Question 2.3:

After further investigation, your fears are confirmed, and you find one transaction that Lamia Scale forgot to record. Lamia Scale sold some obsolete inventory. This inventory had an original price of $65,000 but was sold for only $40,000. However, the company forgot to record this transaction. 

Calculate and record in the response template provided below what Lamia Scale's current ratio and quick ratio were before considering the impact of this transaction (i.e., as presented in the financial statements in Question 2.1) and what the current ratio and quick ratio will be after adjusting the accounting records to reflect the impact of this transaction. (5 marks)

Note: Round your answers to two decimal places and show your workings.

Hint: Please refer to Lamia Scale Ltd's Balance Sheet in Question 2.1.

Question 2.1: The following information relates to Lamia Scale Ltd.

Using the Du Pont framework and the response template provided below, calculate the return on equity and its three drivers for 2024 and 2023. (Round your answers to 2 decimal places. You should show all workings). Once your calculations are presented in the response template below, in 50 words or less, discuss what is driving the change in return on equity from 2023 to 2024. (10 marks) 

Note: You can refer to the COMM1140 ratio list.

Question 1.3: In the balance sheet as at 30 June 2024, what would be the closing balance of retained profits? Show all workings. (5 marks)

Note: Use the response template provided below to answer this question.

Question 1.2: Prepare an income statement for the year ended 30 June 2024. (9 Marks)

Note: Use the response template provided below to answer this question.

Question 1.1: Record each transaction (transactions 1 to 8) in the table below. (11 marks)

Please use the response template provided. 

1.     

4.     

You are worried

HEALTHYME may have accidentally forgot to record some transactions during the year. For each of

the follow transactions, indicate whether the

given ratio would have increased, decreased, or not changed if HEALTHYME

had recorded the listed transaction. Each transaction’s effects

should be considered independently. (10 marks)

3.     

2.      

Discuss what these numbers indicate

to you as a current investor. (4 marks)

Identify two issues

from the case above that suggest SHOPSPACE has internal control problems. For each case, outline which component of the

internal control system is lacking.