhead costs are estimated at ￡1,490 per unit.(3) In addition, a royalty of ￡150 per unit would be payable to Olympic plc, for the use of their brand name.(4) Fixed overheads are estimated at ￡900,000 per annum. These overheads cannot be avoided until the end of theyear in which the Snowballer is withdrawn from the market.(5) An initial investment of ￡5 million would be required. A government grant equal to 50% of the initial investmentwould be received on the date the investment is made. However, because the Snowballer would be classified asa luxury good, no tax allowances would be available on this initial investment. The estimated life cycle of theSnowballer is six years.(6) Corporation tax at the rate of 30% per annum is payable in the year in which profit occurs.(7) All cash flows are stated in current prices and, with the exception of the initial investment and the governmentgrant, will occur at the end of each year.(8) The nominal cost of capital is 15·44%. Annual inflation during the period is expected to amount to 4%.Required:(a) Calculate the net present value (NPV) of the Snowballer proposal and recommend whether it should beundertaken by the directors of ITL. (4 marks)
考题
(b) Explain how growth may be assessed, and critically discuss the advantages and issues that might arise as aresult of a decision by the directors of CSG to pursue the objective of growth. (8 marks)
考题
(d) Suggest a set of SIX performance measures which the directors of SSH could use in order to assess thequality of service provided to its clients. (3 marks)
考题
(c) Explain the reasons for the concerns of the government of Happyland with companies such as TMC andadvise the directors of a strategy that might be considered in order to avoid being subject to any forthcominglegislation concerning the environment. (5 marks)
考题
(ii) Assuming that Donald operates through a company, advise Donald on the corporation tax (CT) thatwould be payable for the year ended 31 March 2007 if he pays himself a gross salary of ￡31,000, plusa net dividend of ￡10,000, instead of a gross salary of ￡42,648. (4 marks)
考题
(b) Donald actually decided to operate as a sole trader. The first year’s results of his business were not as he hadhoped, and he made a trading loss of ￡8,000 in the year to 31 March 2007. However, trading is now improving,and Donald has sufficient orders to ensure that the business will make profits of at least ￡30,000 in the year to31 March 2008.In order to raise funds to support his business over the last 15 months, Donald has sold a painting which wasgiven to him on the death of his grandmother in January 1998. The probate value of the painting was ￡3,200,and Donald sold it for ￡8,084 (after deduction of 6% commission costs) in November 2006.He also sold other assets in the year of assessment 2006/07, realising further chargeable gains of ￡8,775 (afterindexation of ￡249 and taper relief of ￡975).Required:(i) Calculate the chargeable gain on the disposal of the painting in November 2006. (4 marks)
考题
(b) (i) Advise Alasdair of the tax implications and relative financial risks attached to the following propertyinvestments:(1) buy to let residential property;(2) commercial property; and(3) shares in a property investment company/unit trust. (9 marks)
考题
(ii) Advise Benny of the amount of tax he could save by delaying the sale of the shares by 30 days. For thepurposes of this part, you may assume that the benefit in respect of the furnished flat is ￡11,800 peryear. (3 marks)
考题
6 Andrew is aged 38 and is single. He is employed as a consultant by Bestadvice Co and pays income tax at thehigher rate.Andrew is considering investing in a new business, and to provide funds for this investment he has recently disposedof the following assets:(1) A short leasehold interest in a residential property. Andrew originally paid ￡50,000 for a 47 year lease of theproperty in May 1995, and assigned the lease in May 2006 for ￡90,000.(2) His holding of ￡10,000 7% Government Stock, on which interest is payable half-yearly on 20 April and20 October. Andrew originally purchased this holding on 1 June 1999 for ￡9,980 and he sold it for ￡11,250on 14 March 2005.Andrew intends to subscribe for ordinary shares in a new company, Scalar Limited, which will be a UK basedmanufacturing company. Three investors (including Andrew) have been identified, but a fourth investor may also beinvited to subscribe for shares. The investors are all unconnected, and would subscribe for shares in equal measure.The intention is to raise ￡450,000 in this manner. The company will also raise a further ￡50,000 from the investorsin the form. of loans. Andrew has been told that he can take advantage of some tax reliefs on his investment in ScalarLimited, but does not know anything about the details of these reliefsAndrew’s employer, Bestadvice Co, is proposing to change the staff pension scheme from a defined benefit schemeto which the firm and the employees each contribute 6% of their annual salary, to a defined contribution scheme, towhich the employees will continue to contribute 6%, but the firm will contribute 8% of their annual salary. Themajority of Andrew’s colleagues are opposed to this move, but, given the increase in the firm’s contribution rateAndrew himself is less sure that the proposal is without merit.Required:(a) (i) Calculate the chargeable gain arising on the assignment of the residential property lease in May 2006.(2 marks)
考题
(b) (i) Advise Andrew of the income tax (IT) and capital gains tax (CGT) reliefs available on his investment inthe ordinary share capital of Scalar Limited, together with any conditions which need to be satisfied.Your answer should clearly identify any steps that should be taken by Andrew and the other investorsto obtain the maximum relief. (13 marks)
考题
(b) Advise Maureen on deregistration for the purposes of value added tax (VAT) and any possible alternativestrategy. (8 marks)An additional mark will be awarded for the effectiveness with which the information is communicated.(1 mark)
考题
PV Co is evaluating an investment proposal to manufacture Product W33, which has performed well in test marketing trials conducted recently by the company’s research and development division. The following information relating to this investment proposal has now been prepared.Initial investment $2 millionSelling price (current price terms) $20 per unitExpected selling price inflation 3% per yearVariable operating costs (current price terms) $8 per unitFixed operating costs (current price terms) $170,000 per yearExpected operating cost inflation 4% per yearThe research and development division has prepared the following demand forecast as a result of its test marketing trials. The forecast reflects expected technological change and its effect on the anticipated life-cycle of Product W33.It is expected that all units of Product W33 produced will be sold, in line with the company’s policy of keeping no inventory of finished goods. No terminal value or machinery scrap value is expected at the end of four years, when production of Product W33 is planned to end. For investment appraisal purposes, PV Co uses a nominal (money) discount rate of 10% per year and a target return on capital employed of 30% per year. Ignore taxation.Required:(a) Identify and explain the key stages in the capital investment decision-making process, and the role ofinvestment appraisal in this process. (7 marks)(b) Calculate the following values for the investment proposal:(i) net present value;(ii) internal rate of return;(iii) return on capital employed (accounting rate of return) based on average investment; and(iv) discounted payback period. (13 marks)(c) Discuss your findings in each section of (b) above and advise whether the investment proposal is financially acceptable. (5 marks)
考题
Which factor must be considered when determining the order of loading of dissimilar products through the same piping system aboard a tanker?A.Contamination of the cargoB.Flash pointsC.Reid vapor pressuresD.Specific gravities
考题
Which three best describe the customer benefits of the Cisco Lifecycle Services approach？（）A、improve the skill sets of its staff membersB、increase the value of and return on investment for its networksC、increase network staff productivityD、increase the amount of server room rack spaceE、improve network availability， resiliency， security， and scalabilityF、increase the amount of time required to integrate network changes
热门标签
最新试卷