Please be as detailed as possible, it is a crucial assignment

Quest ionone:

 

A company has the following proforma a cost sheet data:

 

Cost (per unit) K

• Raw Materials - 25.0
• Direct Labor - 19.5
• Overheads - 39.0
• Total Cost/Unit 83.5

Profit 19.5

Selling Price64.0

Additional Information:

Average raw materials in stock: One Month

Average materials in process :Half a Month

Credit allowed by suppliers :One Month

Credit allowed to debtors: Two-Months

Time lag IN payment of wages: One and Half Weeks

Overheads: One month.

One-Fourth of sales arson cash basis

Cashbalanceisexpectedtobe:K120,000

Required:

Prepareastatementshowingtheworkingcapitalneededtofinancealevelofactivityof 70,000unitsof output.

 

Assumethatproductioniscarriedoutevenlyandthroughouttheyearandoverheads and wages accrue similarly. (20 marks)

 

Question Two:

 

IdentifyandexplainwhatareconsideredassignificantrolesofaChiefFinancialOfficer and explain the main characteristics of this position. (20 marks)

 

Question Three:

2. When preparing a statement of Cash flow ,transactions such a depreciation expense, amortization of debentures discount and similar internal items are neither sources nor applications of financial resources, yet they are treated as adjustments to net profit .Explain why thesis so. (5 marks)
4. Explain and identify the features of preference shares (10 5arks)

Identify the merits and demerits of preference shares (5 marks)

Answer rating: 100% (QA)

Question One Working Capital Analysis To determine the working capital needed to finance a level of activity of 70000 units of output we need to calculate the components of working capital considering ... View the full answer