Revision question on how to calculate break-even point and margin of safety.

Revision question on how to calculate break-even point and margin of safety

Bonne Bia limited is a newly formed company in the catering business founded by Kate and Paul Johnson. Kate and Paul have considerable experience in the food industry and saw an opportunity to establish a food/beverage business to service the tourist market during the four months from May to August. The business will be located in Wexford and permission has been obtained from Wexford County Council (WCC) to operate a food/beverage outlet near Curracloe beach. At present Kate and Paul are trying to decide between two possible food/beverage options. Pertinent information relating to each of the options is shown below. Initially, Kate and Paul intend to operate the outlet themselves without employing any other staff. read more

Revision question on how to perform the bank reconciliation

Revision question on how to perform the bank reconciliation

The following is a summary from the cash book of BW Ltd for July 2015:

On investigation, it was discovered that:

i)   Bank charges of TZS 15 shown on the bank statement have not been entered into the cash book.

ii)  A cheque drawn for TZS 110 to pay a supplier has been entered in the cash book as a receipt. read more

Revision question on IAS 10 – events after reporting period.

Revision question on IAS 10 - events after reporting period

Suame Ltd is a listed telecommunication company that prepares its financial statements for the year ended 31 October 2015 in accordance with IFRS. The financial statements are due to be authorized for issue on 15 January 2016. read more

Revision question on financial management NBAA B1, nov 2018

Revision question on financial management NBAA B1, nov 2018

(a)  The dividend growth model can be used in determining the cost of equity capital.

This model, however, has some weaknesses.

REQUIRED:

Outline the weaknesses of the model.

(b)     The following information is available regarding a mutual fund: read more