Log in
HomeStudy Guides420,000CA160,000

RTA 927 Study Guide - Final Guide: Sales Operations, La Senza, Sound Recording And Reproduction

280 views7 pages
emeraldcod582
14 Jan 2017
School
Ryerson University
Department
Media Studies
Course
RTA 927
Professor
Steven Ehrlick

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Income statement the expenses associated with producing and marketing your art are listed. Some of the items that go into the. The cost of materials and supplies, labor costs including your time as well, the costs of going to a festival or art fair, Marketing costs, cost of goods purchased for resale. Rbp) - deductions may include: packing deduction, net sales (free goods reduction), sales discounts, reserves. Premiums: special deals between other resalers (la senza, gas. Stations); mid-price and budget (the double): records sold cheaper (one third and half) and reduced royalties. Gross profit: gross profit is calculated by subtracting your. Basically it tells you how much profit you made before deducting fixed expenses aka general, selling and. , we will release it within 6 months of delivery. Sideman clauses guest artist on another artist album: no solo or step out featured performance, record company gets credit on the.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers

Related Documents

RTA 927
Final Exam
Study Guide
RTA 927 Study Guide - Quiz Guide: Sound Recording And Reproduction, Derivative Work
emeraldcod582
MGTA02H3 Lecture Notes - Leveraged Buyout, Accounts Payable, Quick Ratio
olivemouse838
MGTA02H3 Chapter Notes - Chapter 4: Quick Ratio, Accounts Payable, Leveraged Buyout
erincheetah56

Related Questions

Part B

You are a senior internal auditor at BHEL Ltd., a machine toolmanufacturer. A draft set of financial statements for the year havebeen prepared by management, and it has fallen to you to examinethe figures for reasonableness and at the same time identifysignificant audit areas which may require further work even thoughyour systems audit during the year has proved satisfactory.

You are aware of the fact that the company is at presentcontemplating an issue of $2,000,000 15% loan stock (redeemable inthe year 20X0) in order to assist the remodeling of its presentproduction facilities. The majority of the directors are in favourof making the issue but a few are reluctant to do so in view of thefact that the machine tools industry is subject to wide-rangingfluctuations in sales and profits. Abbreviated financial statementsfor BHEL Ltd. together with typical ratios for firms in the machinetool industry are as follows.

INCOME STATEMENTS FOR THE YEARS ENDED 31 DECEMBER

20X2 20X1

Particular

$'000

$'000

$'000

$'000

Sales

23,500

20,500

Cost of goods sold

16,000

14,000

Gross profit

7,500

6,500

Selling expenses

2,700

1,900

Administration expenses

2,300

2,600

5,000

4500

Profit from operations

2,500

2000

Interest paid

500

300

Net profit before taxation

2,000

1,700

Taxation

1,200

1,020

Net profit after taxation

800

680

Dividends paid

525

280

Profit for the year retained

275

400

Retained profit brought forward

6,090

5,690

Retained profit carried forward

6,365

6,090

STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER

Total assets

Tangible non-current assets (net)

6,315

5,600

Other non-current assets

800

750

7,115

6,350

Current assets

Inventory

5,100

3,200

Receivables

2,900

1,900

Prepayments

100

100

Cash and bank

600

590

8,700

5,790

15,815

12,140

Equity and liabilities

350

Called up share capital Ordinary 50p shares authorised, issuedand fully paid

350

350

Retained profits

6,365

6,090

6,715

6,440

8% loan stock (20Y0 – 20Y3)

5,500

3,300

Current liabilities

3,600

2,400

15,815

12,140

1. (Inventory valuation at 31 December 20X0 was $2,500,000)

2. (Receivables' balance at 31 December 20X0 totaled$1,700,000)

Typical industrial averages for 20X2 and 20X1 are as follows

Gross profit on sales

34%

Acid test ratio

1.2:1

Net profit before tax on sales

11%

Average age of receivables

30 days

Net profit before tax on net assets employed

19.5%

Average age of inventory

73 days

Working capital ratio

2.5:1

Interest cover

8 times

Required

1. Review and communicate parameters forvariances in financial outcomes of the BHEL compared to year 20X1of the financial statement and explains areas which may cause yousome concern, describe the main matters (consider risk) which youwould need to investigate for future decision making and riskminimisation. Write your response in 400-500 words.

For both problems below, round your final answers to the level of output to the nearest unit since it is not possible to produce a fraction of a unit.

1) The market for Commodity A operates in a perfectly competitive market and the demand curve is defined by:

P = 100 - 0.2QD

The supply curve is defined as:

P = 2 + 0.3QS

Solve for the equilibrium levels of price and quantity that the market will bear.

You are the manager of your firm and you are trying to decide how much output you will be producing. You have total fixed costs of $10 and total variable costs of:

TVC = Q + 0.5Q2

How much of the total market quantity should your firm produce to maximize its profit? How can you confirm that this level is really a maximum and not a minimum?

2) Assume that you work for the same firm above. Your firm has identified a developing country as an area of expansion. There are no current producers of Commodity A in this developing country so your firm will be the sole producer of this product. Assume that the demand curve for Commodity A in this developing economy is the same as the one described above. If your objective is to maximize profit, what will be the level of output you will produce, and what will be the market price for Commodity A. Compare your results from problem 1) above. What accounts for the difference? Who suffers and who benefits from these differences?

Hands-On Project 10-12

IMPROVING DECISION MAKING: USING SPREADSHEET SOFTWARE TO ANALYZEA DOT- COM BUSINESS

Software skills: Spreadsheet downloading, formatting, andformulas

Business skills: Financial statement analysis 10- 12

Pick one e- commerce company on the Internet— for example,Ashford, Buy. com, Yahoo, or Priceline. Study the Web pages thatdescribe the company and explain its purpose and structure. Use theWeb to find articles that comment on the company. Then visit theSecurities and Exchange Commission’s Web site at www. sec.gov to access the company’s 10- K ( annual report) formshowing income statements and balance sheets. Select only thesections of the 10- K form containing the desired portions offinancial statements that you need to examine, and download theminto your spreadsheet. Instructions below provide more detailedinstructions on how to download this 10- K data into a spreadsheetand information on financial statements. Create simplifiedspreadsheets of the company’s balance sheets and income statementsfor the past three years.

• Is the company a dot- com success, borderline business, orfailure? What information provides the basis of your decision? Why?When answering these questions, pay special attention to thecompany’s three- year trends in revenues, costs of sales, grossmargins, operating expenses, and net margins.

• Prepare a PowerPoint overhead presentation (with a minimum offive slides), including appropriate spreadsheets or charts, andpresent your work to your professor and classmates. An examplePowerPoint slide presentation is attached for your review in thislearning module folder in Blackboard.

As needed: Students can find material on understanding financialstatements on financial Web sites such as Ameritrade(www.ameritrade.com) or the Small Business Knowledge Basehttp://www.bizmove.com/finance/m3b2.htm.

Downloading the Data into a Spreadsheet

Use the Convert Text to Columns Wizard in your spreadsheetsoftware to arrange the 10-K data you downloaded into spreadsheetcolumns and rows. From the Excel menu, select Data and then selectthe Text to Columns option. The software brings up a Wizard toconvert the imported text into spreadsheet columns. Although youcan decide to create line breaks, it may be easiest to accept thedefault settings (Fixed Width, General format) and then adjustcolumn widths after the Wizard has arranged the data in spreadsheetcolumns.

Financial Statements

Financial statements are used to evaluate the performance of abusiness and diagnose its strengths and weaknesses. The two primaryfinancial statements are income statements and balance sheets. Theincome statement, also called an operating statement or profit andloss statement, shows the income and expenses of a firm over aperiod of time, such as a year, a quarter, or a month. Gross profitis calculated by subtracting the cost of goods sold from revenues,or sales. The gross margin is calculated by dividing gross profitby revenues (or sales). Net profit (or loss) is calculated bysubtracting all other expenses, including operating expenses andincome taxes from gross profit. Operating expenses are all businesscosts (such as expenditures for sales and marketing, general andadministrative expenditures, and depreciation) other than thoseincluded in the cost of goods sold. Net margins arecalculated by dividing net profit (or loss) by revenues (orsales).

A balance sheet provides a snapshot of a company’s financialassets and liabilities on a given date, usually the close of anaccounting period. It lists what material andintangible assets the business owns and what money the businessowes either to its creditors (liabilities) or to its owners(shareholders’ equity, also known as net worth). At any given timea business’s assets equals the sum of its liabilities plus its networth. Current assets include cash, securities, accountsreceivable, or other investments that are likely to be convertedinto cash within one year. Liabilities are outstanding obligationsof the firm. Current liabilities are debts that are due within oneyear. Long-term debt consists of liabilities that are not due untilafter a year or more. If too much debt has been used to finance thefirm’s operations, problems may arise in meeting future interestpayments and repaying outstanding loans. By examining a series ofbalance sheets, one can identify and analyze trends in thefinancial strength of a business.