Scribd
Upload
236 views

Final Exam Answer Template

This document provides templates and formulas for key accounting concepts for a final exam, including: 1) A cash flow statement template with sections for operating, investing and financing cash flows along with relevant formulas. 2) Templates for indirect cash flow statement method and ratios like operating cash flow margin and return on assets. 3) Templates for calculating eco-efficiency, payback period, net present value, cost-benefit analysis of options and incremental revenue vs costs.

Uploaded by

brip sel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
236 views

Final Exam Answer Template

This document provides templates and formulas for key accounting concepts for a final exam, including: 1) A cash flow statement template with sections for operating, investing and financing cash flows along with relevant formulas. 2) Templates for indirect cash flow statement method and ratios like operating cash flow margin and return on assets. 3) Templates for calculating eco-efficiency, payback period, net present value, cost-benefit analysis of options and incremental revenue vs costs.

Uploaded by

brip sel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

ACCT1101 – Final Exam Answer Template

CASHFLOW STATEMENT (In good form) – Direct Method


BUSINESS NAME
CASH FLOW STATEMENT
FOR MONTH ENDED 31 DECEMBER 20XX
Cash flows from operating activities $ $
Cash inflows:
Receipts from Customers XXXX
Interest Collected XXXX
Cash inflows from operating activities XXXX
Cash outflows:
Payment to suppliers XXXX
Payment to employees XXXX
Other operating payments XXXX
Interest Paid XXXX
Cash outflows from operating activities (XXXX)
Net Cash Provided by operating activities XXXX
Cash flows from investing activities
Purchased shop equipment XXXX
Net Cash Provided by investing activities (XXXX)
Cash flows from financing activities
Increase in bank loan XXXX
Withdrawal by _____ (XXXX)
Net Cash Used by financing activities XXXX
Net Increase in Cash XXXX
Cash 1st January 20XX XXXX
Cash 31st December 20XX XXXX

Formulas Required:
Receipts from customers = Net sales + Opening Accounts receivable – Closing accounts receivable

Payments to suppliers = COGS – Opening inventory + Closing inventory + Opening accounts payable
– Closing accounts payable

Other operating costs = Rent + Advertising + Insurance + Utilities + Income Tax expense

Interest paid = Interest expense

Note: Depreciation expense is not a cash item, so it does not go in the cash flow statement direct
method. It is used in the indirect method.
CASH FLOW - Indirect Method
$
Net income after tax
Add: Increases in current liabilities, decreases in current assets
Depreciation (Non-cash item) XXXX
Accounts Payable (CL – if increase) XXXX
Wages Payable (CL - if increase) XXXX
Less: Decreases in current liabilities, increases in current assets
Accounts Receivable (CA - if increase) (XXXX)
Inventory (CA - if increase) (XXXX)
(This should equal the net cash provided by operating activities XXXX
from the cashflow statement)

RATIOS
Operating cash flow margin for 20XX = Net cash flow / Net sales

Return on assets = (Net cash flow + Interest paid) / (Average Assets)

Return on Equity = Net cash flow / Average equity

ECO EFFICIENCY
Product value ($)
Eco Efficiency=
Environmental influence (m, L , kg , etc)

20XX 20XX
Sales $XXXX $XXXX
G&S Purchased $XXXX XXXX
Value added (Sales – G&S Purchased) $XXXX $XXXX
Materials (m, L, kg, etc) XXXX m XXXX m
Eco Efficiency $X.XX/m $X.XX/m

Pick the eco efficiency that is the highest. It has the highest monetary value for the amount of
materials it uses.
PAYBACK PERIOD
Option A
Year Amount to pay at Net expected Total paid back at Amount to pay back at year
beginning of year cash receipts year end end
1 XXX1 XX1X XX1X XXX1 – XX1X = XXX2
2 XXX2 XX2X XX1X + XX2X XXX2 – XX2X = XXX3
3 XXX3 XX3X XX1X+XX2X+XX3X XXX3 – XX3X = XXX4
4 XXX4 XX4X XXX1 0
5
XXX 4
Payback period = 3 years + ( ×365) days
XX 4 X
Pick the option with the shortest payback period.

NET PRESENT VALUE (NPV)


Option A
Year Net Cash Flow Present Value Factor XX% Present Value (NCF*PVF)
(From the PVF table)
0 (XXXX) 1 = (XXXX) * 1
1 XXXX 0.XXXX = XXXX * 0.XXXX
2 XXXX 0.XXXX = XXXX * 0.XXXX
3 XXXX 0.XXXX = XXXX * 0.XXXX
4 XXXX 0.XXXX = XXXX * 0.XXXX
5 XXXX 0.XXXX = XXXX * 0.XXXX

Pick the option with a positive Net Present Value as a negative NPV will mean that they did not meet
the desired return. If both are positive, pick the option with the higher NPV as it is worth more in the
present.

ANALYSIS (in table form of revenues and costs)


Option A Option B
Direct Materials $XX.XX $XX.XX
Direct Costs $XX.XX $XX.XX
Selling Price $XXXX.XX $XXXX.XX

Relevant Revenues
Revenue =$(Direct Materials + Direct =$(Direct Materials + Direct
Costs + Selling Price) Costs + Selling Price)

Relevant Costs
Cost per X ___ $XX.XX $XX.XX
Cost per XXXX ____ $XXXX.XX $XXXX.XX
Transport $XXX $XXX
Total Cost =$(Cost per XXXX + Transport) =$(Cost per XXXX + Transport)

Net Income = Revenue – Total Cost = Revenue – Total Cost


INCREMENTAL COSTS VS INCREMENTAL REVENUE
Incremental Revenue = Quantity * ($XX.XX Option A – $XX.XX Option B)
Less Incremental Cost
Direct materials = Quantity * ($XX.XX Option A – $XX.XX Option B)
Direct labour = Quantity * ($XX.XX Option A – $XX.XX Option B)
Transport = $XXX
Total Incremental Costs = Direct materials + Direct labour + Transport
Increase In Profit = Incremental Revenue – Total Incremental Costs
(This should equal the difference in Net
Income of the ANALYSIS)

Accept Option A if the net income of Option A is greater than the net income of Option B.

You might also like