SECTION B (70marks) Alice Ltd The following trial balance was extracted from the books of Alice Ltd, a wine merchant, at the close of business on 31 December 2020 Trial Balance Capital Purchases Sales Revenue Trade payable Trade receivable Discount received Discount allowed

C4052QA Financial Accounting – APR23INTAKE

Assessment Component: Weighting:
Word count: Submission:

INSTRUCTIONS

Coursework
This Coursework contributes 100% to the Overall Module Mark 1500 words Max
Students to submit to Turnitin via module Weblearn

This coursework has three sections questions.

1. Answer all question 2. Showallworkingout.

3. You must show all working out. You may use Excel, but you must show the formula for the excel calculations

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AC4052QA Financial Accounting – APR23 INTAKE Assignment Brief

Academic Integrity and Plagiarism

Academic integrity requires honesty in your studies. You should not present another person’s sentences or ideas as your own work. You should clearly identify quotations through the use of quotationmarksandreferencestothesources.Failuretoadhereto theseacademicstandardsmaylead to allegations of academic misconduct, which will be investigated by the Academic Integrity team at QA.

Academic misconduct covers a variety of practices, such as:

• Plagiarism: copying another person’s ideas or words and presenting them as your own work, without the use of quotation marks and/or references.
• Self-plagiarism: reproducing parts of one of your assignments in another piece of work.
• Inventing, altering or falsifying the results of experiments or research.
• Commissioning another person to complete an assessment.
• Collaborating with others in the production of a piece of assessed work which is presented as

  entirely your own work.

• Cheating in an exam (e.g. by taking revision notes into the exam room).
• Ghosting ( e.g you buy a piece of work )

  For full details of academic misconduct and how allegations are investigated, see the relevant section of the University’s academic regulations: https://student.londonmet.ac.uk/your- studies/student-administration/rules-and-regulations/academic-misconduct/

2

AC4052QA Financial Accounting – APR23 INTAKE Assignment Brief

SECTION A (30marks)
This assignment requires each student to work on the published financial statements of ASOS PLC

for two years from 2020 to 2021. A summary of some of the ratios is provided below.

Ratios

Long-term Financing Gearing (3marks)

Liquidity
Current Ratio (3marks) Quick Ratio (3marks)

Profitability
Return on Capital employed (3marks) Asset Turnover (3marks)
Net Profit Margin (3marks)

Working capital Inventory days (3marks) Receivable days (3marks) Payable days (3marks)

You are required to:

Year 2021

50%

1.56 0.75

9.20% 1.89times 4.90%

138days 5days 164days

Year 2020

50%

1.25 0.6

9.30% 2.01times 4.60%

113days 7days 164days

Given the ratios provided above, write a brief report on the performance of ASOS over the financial periods 2020 to 2021. Use any other information relevant to ASOS PLC for your comments. Information can be accessed from the annual report and accounts and any other source of evidence that you believe helps to explain the company’s performance and position. (Note the report must follow the criteria provided below)

Introduction

Marking criteria for section A:

Explanatory comments on the assessment criteria
Assessment criteria:
(Guidelines – suggested –under FOUR MAIN HEADINGS)

Brief backgroundofAsos

Maximum marks for each section Recommended marks

3 marks

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AC4052QA Financial Accounting – APR23 INTAKE Assignment Brief

Question 2 (58 marks)

SECTION B (70marks)

Alice Ltd
The following trial balance was extracted from the books of Alice Ltd, a wine merchant, at the close of business on 31 December 2020

Trial Balance

Capital
Purchases
Sales Revenue
Trade payable
Trade receivable
Discount received
Discount allowed
Carriage outwards
Drawings
Rent & Rates
Heating and Lighting
Salaries and wages
Cash in hand
Bank
Inventory 1/1/2020
Delivery van
Motor running cost
Shop fittings at cost
Accumulated depreciation, Delivery Van ,1/1/2020 Accumulated depreciation, shop fittings ,1/1/2020

20,990 100,000

170,000 4,470

500 920

850 15,000 9,300 4,500 36,000 510

1,200 4,950

9,000 630 6,500

202,160

14,000

3,500 1,500

202,160

Additional Information

1. Inventory at 31 December 2020 was £3,400
2. Alice took out spare parts costing £500 for the repair of his private car. No

   payment was made for these goods

3. Rent prepaid at 31 December 2020 was £1,200
4. Motor running expenses owing at 31 December 2020 was £90
5. Provide for depreciation at 31 Dec 2020 as follows: Delivery Van 25% on the

   reducing balance basis and Shop fittings 20% on the straight-line basis

Required:
Draw up the statement of profit or loss for the year ended 31 December2020 Draw up the statement of financial position as at 31 December 2020

4

AC4052QA Financial Accounting – APR23 INTAKE Assignment Brief

Question3 (12Marks)
Diana Ltd, a new business, starts trading in sports shoes on 1 st January 2021 and expects to make

the following transactions for the 6 months ending 30th June2021:

1. (i)  Sales are expected to be 450 units (sports shoes) per month for the 4months from January to April then 600 units per month from May to June.
2. (ii)  The selling price will be £50 per unit.
3. (iii)  All sales will be cash sales with cash received in the same month the sale takes place.
4. (iv)  Payment for Purchases of inventory (sports shoes) will take place on the month after receiving the inventory. Each unit of inventory will cost £35.
5. (v)  Wages are expected to be £1000 per month and will be paid in the month in which they are incurred.
6. (vi)  Rent will be £2000 per month to be paid quarterly in advance (i.e., the rent payment for January, February and March 2021 will be made on 1st January 2021).
7. (vii)  General overheads are expected to cost £1000 per month and will be paid in the month in which they are incurred.
8. (viii)  Bought a laptop for the business in April for £1,500

Required

a) Prepare a cash budget for the 6 months from January to June 2021. Show the cash receipts and cash payments the business expects to have each month and the cash balance at the end of each month. (7marks)

b) Prepare a profit budget for the 6 months ending 30th June 2021. (5marks) .