Asb1106: introduction to financial and management accounting

Calculate Reflect Ltd gross profit margin for the year?

Question 6

The following information has taken and calculated from Bennet’s financial statements for the year ended 30 November 20X9.
Bennet’s cash cycle at 30 November 20X9 is 78 days.
Inventory turnover is five times.
Yearend payables are £320,000
Credit purchases for the year ended 30 November 20X9 £2 million
Cost of sales was £1.6 million

Calculate Bennet’s trade receivables collection period as at 30 November 20X9.

Question 7

Identify whether the following statements related to diluted earnings per share are True or False:

	True	False
Acts as a forecast of the future earnings per share figure
Highlights that earnings per share could have been higher

Question 8

According to the IFRS 5 Non-Current Assets Held for Sale and Discontinued Services Operations which of the following relates to the criteria an asset held for sale?

1. 
   The asset must be available for immediate sale
   
2. 
   The agent argues the price set is unreasonable
   
3. 
   The sale must be expected to be completed within the three months from classification
   
4. 
   The item must be a significant part of operations or geographical area