Financial Reporting Coursework 3

Coursework Question 14


A company starts the day with £50000 cash in the bank, £6380 worth of trade creditors (suppliers who have not been paid) and £1880 worth of trade debtors (customers who have not paid). Without doing any trading over the day it reduces its trade creditors to £1860 and its trade debtors to £370. How much cash is in the bank at the end of the day?



Answer: £



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Coursework Question 15


A machine costing £47000 will be worth £2000 in 10 years time when it is replaced. Using the straight line method how much is charged to the accounts each year for depreciation



Answer: £



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Coursework Question 16


A machine costing £41000 will be worth £7000 in 7 years time when it is replaced. Using the reducing balance method how much is charged to the accounts for depreciation in the first year



Answer: £



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Coursework Question 17


A machine costing £47000 will be worth £2000 in 5 years time when it is replaced. Using the reducing balance method what will the net book value be after 4 years



Answer: £



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Coursework Question 18


Apollo plc has revenues of £15.4m, raw material costs of £2.4m, salaries of £4.6m and staff entertaining costs of £145k.
If has also just bought some new machinery for £13.7m, which it expects to have a working life of 8 years but which has a capital allowance for tax purposes of 25% per year for 4 years.
To buy the machinery Omega used £2m of retained earnings and borrowed £11.7m at an interest rate of 4.3%.
How much corporation tax is payable?



Answer: £



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Coursework Question 19


Vulcan plc has an accounting profit before tax of £8.7m. It has entertaining expenses of £190k. It has fixed assets which have been depreciated by £700k and have a capital allowance of £850k.
It has received dividends of £152k.
Calculate the corporation tax payable.



Answer: £