How to login to NOUN Elearn Portal
You can now use you matric number to login as your username and password in a lowercase.
https://elearn.nouedu2.net/login/
Note that you are to change your passw...
COURSE CODE: ACC316
CREDIT UNIT: 3
COURSE TITLE: ANALYSIS OF FINANCIAL STATEMENT
TIME ALLOWED: 2 Hours 30 Minutes
INSTRUCTION: 1. Attempt question Number one (1) and any other three (3).
2. Question number 1 is compulsory and carries 25 marks, while the other questions carry 15 marks each.
3. Present all your points in coherent and orderly manner.
(ii) Using the financial statement below, calculate the ratios below and express what each showcases: Total assets turnover, Times interest earned, Average collection periods in days, fixed charges coverage and Profit margin on sales. 15 marks
_______________________________________________________________
Statement-1 TETE Ltd -Balance Sheet as at December 31, 2010
Assets N Liabilities N
Cash 70,000 Accounts payable 150,000
Marketable securities 30,000 Note payable to bank (8%) 200,000
Accounts receivable, net 450,000 Accruals 20,000
Inventories 350,000 Income tax payable 80,000
Total current assets 900,000 Total current liabilities 450,000
Mortgage Bonds (6%) 150,000
Gross plant and equipment 2,100,000 Debenture (7%) 400,000
Allowance for depreciation (500,000) Total liabilities 1,000,000
Net plant and equipment 1,600,000
Shareholder’s equity
Ordinary Shares 500,000
Retain earnings 1,000,000
Shareholder’s equity 1,500,000
Total assets 2,500,000 Liabilities plus equity 2,500,000
The annual sinking fund contribution is N25,000
Statement-2 TETE. Ltd –Income Statement for the year ended December 31, 2010 =======================================================
N N N N
Net Sales 5,400,000
Cost of goods sold 4,400,000
Gross Margin on sales 1,000,000
Operating expenses:
Selling 400,000
General and Administrative 130,000
Lease payment 20,000
Total operating expenses 550,000
Other revenues- Interest on Marketable Securities + royalties 3,000
Operating income plus other revenues 453,000
Less other expenses:
Interest on bank note 16,000
Interest on mortgage 9,000
Interest on debentures 28,000
Total interest 53,000
Net income before taxes 400,000
Income taxes (at 50%) 200,000
Net after tax income available to ordinary shareholders (net profit) 200,000
Dividends 30,000
Increase in retained earnings 170,000
(25 marks)
2. Explain the usefulness of opportunity cost in decision making in business. (15 marks)
3 Why is long range profit goal setting necessary for management of an organization? (15 marks)
4. Explain activity ratio of an enterprise and identify different types of activity ratios used in an organization. (15 marks)
5. State any five purposes the International Accounting Standard Board (IASB) and explain how they assist in the analysis of financial statements. (15 marks)
6. What are accounting policies? Highlight five of significant accounting policies that have to be in financial statements of a company (15 marks)
Select NOUN Past Questions & Answers by Faculties
National Open University of Nigeria (NOUN) Faculty of Sciences Past Questions and Answers.
National Open University of Nigeria (NOUN) Faculty of Education Past Questions and Answers.
National Open University of Nigeria (NOUN) Faculty of Arts and Social Sciences Past Questions and Answers.
National Open University of Nigeria (NOUN) Faculty of Law Past Questions and Answers.
National Open University of Nigeria (NOUN) Faculty of Management Sciences Past Questions and Answers.
National Open University of Nigeria (NOUN) Faculty of Health Sciences Past Questions and Answers.
National Open University of Nigeria (NOUN) Faculty of Agricultural Sciences Past Questions and Answers.
Select Project Topics & Materials by Categories
Universities, Polytechnic's and Colleges of Education Accounting Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Biology Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Business Education Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Chemistry Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Computer Science Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Criminology & Security Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Economics Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Education Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education English/Linguistic Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Entrepreneurship Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Environmental Science Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Law Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Marketing Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Physics Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Political Science Project Topics and Materials.
Universities, Polytechnic's and Colleges of Education Public Administration Project Topics and Materials.
You can now use you matric number to login as your username and password in a lowercase.
https://elearn.nouedu2.net/login/
Note that you are to change your passw...
The Flemish Ministry of Education and Training awards scholarships to highly talented international students who want to study a master's programme at a Flemish university, a school of arts or ...
Universities of the Coimbra Group offer short-term visits (generally 1 to maximum 3 months) to young African researchers from higher education institutions from Sub-Saharan Africa. The main aim of ...