BF1101- PFA Suggested Solutions for January 2016 GUIDELINES FOR MARKING: · Principles based, students should be given credit even though they may make mistakes in their calculations · Credit should be given to students providing they demonstrate a level of understanding of the object under inquiry · Credit should be given for all attempts . Please note that the solutions are merely guidelines and where students provide a different answer, careful thought should be given to these responses. If in doubt please open out to the team for discussion. SECTION A Answer 1 The Statement of Profit and Loss of Cameron Plc for the year ended 31 December 2015: Revenue (367 + 5,845) £000 6,212 Cost of sales (working) (2,838) Gross profit 3,374 Operating expenses (working) (2,966) Profit from operations 408 Finance costs (158) Profit before tax 250 Taxation (116) Profit for the year 134 For correctly totalling the SPL, regardless of whether the figures included for revenue, cost of sales etc were correct, i.e. method marks Marking Notes 1 mark each - 2 See workings for allocation See workings for allocation 1 a 1 2 1
The Statement of Financial Position of Cameron Plc for the year ended 31 December 2015: Non-current assets Property, plant & equipment (working) 2,075 £000 Marking Notes See workings for allocation Current assets Total assets 3fi790 1 Inventories 750 Trade and other receivables 704 1 Cash and cash equivalents 261 1 1,715 Equity Ordinary share capital 1,000 Retained earnings (728 + 134) 1 862 1 for £728 + 1 for using profit total from SPL Non-current liabilities Long term borrowings 1,200 Provisions 50 1,250 1,862 Current liabilities 196 Short term borrowings 327 Trade and other payables 155 Tax payable 678 Total equity and liabilities 3fi790 For correctly totally the SPL, regardless of whether the figures included for revenue, cost of sales etc were correct, i.e. method marks (i.e. method marks) 2 1 1 1 a 1 1 2 2
Workings Cost of sales: Opening inventory £000 880 Purchases 2,708 Closing inventory (750) Operating expenses: Administration costs £000 Marking Notes 2,838 1 mark for each figure correctly allocated - max of 3 522 Salary costs 1,364 Distribution costs 398 Advertising costs 375 Depreciation charge 257 Legal costs 50 2,966 1 mark for each figure correctly allocated - max of 6 Propertyfi plant and equipment Land and buildings Plant and machinery Motor vehicles Depreciation charge Depreciation charge: Buildings: (£2,000 - £500)/30 years = 50 Plant and machinery: £674 x 25% Motor vehicles: £190 × 20% £000 1 mark for each figure correctly allocated - max of 4 £000 = 169 C = 38 257 1 mark each calculation - max of 3 Total marks available for question - 35 Maximum mark to be awarded - 30 3