5200商务英语.doc

一：Complete the worksheet below to show the effect of the following transactions on the accounting equation of sarah andrews new business.April 2 Sarah deposited $13,000 into the business bank accountApril 3 Paid April rent of $250April 3 Purchased a truck from Good Trucksfor $8,000,paid a $2,000 depositApril 4 Paid Good Trucks on account $3,000 April 5 Obtained a loan of $10,000 for the businessApril 6 Purchased wood from Timbers Ltd on credit $4,000April 7 Paid Good Trucks the balance owingApril 8 Purchased equipment on credit from Equipment Suppliers Ltd $1,500April 9 Paid her home insurance of $600April 10 Paid for petrol $50April 11 Purchased building equipment on credit $350April 12 Invoiced G Tree for work done $6,500April 17 G Tree paid in full for work completed.April 19 Paid for advertising $150April 21 Paid Timbers Ltd $4,000April 30 Used business cash for living expenses $1,350答案：DateAssetsExpensesDrawingsLiabilitiesCapitalRevenueApril 2+13,000+13,000April 3-250+250April 3+8,000-2,000+6,000April 4-3,000-3,000April 5+10,000+10,000April 6+4,000,+4,000April 7-3,000-3,000April 8+1,500+1,500April 9-600+600April 10-50+50April 11+350+350April 12+6,500+6,500April 17-6,500+6,500April 19-150+150April 21-4,000-4,000April 30-1,350+1,350BALANCE$28,950$450$1,950$11,850$13,000$6,500二：A New Zealand business has the following cost structure:Fixed costs $100,000 per yearVariable costs $2 per unitPresent plant capacity 50,000 unitsSelling price in New Zealand $6 per unitRequired:(a)Calculate the breakeven point.(b)If the desired profit from NZ operations is $80,000, how many units must be sold?(c)Would it be profitable to sell 5,000 units of output that are surplus to New Zealand requirements to Australia at $4 per unit,if the only additional costs were shipping at $1 per unit?答案： a)CM = (Sales price-variable cost)/unit =$6$2/unit=$4 per unitBE = FC/CM =$100,000/$4 =25,000 unitsb)Break-even + profit=(fixed costs + profit)/contribution margin =$180,000/$4 =45,000 unitsc)$Sales (5,000*$24)20,000Less variable costs (5,000*$2)(10,000）Less additional variable costs(5,000*$1)(5,000)Contribution to profit$5,000Yes it would be profitable to sell the 5,000 units of output.三： study the following Financial Statements for two similar types of businesses and then answer the qewstions which follow. Income Statement Dalton Ltd Back well LtdRevenueSales(all on credit) 320,000 480,000less Cost of goods soldOpening inventory 100,000 90,000add Purchases 200,000 364,000 300,000 454,000less Closing inventory (60,000) (240,000) (70,000) (384.000)Gross Profit 80,000 96,000 Depreciation 4,000 8,000Other expenses 26,000 8,000Interest expense 10,000 10,000Tax 10,000 (50,000) 20,000 (46,000)After tax Profit for the Period $30,000 $50,000Required:(a) Calculate the following ratios:i)Return on Assetsii)Return on Equityiii)Current ratioiv)Liquid ratiov)Interest covervi)Equity ratiovii)Age of accounts receivableviii)Inventory turnover (days).(b) Comment on:i)Profitabilityii)Asset efficiencyiii)Liquidity and financial stability of each business答案：Dalton Ltd.Back well Ltd.i. Return on Assets17.6%26.0%ii. Return on Equity18.4%31.1%iii. Current ratio9:14:1iv. Liquid ration6:12.25:1v. Interest cover5:18:1vi. Equity ratio58%56%vii. Age of accounts receivable114 days61 daysviii. Inventory turnover (days)122 days76 days过程i) Return on Assets =Net profit before interest and tax(EBIT)/Average total assets x 100%Dalton=(30,000+10,000+10,000)/(280,000+288,000)/2)=17.6%Backwell=(50,000+20,000+10,000)/(300,000+316000)/2)=26%ii) Return on Equity %=Net profit after interest and tax/Average ordinary shareholdersequity x 100%Dalton=30,000/(16,800+58,000+100,000)/2)=18.4%Backwell=50,000/(176,000+100,000+46000)/2)=31.1%iii) Current Ratio=Current asset/Current liabilitiesDalton=180,000/20,000=9:1Backwell=160,000/40,000=4:1iv) Liquid Ratio=(Current assets - inventory)/Current liabilitiesDalton=(180,000-60,000)/20,000=6:1Backwell=(16,000-70,000)/40,000=2.25:1v) Interest Cover Ratio=Profit before interest and tax/Interest chargesDalton=(30,000+10,000+10,000)/10,000=5:1Backwell=(50,000+20,000+10,000)/10,000=8:1vi) Equity %=Owners Shareholdersequity/Total assets x 100%Dalton=168,000/288,000=58%Backwell=176,000/316,000=56%vii) Age of Account Receivable(days)=Accounts receivable/Credit sales x 365Dalton=100,000/320,000*365=114 Backwell=80,000/480,000=65viii) Inventory turnover(times)=Cost of goods sold/Average inventoryDalton=(100,000+60,000)/2/240,000=122 Backwell=(90,000+70,000)/2/384,000=76 b) Profitability: Both companies are profitable but blackwell (B) is much better than Dalton (D),with a Return on Equity 31% compared to 18%.Stability: Both are pleasingly stable with Equity ratios 50%, but B has a better Interest Cover of 8 compared to 5. Liquidity: Both seem very liquid with high Current Ratios and Liquidy Ratios but this i