The paper "Accounting and Financial Management" is a great example of a finance and accounting assignment. Considering Appendix 16A, the inventory of the West Virginia Coal Company on June 30th shows 500 tons at $62 per ton. A physical inventory on July 31 shows a total of 600 tons on hand. Revenue from sales of coal for July totals $ 105,000. The following Purchases were made during July: July 5, 1,000 tons at $64 per ton; July 15, 250 tons at $66 per ton; July 25, 300 tons at $69 per ton. Compute the inventory value as of July 31 using (a) FIFO and (b) LIFO Compute the gross profit using each method FIFO (First-in, first-out) Assumes that a vendor (or company) sells or uses up first the stock acquired earliest. Sales105,000 The cans are acquired first on July 5 for 1,000 tons at $64 per ton Therefore, the cost of goods sold: Beginning inventory37,200 Purchases64,000 Cost of goods available for sale101,200 Ending inventory20,700 Cost of goods sold80,500 Gross profit 24,500 In this case, therefore, the inventory value as of July 31 was $20,500 LIFO (Last-in, first-out) Assumes that a vendor (or a company) sells or uses up the stock acquired most recently first. Sales105,000 The cans are acquired last on July 25 for 300 tons at $69 per ton Therefore, the cost of goods sold: Beginning inventory20,700 Purchases64,000 Cost of goods available for sale84,700 Cost of goods sold20,300 Gross profit84,700 4. What went wrong at ABC Learning? There was a remarkable fall in ABC learning because it had forgone its basic business and decision making, as well as spending costs without reasonable management, which were the fundamentals of sound accounting.
In their pursuit of profit, they ignored the key financial realities in Australia and thus under looked its fundamental truths. After 2000 the federal government introduces child care benefits rebates thereby allowing families to apply for subsidies for childcarers and increased the demand for childcare.
The company underwent a massive and steady financial growth with its shares starting a share price at The Australian Stock Exchange from $2 in 2001 to $8.60 in 2006. However, in 2007, the shares started to fall and finally fell to $0.54 in 2008 due to unrealistic financial strategies which proved really unsustainable for the company.
Financial management. 3rd ed. London: BPP Learning Media, 2011.
Horngren, C. T., & Harrison, W. T. Internal control and cash. Accounting. Prentice-Hall. pp. 387-388 (2012).
Horngren, et al.. Introduction to management accounting (16th ed., p. 90). Pearson. 2014.
Paramasivan, C., and T. Subramanian. Financial management. New Delhi: New Age International (P) Ltd., Publishers, 2009. Print.