Question 14 You will need to use excel to answer this question and then upload your...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 14 You will need to use excel to answer this question and then upload your file. Please ensure that you leave yourself enough time to upload your file responses. It is recommended that you upload your file as you complete the response to the question. Off Road Camping owns and controls two camping supplies businesses, Oz Camping Supplies and Glamping Australia. Both businesses are independently operated. The following information has been collected for each business: Sales revenue Cost of sales Gross profit Less other expenses Profit Cash at Bank Other Current assets Total Assets Current liabilities Total Liabilities Oz Camping Supplies Glamping Australia 1,780,000 1,690,000 962,000 775,000 818,000 915,000 230,000 225,000 588,000 690,000 400,000 550,000 345,000 650,000 2,160,000 2,075,000 495,000 1,010,000 545,000 1,175,000 1. Calculate the gross profit ratio, profit ratio, current ratio and debt to equity ratio for both companies. (2 marks) a. Comment on the performance of each business. Your comments are to include a comparison between each businesses' performance. (4 marks) b. Oz Camping Supplies and Glamping Australia both need to upgrade computer software programs for handling online orders at a cost of $350,000. Should this be financed by borrowing from a bank or using internal funds? Analyse the effect of the different options and make a recommendation for each business. (4 marks) Question 14 You will need to use excel to answer this question and then upload your file. Please ensure that you leave yourself enough time to upload your file responses. It is recommended that you upload your file as you complete the response to the question. Off Road Camping owns and controls two camping supplies businesses, Oz Camping Supplies and Glamping Australia. Both businesses are independently operated. The following information has been collected for each business: Sales revenue Cost of sales Gross profit Less other expenses Profit Cash at Bank Other Current assets Total Assets Current liabilities Total Liabilities Oz Camping Supplies Glamping Australia 1,780,000 1,690,000 962,000 775,000 818,000 915,000 230,000 225,000 588,000 690,000 400,000 550,000 345,000 650,000 2,160,000 2,075,000 495,000 1,010,000 545,000 1,175,000 1. Calculate the gross profit ratio, profit ratio, current ratio and debt to equity ratio for both companies. (2 marks) a. Comment on the performance of each business. Your comments are to include a comparison between each businesses' performance. (4 marks) b. Oz Camping Supplies and Glamping Australia both need to upgrade computer software programs for handling online orders at a cost of $350,000. Should this be financed by borrowing from a bank or using internal funds? Analyse the effect of the different options and make a recommendation for each business. (4 marks)
Expert Answer:
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these accounting questions
-
This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Create a Stored Procedure: Stored procedures allow you to make changes to the database structure and manage performance without needing to rewrite applications or deploy application updates. In this...
-
HP has been engaged in environmental matters for some years, how might this help them to be more effective at it?
-
Evaluate the integrals in Problem x? dx 2.
-
The Cooper Furniture Company of Potomac, Maryland, assembles two types of chairs (Recliners and Rockers). Separate assembly lines are used for each type of chair. Classify each cost item (AI) as...
-
Atlanta Company is preparing its manufacturing overhead budget for 2012. Relevant data consist of the following. Units to be produced (by quarters): 10,000, 12,000, 14,000, 16,000. Direct labor: Time...
-
Direct Labor Budgeted $14,200, Actual $14,200, Indirect Labor Budgeted 5,800, Actual 5,400, Utilities Budgeted 1,900, Actual 2,200, Rent Budgeted 3500, Actual 3500, Marketing Budgeted 150, Actual...
-
If C = {cos a, cos 2a, cos 3a} and S= {sin a, sin 2a, sin 3a} are equal sets then number of values a in (0, 27]is. Backspace 7 89 4 5 6 1 23
-
If you were the CEO of your own company how would you involve your Vice President of Human Resources (VPHR) in strategic initiatives? What steps would you take to ensure that the VPHR is involved in...
-
A 225-kg crate is pushed horizontally with a force of 710 N. If the coefficient of friction is 0.20, calculate the acceleration of the crate.
-
Cash collected from customers during the year ended December 31, 2019 amounted to $314,000, and accounts receivable decreased by $42,000 during the year. How much were sales on account for the year...
-
There are six independent questions below. What can you say about the dual if you already know: (answer for each of the following considered individually) a) a feasible solution to the primal exists?...
-
Assume that four men and four women are to sit in a row of eight chairs. In how many ways can these people sit if all men must sit together and all the women must sit together? Use the fundamental...
-
Handy Distributors Inc. (HDI) includes a wholesale division and a retail division. Relevant information pertaining to its retail division (RET) is as follows: The net assets of RET were acquired by...
-
Audrey purchases a riding lawnmower using a 2-year, no-interest deferred payment plan at Lawn Depot for x dollars. There was a down payment of d dollars and a monthly payment of m dollars. Express...
-
You have the chance to purchase an oil well. Your best estimate is that the oil well's net royalty income will average $25,000 per year for five years. There will be no residual value at that time....
-
Total assets on a balance sheet prepared on any date must agree with which of the following? a. The sum of total liabilities and net income as shown on the income statement b. The sum of total...
-
The comparative financial statements prepared at December 31 for Tiger Audio showed the following summarized data: Required: 1. Complete the two final columns shown beside each item in Tiger Audios...
-
Cumulative Normal distribution \(\Phi_{(\mu, \sigma)}\) and probability (a) \(X \sim \phi_{(0,1)}\); what is \(P(X \leq 1.43)\) ? (b) \(X \sim \phi_{(0,1)}\); what is \(P(X>1.43)\) ? (c) \(X \sim...
-
Inverse cumulative Normal distribution \(z\) (a) Find \(z_{0.05}\). (b) Find \(z_{0.95}\). (c) Let \(X \sim \phi_{(2,1)}\). Find \(a\) such that \(P(X \leq a)=0.05\). (d) Let \(X \sim \phi_{(2,1)}\)....
-
The Normal approximation (a) A discrete stochastic variable \(X\) has expected value \(\mu_{X}=3\) and \(\sigma_{X}=1.2\). Use the Normal approximation to find \(P(X \leq 4)\). (b) A continuous...
Study smarter with the SolutionInn App