{"id":129299,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/assignment-6accounting-and-finacial-management-mancosa-postgraduate-diploma-in-business-management-58-2"},"modified":"2017-08-16T06:31:50","modified_gmt":"2017-08-16T06:31:50","slug":"assignment-6accounting-and-finacial-management-mancosa-postgraduate-diploma-in-business-management-58-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/assignment-6accounting-and-finacial-management-mancosa-postgraduate-diploma-in-business-management-58-2\/","title":{"rendered":"Assignment 6;Accounting and finacial Management\/ MANCOSA: POSTGRADUATE DIPLOMA IN BUSINESS MANAGEMENT 58"},"content":{"rendered":"<div class=\"the_content_wrapper\">\n<p>Assignment 6;Accounting and finacial Management\/ MANCOSA: POSTGRADUATE DIPLOMA IN BUSINESS MANAGEMENT 58<\/p>\n<p>QUESTION 1 (15)<br \/> Shanghai Limited has the choice of purchasing one of two machines viz. machine P and machine Q. Both<br \/> machines have a five-year life with no residual value. The annual volume of production for both machines is<br \/> estimated at 300 000 units, which can be sold at R12 per unit.<br \/> Depreciation is calculated on the machine using the straight-line method.<br \/> Machine P costs R4 500 000. Its annual variable costs are estimated at R400 000 (excluding depreciation). Fixed<br \/> costs are estimated at R1 900 000.<br \/> Machine Q costs R4 800 000. Its variable costs are estimated at R360 000 (excluding depreciation). Fixed costs<br \/> are estimated at R1 800 000.<br \/> The cost of capital may be assumed at 14%.<br \/> Required:<br \/> 1.1 Use the net present value method to determine and justify which machine should be selected by the<br \/> company. (10)<br \/> 1.2 Calculate the accounting rate of return for machine P. (5)<br \/> Abridged Income Statement (internal use) 2015 2014<br \/> Sales units (thousands) 200 120<br \/> R\u2019OOOs R\u2019OOOs<br \/> Sales 18 000 12 000<br \/> Variable costs (all manufacturing) 9_QQQ m2<br \/> Contribution 9 000 5 000<br \/> Fixed Costs (80% manufacturing, 20% administration) 6_7_0_Q flop<br \/> Earnings before Interest and Tax 2 300 3 000<br \/> Interest M w<br \/> Earnings after Interest before Tax 850 2 500<br \/> Tax (30%) Q E<br \/> Earnings after Interest and Tax _5_9_5 1M<br \/> Abridged Statement of Financial Position 2015 2014<br \/> (Balance Sheet) R\u2019OOOs R\u2019OOOs<br \/> Fixed Assets 9 515 8 236<br \/> Current Assets 2 097 768<br \/> Inventory 445 250<br \/> Debtors 1 652 468<br \/> Cash 0 50<br \/> Total Assets 11 612 _9__Q_(_)_4<br \/> Equity and Liabilities<br \/> Ordinary share capital 3 000 3 000<br \/> Retained Income 4 007 3 412<br \/> Long Term Debt 1 735 1 634<br \/> Current Liabilities 2 870 958<br \/> Trade Creditors 1 350 958<br \/> Overdraft 1 520 0<br \/> Total Equity and Liabilities 11 612 9 004<br \/> 58<br \/> PROGRAMME HANDBOOK: JULY 2016 INTAKE<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Assignment 6;Accounting and finacial Management\/ MANCOSA: POSTGRADUATE DIPLOMA IN BUSINESS MANAGEMENT 58 QUESTION 1 (15) Shanghai Limited has the choice of purchasing one of two machines viz. machine P and machine Q. Both machines have a five-year life with no <a href=\"https:\/\/www.benedictsol.com\/blogs\/assignment-6accounting-and-finacial-management-mancosa-postgraduate-diploma-in-business-management-58-2\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-129299","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/129299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=129299"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/129299\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=129299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=129299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=129299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}