1 Swinburne University of Technology School of Business Question 1 The following information relates to Brutus Ltd. 31/12/200X 31/12/200Y $000 $000 Cash 112 145 Debtors 316 260 Inventory 500 580 Investments 72 100 Fixed Tangible Assets 1 600 2 200 Accumulated Depreciation (800) (965) 1 800 2 320 Trade Creditors 360 520 Loan from ABC Ltd 500 780 Paid-up Capital 500 540 Retained Profits 440 480 1 800 2 320 ==== ====2 Statement of Financial Performance for the year ended 31 Dec.200Y $000 ($ooo) $000 Sales Revenue 2 940 Cost of goods sold (1 960) Gross profit 980 Expenses Selling Expense (340) Administrative Expense (456) (796) 184 Other revenue-Interest revenue 16 Net Profit before Tax 200 Tax 60 Net profit after Tax 140 === Additional information: Dividends were paid during the year.: $100(000’S) Depreciation $165(000’s) Required: (a) From the above information, prepare a properly classified Statement of Cash Flows using either direct or indirect method. (12 marks) (b) Identify possible reasons why cash flow from operations does not equal operating profit after tax. (6marks) (12 + 6 = 18 marks)3 Question 2 Part A The following balances have been extracted from the accounts of AB Engineering Supplies Ltd at 31 December 200Y: $000 Sales 160 Gross profit 40 Stock 10 Total Operating Expenses 8 Non Current Assets 108 Tax Expense 9 Interest Expense 2 Stock 10 Debtors 8 Bank 2 Current Liabilities 10 Proprietorship 118 Required: Calculate: Net Profit Margin;(before int.&tax) Return on Assets (before int & tax) Asset Turnover; (3x 2 = 6 marks)4 Part B The following Performance Measures have been extracted from the accounts of a competitor, CD Engineering Services Ltd, for the year ended 31 December 200Y. CD Engineering Services Ltd Net profit margin 10% Return on Assets 121/2% Asset Turnover 1.25 times Required Compare your results in Part A with those given for CD Engineering Services Ltd. . Evaluate the outcomes. (6marks) (6+6 =12 marks)