Question 1 (40 marks) The Income And Expenditure Account of Woodbine Country Club for the year...

 

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Question 1 (40 marks) The Income And Expenditure Account of Woodbine Country Club for the year ended December 31, 2021 and the Balance Sheet as at December 31, 2021 are as follows: Bar Sales Less: Cost Of Sales Opening Stock Add: Purchases Less: Closing Stock Cost Of Sales Gross Profit Bar Gross Profit Subscription Fees Donation Received. Woodbine Country Club Bar Profit And Loss Account For The Year Ended December 31, 2021 (S) Less: Operating Expenses Administration Expenses Professional Staff Costs Surplus Woodbine Country Club Income And Expenditure Account For The Year Ended December 31, 2021 Advertising And Promotion Expenses General Expenses Depreciation - Equipment 81,500 203,700 (S) 285.200 (47,600) (S) 294,400 1,015,000 142,100 92,275 895,000 127,600 74,375 43,550 (S) 532,000 237,600 294,400 ($) 1,451,500 1,232,800 218,700 Fixed Assets Equipment At Cost Less: Accumulated Depreciation ($130,650+ $43,550) Current Assets Bar Stock Cash At Bank Less: Current Liabilities Creditors For Bar Supplies Working Capital Financed By: Accumulated Fund Balance As At January 1, 2021 Add: Surplus For The Year Required: (a) Compute the following seven ratios Bar gross profit ratio (b) Woodbine Country Club Balance Sheet As At December 31, 2021 (i) (1) (iii) (iv) (V) (vi) (vii) (S) 47,600 44.600 ($) 871,000 (174,200) 92,200 (35,000) (S) Surplus on income ratio Expenses on income ratio Surplus on fund employed Current ratio Quick ratio Average collection period received from creditors in term of days 696.800 57,200 754,000 535,300 218,700 754,000 (21 marks) Based on above ratios, you are required to comment on performance. In recent years, the numbers of members joining the club are gradually reduced. What would be your suggestions to improve this situation? (19 marks) Question 1 (40 marks) The Income And Expenditure Account of Woodbine Country Club for the year ended December 31, 2021 and the Balance Sheet as at December 31, 2021 are as follows: Bar Sales Less: Cost Of Sales Opening Stock Add: Purchases Less: Closing Stock Cost Of Sales Gross Profit Bar Gross Profit Subscription Fees Donation Received. Woodbine Country Club Bar Profit And Loss Account For The Year Ended December 31, 2021 (S) Less: Operating Expenses Administration Expenses Professional Staff Costs Surplus Woodbine Country Club Income And Expenditure Account For The Year Ended December 31, 2021 Advertising And Promotion Expenses General Expenses Depreciation - Equipment 81,500 203,700 (S) 285.200 (47,600) (S) 294,400 1,015,000 142,100 92,275 895,000 127,600 74,375 43,550 (S) 532,000 237,600 294,400 ($) 1,451,500 1,232,800 218,700 Fixed Assets Equipment At Cost Less: Accumulated Depreciation ($130,650+ $43,550) Current Assets Bar Stock Cash At Bank Less: Current Liabilities Creditors For Bar Supplies Working Capital Financed By: Accumulated Fund Balance As At January 1, 2021 Add: Surplus For The Year Required: (a) Compute the following seven ratios Bar gross profit ratio (b) Woodbine Country Club Balance Sheet As At December 31, 2021 (i) (1) (iii) (iv) (V) (vi) (vii) (S) 47,600 44.600 ($) 871,000 (174,200) 92,200 (35,000) (S) Surplus on income ratio Expenses on income ratio Surplus on fund employed Current ratio Quick ratio Average collection period received from creditors in term of days 696.800 57,200 754,000 535,300 218,700 754,000 (21 marks) Based on above ratios, you are required to comment on performance. In recent years, the numbers of members joining the club are gradually reduced. What would be your suggestions to improve this situation? (19 marks)

Answer rating: 100% (QA)

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