关于本题的两个小疑问解答

此题有两个问题：（1）存货的impairment为何是进COGS？不是应该是资产减值损失么？；（2）operating profit的增加额为何与retained earning增加额完全一样？不考虑所得税的因素么？

Interpretation fin statements 2022-06-07 23:37:28

问题来源：

PART Ⅴ Interpretation of financial statement s(3)

This scenario relates to three requirements.

Bun Co is a bakery which also owns two shops/cafes. Over the last two years, the company has experienced

declining profitability due to increased competition and so the directors wish to investigate if this is a sector-wide problem. Consequently, they have acquired equivalent ratios for the sector, some of which have been reproduced below.

Sector averages for the year ended 30 June 20X7:

Return on capital employed	18.6%
Operating profit margin	8.6%
Net asset turnover	2.01
Inventory holding period	4 days
Debt to equity	80%

The following information has been extracted from the draft financial statements of bun

financial statements of Bun Co for the year ended 31 December 20X7:

Statement of profit or loss for the year ended 31 December 20X7:

	$’000
Revenue	100,800
Cost of sales	-70,000
Gross profit	30,800
Operating expenses	-17,640
Profit from operations	13,160

Statement of financial position as at 31 December 20X7:

	$’000
Non-current assets	55,000
Inventory	3,960
Equity:
Equity shares of $1 each	17,000
Revaluation surplus	5,400
Retained earnings	10,480
	32,880
Non-current liabilities: 10% bank loan	14,400

Other relevant information to Bun Co:

(1) In 20X6, Bun Co acquired a popular brand name. At 31 December 20X7, the brand represented 20% of non-current assets. The remaining 80% of non-current assets comprises of the property from which Bun Co operates its bakery and shops. This property is owned by Bun Co and has no directly associated finance. The property was revalued in 20X4.

Other relevant information to Bun Co:

(2) In the year ended 31 December 20X7, Bun Co began offering discounted meal deals to customers. Bun Co hoped this strategy would help to reduce perishable inventory and reduce inventory holding periods.

(3) In January 20X8, it was decided to discount some slow-moving seasonal inventory which had a selling price of $1.5m. Under normal circumstances, these products have a gross profit margin of 20%. The inventory was sold in February 20X8 for 50% of what it had cost Bun Co to produce. The financial statements for the year ended 31 December 20X7 were authorized for issue on 15 March 20X8.

Required

(a) Adjust for the information in note (3) and calculate the 20X7 sector average equivalent ratios for Bun Co. (7 marks)

(b) Assess the financial performance and position of Bun Co for the year ended 31 December 20X7 in comparison with the sector average ratios. (10 marks)

A	B	C
(a) Adjustment to closing inventory
Adjusting events : Inventory sold at the less price than the cost
Error		$m
Closing inventory	1.5-1.5 ×20%	1.2
Cost of sales		1.2

A	B	C
Correct
Closing inventory	1.2 × 50%	0.6
Cost of sales		0.6

JE to adjust
Dr Cost of sales	1.2-0.6	0.6
Cr Closing inventory		0.6

A	B	C
The impact on financial statements		$m
Cost of sales	70+0.6	70.6
Operating profit	13.16-0.6	12.56
Inventory	3.96-0.6	3.36
Equity-retained earnings	32.88-0.6	32.28

A	B	C	D
		Buns Co	Sector average
ROCE	12.56/(32,28+14.4)	26.90%	18.60%
Operating profit margin	12.56/100.8	12.50%	8.60%
Inventory holding period	(3.36/70.6)*365	17.4 days	4 days
Debt to equity	(14.4/32.28)	44.60%	80%
Asset turnover	(100.8/46.68)	2.16	2.01

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李老师

2022-06-08 17:52:28 741人浏览

哈喽！努力学习的小天使：

（1）正常情况下，在有impairment时进此项目，没有的话，也可以考虑进COGS项目；

（2）题中未提及所得税，暂不用考虑。

每个努力学习的小天使都会有收获的，加油！

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