Name1

<Course>

<Institutional affiliation>

<Date of submission>

<Name of instructor>
 Name2

Question 1: (11 marks)

Week 2 - Question 2:

Generally, social distancing is viewed as the best way of promoting health in our

different communities. However, it has been hard on the side of retail businesses that rely on a

person to personal interaction to thrive effectively and efficiently. As a result, most businesses

have decided to design strategies that can help them to survive in the catastrophe. Therefore,

flexibility is believed to be the main take away for these businesses. The natural pandemic is

already in existence and has affected most businesses, and that is why creativity is the only way

forward for making things right. The following are some of the strategies that retail businesses

can employ to survive in these times of social distancing.

Market expansion

This can be achieved through product expansion whereby, other products like sanitizers

should be brought into the market to attract the attention of both the old and new customers.

Similarly, the sanitizers must be placed at the entrance and exit of the business to ensure safety

for the customers in general. This will build customer trust in the business, and hence they will

continue buying from the shop. The market can also be expanded by offering after-sales services

to ensure that the new customers are retained in the business. However, the demand is not as

high as expected, but the few customers will remain committed to the business, hence allowing it

to survive the hard times. Furthermore, if there is enough potential, the business must consider

giving away free sanitizers to loyal and new customers. This will give them the thought that they

owe the business and as a result, they will remain loyal to it. Small retail businesses can as well

sell sanitizers to remain functioning in these hard times until things get better.

Consider new ways to deliver the goods or services

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It is important to note that the bigger retail businesses are thriving because of online

services like order and delivery. This means that the small retail shops have to think of strategies

that are more personal to equally survive in this catastrophe. Almost all retail businesses involve

direct interaction between the seller and the buyers. Therefore, virtual procedures have to be

adopted to ensure that these activities continue to happen in the presence of social distancing. For

a small business, boundaries (tied ropes) must be created to ensure that there is some significant

distance between the customer and the buyer at the time of sale.

Partner with other businesses

It is important to note that most retail businesses offer similar products and services to

customers. Therefore, there is a high chance that small businesses may fail to thrive with social

distancing. However, they can partner with other small businesses so that they can share much

profit instead of gaining little or no profit at all because every business has loyal customers.

Therefore, imagine a situation where these customers are merged through a business partnership.

The profits will be shared but also maximized at the same time, and the two or more businesses

will still survive because they share the same risks, and can easily design suitable strategies to

handle them.
 Name4

Question 5: (7 marks)
Week 7: Question 2:

Zara’s Fast Fashion Strategy

According to Zara’s timing, there is a lot of consideration for high speed. From the video exhibit,
it can be seen that the brand's popularity was kickstarted by it’s approach to fashion. As seen
from the video exhibit, Zara develops new designs throughout the year, and such designs are
only produced for a short time, which makes discounted sales unreasonable.

Initially, Zara's business model was to offer similar copies of products at comparatively lower
prices. However, the idea of instant fashion was later hatched, which opened the opportunity to
react quickly to new trends in the shortest time possible. Although photography and videography
were not as widespread as they are today, fashion styles were spread by clients who purchased
outfits from different cities and wore them in other cities. It opened the opportunity for designers
to new styles, which they could quickly design and produce.

In the 1990s, the company upgraded its stores. In comparison to other mass production retailers,
the new strategy ensured Zara’s clients were aware of the uniqueness of their clothing styles,
which attracted weekly client visits. Additionally, the “fast fashion” business model was able to
redesign the fashion industry, Zara expanded its logistic center, covering an area of 10,000
square meters.

When it comes to style, Zara produces around 12,000 styles a year, rather than producing the
same style in larger quantities, implying that even when a given style is already selling, there are
numerous styles in the production line. It brings clients the opportunity to find the right style of
their choice without experiencing difficulties.

Straight delivery without storage is another strategy that has enabled Zara to outcompete its
rivals. As the company is fast, there is no need for store managers to advertise and instead,
products are promoted by celebrity clients, maximizing profits through significant cost reduction.
 Name5

Question 2: (11 marks)

Week 6: Question 2:

The basic argument in the video is that for future marketing strategies to succeed, they will have
to create a genuine and emotional customer attachment to commodities under promotion.
additionally, any emotional attachment will only succeed if it signifies a “Lovemark.” Robert
further argues that without the core component of "lovemark", which is "respect" a love
relationship can't exist, and the symbols of "lovemark" include intimacy, mystery. According to
Robert, the following companies are examples of Lovemarks: Starbucks, Nike, Marmite,
Cambridge University, and MacDonalds.

Given Lovemarks, a service or product’s position on a respect/love axis can be used to assess its
importance. Therefore, a product can only win the consumer's heart and mind by going beyond
functional benefits. The product or service should provide an inspirational and meaningful value
proposition, create emotional engagement and attachments that advance the customer's decision
to buy. It is important to note is that the perceptual path to the stimulation of other psychological
processes such as memory is multisensory experiences with a given brand.

Developing love with a brand is motivated by two kinds of motivation. The first motivation is
associated with internal reasoning, where the consumer’s major objective is lovemark. However,
lovemark implies other ends such as peer approval or social status, especially when reasons
become extrinsic. These two kinds of motivators impact differently on consumer’s emotions,
finally triggering the need to discover a brand, engage with its values, discover its story, which
all influence the decision to buy.

As seen from the video exhibit, Robert has not discussed much the relationship between the
marketing field and consumer. The processes of lovemark formations are not fully explained,
making it difficult to fully understand how these processes take place. Additionally, it is difficult
to comprehend Robert's argument, as he doesn't pay much attention to how consumer awareness
can influence his proposed marketing strategies for purchase decisions and brand loyalty.
 Name6

Question 3: (7 marks)
Week 4: Question 1

For most marketers, studying consumer behavior is vital, as it brings an understanding

of consumers’ expectations. Additionally, studying consumers’ behaviors helps to
establish some of the reasons for a consumer's decision to purchase a given
commodity. Before any product is released onto the market, it's vital to understand
consumer's perceptions regarding its usefulness. The findings on consumer’s likes and
dislikes are vital for designing and redesigning marketing strategies.

Basing on the video exhibit provided, the followings are some of the tools used by
marketers to understand consumer behaviors: Spying on consumers to anticipate their
needs, using simulators to differentiate between the behaviors of different consumers,
and improving retail experiences by recording consumer experiences while shopping
in stores. As losing money in consumer behavior and marketing analysis is easy, it is
vital to stay informed and work with the most effective tools, which saves money and
protects the company from unnecessary expenses. With the help of the best tools for
the business, it will be easy for the company to accurately understand who the
customers are and the level of appeal that the products have. Such tools will help
improve the business and will facilitate customer retention.
Question 4: (7 marks)
Week 5: Question 3

Definition

The term target market is used to refer to the end-user or consumer that the business is

willing to sell its products or services. Therefore, target marketing is a process that requires

breaking the market into segments to design strategies that suit each segment ( Rogers, 2002).
 Name7

Description

It is important to note that, not all products can satisfy the collective wants of all

consumers. Therefore, each product has a particular group of consumers who purchase it. As a

result of this, most companies develop different strategies like product modification and brand

change, to suit a particular market segment. The business has to get involved in product

conceptualization and understand consumer needs in the market before creating a market target.

Target market segment strategy

The strategy for marketing focuses on the urban professional segment, and it requires

quick preparations to improve the quality of the product and refresh them for consumer

satisfaction. The products are always ready for consumption in the shortest time possible and are

always fresher compared to other competitors. This gives the products better tastes which allows

it to maintain its consistency in the market.

Service business analysis

The products are vital in a supermarket with a variety of brands that suit different

consumers' wants. The business faces completion from other similar businesses that offer

substitute goods to the market. The business products have a shorter life of about thirty days, and

this allows them to thrive in a competitive environment. Most companies are currently offering

limited products to the market due to low consumer turn up.

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Competition and buying patterns

The company products will be displayed in all supermarkets in the company for easy

accessibility. The only competition, in this case, is other substitute products. However, their

brands are not so attractive, hence making them less competitive. The products are packed in

small folded containers for easy transportation

Stay connected with customers

Generally, most customers are not buying the way they used to do before because we are

all face with the same problem. However, the business will need them in the times when things

get back to normal. Some of the customers will come back to the business for debts and it will be

upon the salesman to identify the loyal ones and supply them with what they want. This can

greatly keep them connected to the business for good because they are sure of where to run in

times of need. Similarly, the business can send email messages to customers to assure them that

they still have the products or services that they need and suggest to them the various modes of

acquisition. The websites must also be updated to ensure that, the customers can access the

current information on the different products and services offered.

 Name9

Question 5: (7 marks)
Week 7: Question 2:

Zara’s Fast Fashion Strategy

According to Zara’s timing, there is a lot of consideration for high speed. From the video exhibit,
it can be seen that the brand's popularity was kickstarted by it’s approach to fashion. As seen
from the video exhibit, Zara develops new designs throughout the year, and such designs are
only produced for a short time, which makes discounted sales unreasonable.

Initially, Zara's business model was to offer similar copies of products at comparatively lower
prices. However, the idea of instant fashion was hatched, which opened the opportunity to react
quickly to new trends in the shortest time possible. Although photography and videography were
not as widespread as they are today, fashion styles were spread by clients who purchased outfits
from different cities and wore them in other cities. It opened the opportunity for designers to new
styles, which they could quickly design and produce.

In the 1990s, the company upgraded its stores. In comparison to other mass production retailers,
the new strategy ensured Zara’s clients were aware of the uniqueness of their clothing styles,
which attracted weekly client visits. Additionally, the “fast fashion” business model was able to
redesign the fashion industry, Zara expanded its logistic center, covering an area of 10,000
square meters.

When it comes to style, Zara produces around 12,000 styles a year, rather than producing the
same style in larger quantities, implying that even when a given style is already selling, there are
numerous styles in the production line. It brings clients the opportunity to find the right style of
their choice without experiencing difficulties.

Straight delivery without storage is another strategy that has enabled Zara to outcompete its
rivals. As the company is fast, there is no need for store managers to advertise and instead,
products are promoted by celebrity clients, maximizing profits through significant cost reduction.
Name10

The basic argument in the video is that for future marketing strategies to succeed, they will have
to create a genuine and emotional customer attachment to commodities under promotion.
additionally, any emotional attachment will only succeed if it signifies a “Lovemark.” Robert
further argues that without the core component of "lovemark", which is "respect" a love
relationship can't exist, and the symbols of lovemark include intimacy, mystery. According to
Robert, the following companies are examples of Lovemarks: Starbucks, Nike, Marmite,
Cambridge University, and MacDonalds.

Given Lovemarks, a service or product’s position on a respect/love axis can be used to assess its
importance. Therefore, a product can only win the consumer's heart and mind by going beyond
functional benefits. The product or service should provide an inspirational and meaningful value
proposition, create emotional engagements and attachments that advance the customer's decision
to buy. It is important to note is that the perceptual path to the stimulation of other psychological
processes such as memory is multisensory experiences with a given brand.

Developing love with a brand is motivated by two kinds of motivation. The first motivation is
associated with internal reasoning, where the consumer’s major objective is lovemark. However,
lovemark implies other ends such as peer approval or social status, especially when reasons
become extrinsic. These two kinds of motivators impact differently on consumer’s emotions,
finally triggering the need to discover a brand, engage with its values, discover its story, which
all influence the decision to buy.

As seen from the video exhibit, Robert has not discussed much the relationship between the
marketing field and consumer. The processes of lovemark formations are not fully explained,
making it difficult to fully understand how these processes take place. Additionally, it is difficult
to comprehend Robert's argument, as he doesn't pay much attention to how consumer awareness
can influence his proposed marketing strategies for purchase decisions and brand loyalty.

For most marketers, studying consumer behavior is vital, as it brings an understanding of

consumers’ expectations. Additionally, studying consumers’ behaviors helps to establish some of
the reasons for the consumer's decision to purchase a given commodity. Before any product is
released onto the market, it's vital to understand consumer's perceptions regarding its usefulness.
The findings on consumer’s likes and dislikes are vital for designing and redesigning marketing
strategies.

Basing on the video exhibit provided, the followings are some of the tools used by marketers to
understand consumer behaviors: Spying on consumers to anticipate their needs, using simulators
to differentiate between the behaviors of different consumers, and improving retail experiences
by recording consumer experiences while shopping in stores.

Question 6: (7 marks)
Week 11: Question 1:
Name11

Prospecting and qualifying

The retail business should conduct research to identify the potential customers of the

business in these times of social distancing. This will enable them to know which products are

most suitable for selling in difficult economic times. The research will enable the business to find

out the weaknesses of the buyers (customers), and design possible strategies through which, they

can be viewed as the solution for the problem. That is the process that is referred to as

prospecting, and it acts as the foundation for all business sales ( Brown,2013). Therefore, a

prospect is a customer who is potentially willing and determined to buy from the business no

matter the circumstances. However, some customers may be potential buyers and yet they do not

have enough money to purchase what they need.

In such a scenario, I would advise the retail business to consider such people, by

convincing them to use the little they have to buy the products which are proportional to the

current situation (Helen, 2013). For increased revenue, the company needs to access more

customers. Every new prospect that marketers find increases sales production. In the long run,

the business will be able to realize growth. The benefit of this is that it gives the accompany the

ability to offset increased costs of goods and costs of operations, especially those resulting from

inflation. When there is an increase in the performance of salespeople, the company earns more

revenue, which is a win for everybody. Usually, the salespersons earn more commission, as the

company will seize the opportunity to earn more revenue. When it comes to qualification,

qualifying prospects become an integral part of the process of prospecting. The process involves

using specific qualifying criteria or questions that help find and understand the commercial

viability of the potential market.

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Name13

MANAGERIAL ACCOUNTING: ASSIGNMENT ONE

QUESTION TW0-WEEK THREE

Part (a)

Given that;

Job no.X10 at the Tik Tok coffee table manufacturing company

The number of tables made was 150 tables;

The Cost of direct materials employed was $22800;

The cost of paying direct labor was $16.00; hence the total direct labor cost for 600 hours

is the product of the two subjects;

Total labor cost=worked hours∗hourly rate

Total labour cost=600∗16.00=$ 9600

The Factory operating cost is given by the product between the hourly running cost and

the hours of operating the machinery.

Hence; Total factory overhead cost=worked hours∗hourly rate

Total factory overhead cost=400∗30.0=$ 12000

The total manufacturing cost for job no.X10 is;

¿ Cost of direct materials +total direct labor cost+ machine cost

Name14

Total manufacturing cost=$ 22800+ $ 9600+ $ 12000

Total manufacturing cost=$ 44400

Part (b) the cost of producing a single coffee table is the ratio of total manufacturing cost

to the total number of tables hence;

Total manufacturing cost

cost per coffee table=
the total number of tables

$ 44400
cost per coffee table=
150

cost per coffee table=296 dollars per table

Part (c) Price estimation; determining the real economic price of a commodity such as

the coffee table at which it should be offered to a market is a function of an established cost of

production.

Predicting an investment rate of return, knowing the unit cost of production aids the

managers of Tik Tok like any other manufacturing industry to predict if the business is feasible.
Name15

QUESTION TWO-WEEK 5

Part (1)

The activity cost for the overhead using the four driving costs.

For the purchasing orders;

1200000
The per-unit cost is =$ 30
40000

Therefore for the 17000 product, the purchasing orders revenue is $ 30∗17000=$ 510000

For the machine setups;

900000
The per unit is =50
18000

Therefore for the 5000 product, the machine setup is 50∗5000=250000

For the machining

4800000
The per-unit costing hour is =40
120000

Therefore for the 75000 machinings, the machine cost is 40∗75000=30000000

Name16

For the quality control hourly units

700000
The per-unit cost is =25
28000

Therefore for the 11000 product, the inspector level is 25∗11000=275000

Part (2)

The production cost is ¿ $ 510000+ ( 250000∗$ 20 ) + ( 30000000∗$ 38 )+ ( 275000∗$ 38 )

¿ $ 1155960000

$ 1155960000
Therefore the unit cost ¿ =$ 44460
26000

Part (3)

The gross profit for the model is a product of unit price and number of units, which is

( 50∗$ 44460 ) + ( 40∗$ 44460 ) + ( 25∗$ 44460 )

¿ $ 5112900

The difference between the production cost and the revenue gives the net revenue for the

firm hence

Net revenue¿ $ 5112900−$ 1155960000=−$ 1150847100

The above analysis shows that more production of the product will result in production

losses hence, the product TRI-X should be discontinued.

QUESTION THREE WEEK SIX

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The cumulative monthly sale forecast is 2600 within five months.

Initial total cash investment is $250000

The unit selling price of the electronic track is $140

Part (a) the cash receipt budget for the first three months

Since the cash, the receipt is a function of sales receipt, and then the calculations are as

follows,

For the month of July

sales=sold units∗unit price

sales=( 1450 ( 15 % )∗(unit price ) ) −(4 % of 1450 ( 15 % ))∗( unit price )+ 1450(25 %)∗unit price

sales=1450 ( 0.15∗140 )− ( 0.04∗1450∗0.15∗140 )+(1450∗0.25∗140)

sales=$ 79982

For the month of August,

sales=sold units∗unit price

sales=( 1650 ( 40 % )∗( unit price ) )

sales=1650 ( 0.4∗140 )
Name18

sales=$ 92400

For the month of September

sales=sold units∗unit price

sales=( 2120 ( 40 % )∗( unit price ) )

sales=2120 ( 0.4∗140 )

sales=$ 118720

Hence finally the sales are indicated as shown below;

S/NO Month Sold units Unit Total

price($) sales($)

1 July 580 140 79982

2 September 660 140 92400

3 August 848 140 118720

4 TOTAL 2088 N/A 291102

Name19

Part (b) material purchases budget

Purchase receipt

Direct materials purchased on a percentage of production requirements which is the

number of sales demanded to be produced.

For the month of July

20% of the following monthly production

¿ 0.2∗1650=330

For the month of September

20% of the following monthly production

¿ 0.2∗2120=424

For the month of August

20% of the following monthly production

¿ 0.2∗2460=492
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S/NO month

Purchases

1 July 330

2 Septembe 424

3 August 492

Part (c) the cash budget for the month of July

For the month of July

sales=sold units∗unit price

sales=( 1450 ( 15 % )∗(unit price ) ) −(4 % of 1450 ( 15 % ))∗( unit price )+ 1450(25 %)∗unit price

sales=1450 ( 0.15∗140 )− ( 0.04∗1450∗0.15∗140 )+(1450∗0.25∗140)

sales=$ 79982
Name21

QUESTION TWO WEEK 8

The cost of producing a bottle is $3.00 with a shipping cost of $0.20 for every unit.

For the external market, External selling prices are $4.00 per unit bottle

The cost incurred by the perfume division on each bottle in the external market is $3.50

Part (a)

( ∑ of prices)
The minimum transfer price¿ =¿
2

$ 4.00+ $ 3.5 7.5

The minimum transfer price¿ = =$ 3.75
2 2

Part (b) for no excess capacity for the bottle division, the price would remain the same. It

is because; the demand has been catered for during production.

Part (c) for no excess capacity for the bottle division, the perfume division will be willing

to pay the external price and the shipping cost, which will be

external price+shipping cost=( 4+0.2 ) =$ 4.2

Part (d) when the demand is low at an excessive supply or production, it is very

significant to employ market-based pricing than cost-based prices. It is because cost-based

pricing results in hyperinflation.

Name22

QUESTION THREE-WEEK 10

Part (a) the weighted average unit contribution margin is given by the

taking the sales mix percentages for selling price and cost of production.

weighted average unit contribution margin=( grand selling price∗unit ) + ( cost∗units )

unit contribution margin=( 250∗12000 ) + ( 400∗600 )+ ( 1500∗2000 )−( ( 80∗12000 )+ ( 200∗600 )+ ( 800∗2000

unit contribution margin=6240000−2680000

unit contribution margin=$ 3560000

Part (b) the number of units that must be sold at the break-even point for each model

printer type is executed as a percentage of the sales mix for the units sold.

¿ sales mix as the percentage of expected sales

For the alpha

Break−even units=50 %∗12000

Break−even units=0.5∗12000

Break−even units=6000 units

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For the Beta

Break−even units=40 %∗6000

Break−even units=0.4∗6000

Break−even units=2400 units

For the Gamma

Break−even units=10 %∗2000

Break−even units=0.1∗2000

Break−even units=200 units

Part (c)

(i) Margin of safety is the measure at which production is still meeting the production

costs. It's needed to predict the minimum loss that can be registered by a firm for a given

production.

(ii) For the projected units of 25000 units,

Revenue=( units∗price per unit )−(units∗per unit variable cost )

( 250+ 400+1500 ) ( 80+200 +800 )

Revenue={ ∗25000 }−{ ∗25000 }
3 3

Revenue=17916666.667−9000000

Revenue=$ 8916666

But the margin of safety is the revenue less the fixed assets
Name24

the margin of safety=$ 8916666−$ 5000000=$ 3916666

QUESTION THREE-WEEK 11

Part (a)

The revenue to be collected from 80000 units produced when each unit is $240, at an

expense of the unit cost of $201 is computed below:

Revenue=( 80000∗$ 240 )−( 80000∗201 )=80000 ( 240−201 )=3120000

For the 10000 units, Revenue=10000 ( 240−201 )−import−shipping

Revenue=10000 ( 240−201 )−42000−( 9∗10000 )=$ 258000

unit price=Revenue /units

$ 258000
unit price= =$ 25.8
10000

The minimum unit price for an acceptable profit is $25.8

Part (b)

For the 100 unit at blemishes, price is a function of 10000−100=9900 units

Hence for the 9900 units, Revenue=9900 ( 240−201 )−import−shipping

Revenue=9900 ( 240−201 )−42000−( 9∗9900 )=$ 255000

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unit price=Revenue /units

$ 258000−255000
unit price=
10000

$ 3000
unit price= =$ 30
100

The minimum unit price for an acceptable profit is $30

The relevant cost for setting the price here is the demand to supply mechanisms. This is

because reduced demand results in reduced supply so if the price is set above $30, the customer

may avoid the flicker.

Part (c). Yes, all future cost is relevant in decision making. According to Gilbert, (2008),

future cost determines a prolonged use of the product by the clients. A failure, to consider that

the future consist of an initial stage would mean prices go high at a later time hence the demand

may reduce resulting in great losses.

Name26

CORPORATE ACCOUNTING: ASSIGNMENT TWO

QUESTION ONE WEEK 7

Given the machine, the expense is $640000

Depreciation for 4 years,

The basic profit made in the first year is $600000.

Total deducted expenses are given by the summation of all involved operating costs

which is calculated as follows;

Total deducted expenses=entertainment + salary

Total deducted expenses=$ 60000+$ 80000

Total deducted expenses=$ 140000

At the tax rate of 30%, the tax paid is given as

Part (a) the company’s taxable profit is given as;

Basic earning=net profit + expenses

Basic earning=$ 600000+ $ 140000

Therefore the taxable income is $ 740000

Therefore the tax payable for 2017 is 30% of the taxable income which is;

Tax payable=30 % of the taxable income

Tax payable=30 %∗$ 740000

Name27

Tax payable=$ 222000

Part (b) either the deferred tax liability or the deferred tax asset will be

Upon acknowledging the receipt of $70000,

The tax paid will be 30 %∗( $ 740000+ $ 70000 )=0.3∗$ 810000=$ 243000

Hence the deferred tax liability is the difference between the disposable tax income and

the anticipated tax income.

Deferred tax=$ 243000−$ 222000

¿ $ 21000

Part (c) the journal entries on 30 June 2017 are profit, taxable income, advertisement fee,

and salary fee.

QUESTION TWO WEEK 8

The value of the asset for consideration is $1000000.

The number of shares is 800000. Since the value of each share is $1.50, then the total

value of the entire 800000 shares is given as a multiplier of $1.50 which is;

Total share value=Number of share∗multiplier value

Total share value=800000∗$ 1.50

Total share value=$ 1200000

Name28

Therefore, the total paid consolidation is given by the summation of the initial stake and

the total share value.

Total paid consolidation=$ 1000000+ $ 1200000

Total paid consolidation=$ 2200000

Part (a) of the data entries required for the acquisition records are the cost of acquiring

the asset, liabilities, dividends, and net income.

Part (b) the bargain purchase before the acquisition is given by the summation of

generated income fewer expenses.

Hence,

The bargain purchase

¿ fair value of acquired asset +retained earnings−liabilities−shareholders equity−cost of acquiring the asset

The bargain purchase

¿ $ 2640000+ $ 1120000−($ 720000+ $ 800000+ $ 2200000)

The bargain purchase=3760000−3720000

The bargain purchase=$ 40000

Part (c) Discount is a required entry to minimize the exploitation of the subsidiary firm

by the parent firm.

Part (b). When the value of the asset for consideration is maintained at $1000000
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The number of shares is 400000. Since the value of each share is $1.50, the total value of

the entire 400000 shares is a multiplier of $1.50 which is;

Total share value=Number of share∗multiplier value

Total share value=400000∗$ 1.50

Total share value=$ 600000

Therefore, the total paid consolidation is given by the summation of the initial stake and

the total share value.

Total paid consolidation=$ 1000000+ $ 600000

Total paid consolidation=$ 1600000

The bargain purchase before the acquisition is given by the summation of generated

income fewer expenses.

Hence,

The bargain purchase

¿ fair value of acquired asset +retained earnings−liabilities−shareholders equity−cost of acquiring the asset

The bargain purchase

¿ $ 2640000+ $ 1120000−($ 720000+ $ 800000+ $ 1600000)

The bargain purchase=3760000−3120000

The bargain purchase=$ 640000

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This is an indication that reducing the cost of acquiring the consolidated asset increases

the bargain purchase.

QUESTION THREE WEEK 4

On selling ordinary shares, the following are the journal entries when executing the

transactions and events;

Cost of sales of shares,

Total revenue of shares sold,

Differed value of shares,

Number of shares,

Value of each sold share,

Hire purchase value,

Date of disbursement of the share.

QUESTION FOUR WEEK 10

Part (a) the consolidated disposable income is given to the primary firm, meanwhile, the

no controlling interests in aright fraction to ownership are given, for example, 80 percent is given

to a parent while the 20% is given to the subsidiary firm.

Name31

Part (b)

The non-controlling interest is a fraction of equity ownership in any firm that is

purchasing goods from another firm. The seller is termed as an apparent firm while the buying

firm is termed as a subsidiary firm. The parent firm has an interest called a controlling interest

that lies between 50 to 100 percent. The consolidation of the disposable income of the subsidiary

firm is leading to its funds.

Part (c)

A parent firm experiences the deficit and or the investment returns before the

deconsolidation of subsidiary firms. When a parent firm retains interests that are not controlling

the rate of disposable income, measuring an investment occurs at the forecasted value as well as

any loss

Part (d) the first step is to identify the assets owned by a firm, the liability is secondly

identified and deducted from the assets, and then finally the shareholders' equity is found by

adding all shareholders' investment return.

QUESTION FIVE WEEK 9

(i) According to Li Chen, the sales entry of $ 15000 is correct; this is because

Amelie ltd bought the inventory for $15000 cash from Jessica limited.

During the trading period for Jessica Limited, the inventory had been bought at $12000;

hence the cost of sale was $12000 and not $13000.

Name32

The profit made on the inventory or the retained inventory value is attained by taking the

difference between the sales and the cost of sales.

Hence; Invontory=sales−cost of sales

=$15000-$12000

=$3000

Therefore the inventory was worth $3000 and not $2000

Finally, since Jessica did not execute any hire purchase business and the inventory was

tax-free, then the deferred tax asset and the income tax expense were zero not $300 for each data

entry.

(ii) Upon selling the inventory by Amelie limited, the cost of sales by Amelie

limited was $15000.

For a 50% sale on the inventory, the sale was $8000.

The tax expenses are 30% of sales made which is 0.3∗$ 8000=$ 2400

Part (b)

On 30 June 2017.

Since Jordan limited bought the factory from Laila limited at $450000, then the cost of

sale was $450000.

Since the recurring value was $600000, then the sales will not be $600000 hence the

retained earnings will be sales−cost of sales=$ 600000−$ 450000=$ 150000

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The income tax paid was 30% of the generated income which is0.3∗$ 150000=$ 45000 .

depreciation 300000
The depreciation value is ∗100= ∗100=50 %
value 600000

Then the depreciation will be 0.5∗( 150000−45000 )=0.5∗105000=$ 52500

On 30 June 2018

depreciation 300000
The depreciation value is ∗100= ∗100=50 %
value 600000

Then the depreciation will be 0.5∗( 52500 )=$ 26250

QUESTION SIX WEEK 12

Part (a) the paid cash consideration of $360000, therefore, 25% of the inventory was

0.25∗$ 360000=$ 90000

Therefore, the basic income generated on the date of acquisition was;

' '
¿ 25 % inventory + total shareholder equity +buildin g s net value

¿ $ 90000+750000+(300000−240000)

¿ $ 90000+ $ 750000+ $ 60000

¿ $ 900000

However, taking 30% of the basic generated income, the bargaining value becomes

$ 900000∗( 100 %−30 % )=$ 900000∗0.7=$ 630000

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Part (b) for the year bending 30 June 2015, Jamuna limited registered sales of $90000 and

the dividend was $30000 for which the net profit was $ 90000−$ 30000=$ 60000

Therefore the retained value was the sum of 75% of the sold inventory and the after-tax-

free net profit.

( 0.75∗$ 360000 ) +$ 60000=$ 330000

Part (c) for the year bending 30 June 2016, Jamuna limited registered sales of $300000

and the dividend was $150000 for which the net profit was $ 300000−$ 150000=$ 150000

Therefore the retained value was the sum of 75% of the sold inventory and the after-tax-

free net profit.

( 0.75∗$ 360000 ) +$ 150000=$ 420000

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References

Gilbert, C. L. (2008): Commodity Speculation and Commodity Investments,

Forthcoming in Journal of Commodity Markets and Risk Management (2009).

Jennifer J. Filla; Helen E. Brown (2013). Prospect Research for Fundraisers: The Essential

Handbook. John Wiley & Sons. pp. 20–21.

Rogers, Monica (2002). "The zen of noodles: Noodles & Company menu master Ross Kamens never

stop exploring new ways to prepare pasta". Chain Leader. 7 (1).