Neap 2010

[mmmmm]

Why is 1.1.3 deteriorated? The WCR and QAR both went up :S

Thanks!
Ps. I only have a hard copy of this exam, sorry!

EDIT:
Also with question 1.2.3
Why is it $14200?  I got 12000 because it's for 10 months...


EDIT (again, sorry):
For question 1.3
How did they get the acc depn of 10000? Shouldn't it be HC - CV which is 12 000 - 2 300?

Thanks
Not doing so well on this one :/

[eeps]

I think in Q. 1.1.3, Liquidity deteriorated because DTO and CTO got worse. DTO worsened from 34 to 36 days and this is outside the credit terms offered (30 days). Also with CTO, it worsened from 41 to 47 days which is outside the terms offered (45 days). Thus, this resulted in an overall decrease in Liquidity - I suppose this a more important factor than WCR and QAR.

I agree, I think in Q. 1.3.1 - the Accumulated Deprecation is wrong. It should be $9,700.

I don't know about Q. 1.2.3. I got that question completely wrong. :\

[mmmmm]

I think in Q. 1.1.3, Liquidity deteriorated because DTO and CTO got worse. DTO worsened from 34 to 36 days and this is outside the credit terms offered (30 days). Also with CTO, it worsened from 41 to 47 days which is outside the terms offered (45 days). Thus, this resulted in an overall decrease in Liquidity - I suppose this a more important factor than WCR and QAR.

I agree, I think in Q. 1.3.1 - the Accumulated Deprecation is wrong. It should be $9,700.

I don't know about Q. 1.2.3. I got that question completely wrong. :\

With Q1.1.3 -
Isn't DTO and CTO efficiency ratios? Argh i HATE ratios!

Also with Q1.6.2 -
Why is it $33 dollars?  It says $10 per 200 labels plus $1 GST.  And they are purchasing 50 units.  Where does it say that they are buying 3 lots of labels? :S And do you think it's wrong to put it as 'labels'?  I was going to do labels expense but i'm like hmm that doesn't sound right.

And thanks for your help

[mmmmm]

I think in Q. 1.1.3, Liquidity deteriorated because DTO and CTO got worse. DTO worsened from 34 to 36 days and this is outside the credit terms offered (30 days). Also with CTO, it worsened from 41 to 47 days which is outside the terms offered (45 days). Thus, this resulted in an overall decrease in Liquidity - I suppose this a more important factor than WCR and QAR.

I agree, I think in Q. 1.3.1 - the Accumulated Deprecation is wrong. It should be $9,700.

I don't know about Q. 1.2.3. I got that question completely wrong. :\

With Q1.1.3 -
Isn't DTO and CTO efficiency ratios? Argh i HATE ratios!

Also with Q1.6.2 -
Why is it $33 dollars?  It says $10 per 200 labels plus $1 GST.  And they are purchasing 50 units.  Where does it say that they are buying 3 lots of labels? :S And do you think it's wrong to put it as 'labels'?  I was going to do labels expense but i'm like hmm that doesn't sound right.

And thanks for your help

Ps. Is it just me, but this is a really hard exam :/ the 2008 Neap one was so much easier!

[eeps]

With Q1.1.3 -
Isn't DTO and CTO efficiency ratios? Argh i HATE ratios!

Also with Q1.6.2 -
Why is it $33 dollars?  It says $10 per 200 labels plus $1 GST.  And they are purchasing 50 units.  Where does it say that they are buying 3 lots of labels? :S And do you think it's wrong to put it as 'labels'?  I was going to do labels expense but i'm like hmm that doesn't sound right.

And thanks for your help

DTO and CTO are efficiency ratios to assess the speed of liquidity.

I don't know how they got Q. 1.6.2 either. =S It says "the purchase of the labels from Label 'R' Us (Chq.46)". I agree, it didn't specify the 3 lots of labels anywhere that I can see. Bad question, I think.

Ps. Is it just me, but this is a really hard exam :/ the 2008 Neap one was so much easier!

Yeah, I agree! =P This year's NEAP exam is hard as. The previous year's ones are easy compared to this year's one.

[mmmmm]

With Q1.1.3 -
Isn't DTO and CTO efficiency ratios? Argh i HATE ratios!

Also with Q1.6.2 -
Why is it $33 dollars?  It says $10 per 200 labels plus $1 GST.  And they are purchasing 50 units.  Where does it say that they are buying 3 lots of labels? :S And do you think it's wrong to put it as 'labels'?  I was going to do labels expense but i'm like hmm that doesn't sound right.

And thanks for your help

DTO and CTO are efficiency ratios to assess the speed of liquidity.

I don't know how they got Q. 1.6.2 either. =S It says "the purchase of the labels from Label 'R' Us (Chq.46)". I agree, it didn't specify the 3 lots of labels anywhere that I can see. Bad question, I think.

Ps. Is it just me, but this is a really hard exam :/ the 2008 Neap one was so much easier!

Yeah, I agree! =P This year's NEAP exam is hard as. The previous year's ones are easy compared to this year's one.

Oh i seeee. Thanks for your help

[eeps]

I worked out the answer to Q. 1.2.3

True, as you point out it is $12,000 (for the 10 months). But you also have to add the $2,200 (Prepaid Rent Revenue) from the Balance Sheet - this gives the figure of $14,200 in the General Journal. You have earned $12,000 in the period, but have also earned the $2,200 from the previous period as well.