ANNUAL REPORT

ACG 27 - Financial Accounting 2

Case Study for Annual Report Assignment

Study Period 2 - Open Universities Australia, 2012

[Name of Instructor]ACG 27 - Financial Accounting 2

Case Study for Annual Report Assignment

Study Period 2 - Open Universities Australia, 2012

Statement of Comprehensive Income (In Dollars)

Revenue

 

Sales revenue

86,489,900.00

Services revenue

13,340,000.00

Other revenues/income

255,550.00

Total Revenue

100,085,450.00

Cost of Sales

63,090,000.00

Total Cost of Sales

63,090,000.00

Gross Profit

36,995,450.00

Other expenses

22,873,280.00

Operating Income

14,122,170.00

Paid to tram diver for settlement of case

50,000.00

Income before Interest and Tax

14,072,170.00

Interest expense

245,000.00

Income before Tax

13,827,170.00

Income Tax Expense

4,148,151.00

Net Income

9,679,019.00

Statement of Changes In Equity

Retained earnings (1 July 2011)

4,238,400.00

Interim Dividend

64,000.00

Net income 9,679,019.00

General Reserves

150,000

Retained earnings (30 June 2012)

13,703,419.00

Statement of Financial Position (In Dollars)

ASSETS

 

Current Assets

 

Cash at bank

2,670,000.00

Accounts receivable

9,670,700.00

Allowance for doubtful debts

890,000.00

Net Accounts Receivables

8,780,700.00

Inventory (at lower of cost & net realizable value)

15,560,000.00

long service leave provision

82,500.00

Prepaid Indemnity Insurance

660,000.00

Total Current Assets

27,753,200.00

Fixed Assets

 

Manufacturing/ Assembly Equipment (at cost net of depreciation)

13,540,000.00

Land (at cost)

4,970,000.00

Buildings (at cost net of depreciation)

10,530,000.00

Furniture and Office Equipment (at cost net of Depreciation)

578,570.00

Goodwill (at cost - net of impairment)

455,000.00

Total Fixed Assets

30,073,570.00

Total Assets

57,826,770.00

Equity And Liability

 

Current Liability

 

Unearned revenue

768,000.00

Accounts payable

10,480,000.00

Contingent Liabilities

800,000.00

Provisions

2997000

Tax Payable

4,148,151.00

Total Current Liability

19,193,151.00

Non Current Liability

 

Loan (Big Bank)

6,510,000.00

Total Noncurrent liability

6,510,000.00

Total Liabilities

25,703,151.00

Shareholder's Equity

 

Share capital

14,330,000.00

Retained earnings (30 June 2012)

13,703,419.00

General Reserve

4,090,200.00

Total Shareholder's Equity

32,123,619.00

Total Liabilities and Shareholder's Equity

57,826,770.00

Notes of the financial Statements

Income Statement (AASB 101)

Cost of Sales

The amount of sales return $ 1,050,400 is deducted from the figure of coat of sales.

Other expenses

The amount of other expenses in the income statement includes; Staff related expenses of $6,340,000 for wages, $980,000 for salaries, $920,250 for superannuation, $640,000 annual leave expense, $197,000 long service leave expense, $550,000 general operating costs, $3,115,000 for utilities costs, $660,000 paid in cash during the period (Pique, 2008) for indemnity insurance for directors. $125,000 payment to auditors (this includes $45,000 for tax consultancy services). $1,000 costs for farewell party of outgoing Chief Executive Officer, Furniture, and Office Equipment expenses - $194,000 for upkeep costs and $87,500 for depreciation expense. (Pique, 2008)

Building expenses - $287,000 for repairs and $763,000 for depreciation expense. (Kenley, 1993)Manufacturing/Assembly Equipment expenses - $64,500 for maintenance and $297,000 for depreciation expense, significantly reduced the estimated residual value of the equipment and as a result the depreciation expense for equipment was higher this period (double previous period's expense). $353,000 for doubtful debts expense, $475,500 extraordinary expense relating to an industrial accident at the company's main assembly plant in November 2011 (the company is in the business of manufacturing and assembling trains and trams used in Australia's public transport networks), $125,000 for office supplies. Net loss on the disposal of non-current assets land and share portfolio of $55,000 (Kenley, 1993)

Paid to tram diver for settlement of case

The company had manufactured crashed into traffic due to a malfunction in the tram's brake system. The company driver sued the company; the company agreed to settle out of the court ...