[iyamu]

This is why i do not post the work book answers to avoid overload inforamtion.

My question is , the answers are very different from my mine as you can see from the lenghty workings
I simply adopted your video steps and Kaplan but it appears the results are not same.

The profit i got was £230 while the book got over £405.625

[iyamu]

Profit equation = Total income – total expendition

Thank you sir , i forget to account for the fixed cost
£100*23-£800= £1500.

Breakeven in units = £800/£100= 8 units meaning the business must sell minimum of 8 units per month to break even.

[iyamu]

The following table shows the revenue and expenses of DYI Stores Ltd, a high street chain selling DYI goods.

Revenue expense Actual Profit Budgeted Profit
2013 £ 316,449,668.60 £ 313,395,191.59 ? £ 3,046,000.00

2014 £ 354,423,628.83 £ 344,734,710.74 ? £ 9,561,000.00

2016 Budgeted Revenue Budgeted Expense

? ?

(a) The question what will be the actial profit for 2013 & 2014?

(b) What will be the likely profit for 2016?

Sir,

I can easily calculate the actual profit for both 2013 and 2014

[iyamu]

Thank you very much sir. Very explicit

[iyamu]

Yes thank sir . I got how you calculated the totals but the contribution per pair of shoes for the Fulfil customer order:

200 Road 80 33.50 6,700
200 Spikes 40 21·50 4,300
200 Trail 60 28·00 5,600

how was the contribution for each product calculated ? sales per each product varies so also the variable costs.

how was 33.50 for Road calculated

[iyamu]

genius999, you are sure its not hard? could you help pls with the tips?

[iyamu]

My sincere apology sir , I mistook it for the forum platform .

[iyamu]

Initial investment = 40000
Scrap value = 5000
Total = 45000
Average = 45000/2 = $22,500
I hope this helps …

[iyamu]

sorry i meant 1460000+ 620000 = 12% CE

840,000/ 12% = CE
CE = $7,000,000

ROI = 1460000/ 7,000,000 * 100% = 20.8%

Will this be correct sir?

[iyamu]

Yes RI = profit less notional interest * investment.

ROI = controllable profit/CE * 100%.

620,000 = 1460000 * 12% ( CE)
will this equation be correct to get CE(capital employed)?

[iyamu]

Thank you sir, Though i now got it , but in TI – 30 ECO RS Calculator. There is no ( ^ ) function to get the 3 root of 0.343.

[iyamu]

Unfortunately after following the order still can not get 0.7.

i did click 3 then 2nd (green like button) then ^ , then click on 0.343 and finally clicked on enter.

[iyamu]

oh ok thank you very much sir. Got it clearly now

[iyamu]

In particular, i emphasis on the sales disposal . I understood the 250k has no effect. The profits of 10k goes into the profit/loss account so why are we adding the 50k to the revised net asset?

[iyamu]

Thank you sir

[iyamu]

Oh thanks sir .

[iyamu]

Sir the 1 batch was = 50 units

How come was could 28 batches makes = 1,400 units ? Here was only my confusion. All others are ok.

Thanks

[iyamu]

Thanks sir

[iyamu]

Thank you so much sir . I do really appreciate your details.

[iyamu]

Thank you sir. With your narrative , the $120k is effectively not related to your calculation exactly same with Kaplan. What this means is that we are looking at the incremental cash flow . I was able go through again the whole text and ignored the kit.

Kaplan in its text said we should take the difference of revenue generated and any added costs by ignoring the joint cost as sunk costs . Sorry, technically is not correct based your explanation. It was a joint cost to produce to Product X.

You taught me F2 on processing costs so I have no problems at all.

Thank you very much sir. I hope to bring you good news on PM results and look further to APM!

[iyamu]

Thank you sir. , please , in kaplan auditor’s respond to asset vein overvalued and profit overstated due the depreciation charge reduction as asset lives extension ,

it’s says discuss with directors the rationale for extending asset lives and reducing depreciation rate.

It further says the revised useful life of a sample of assets should be compare to how often the asset are replaced as this will provide assets useful life!

Please , could you interpret what this response apart from the discussion part. I don’t understand how this provide evidence of assets useful life to the revise ones.

Thank you sir .

[iyamu]

Thank you very much sir

[iyamu]

Thank you sir

[iyamu]

Sir , thank you. However, I mean substantive not substantial ( error from me) . I knew what journal is but I was confused how ISAs 330( Kaplan ) meant in the context of Auditing material journals ! Because the 3rd option talked about same thing ! I think I have to stop using Kaplan materials bcos it’s errors are becoming too much.

Once again thanks .

[iyamu]

Thanks Sir

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