Your Perfect Assignment is Just a Click Away

We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!


2019 Annual Report for Kathmandu Holdings Ltd Calculations

2019 Annual Report for Kathmandu Holdings Ltd Calculations

Question Description

1. Use the information from the 2019 annual report for Kathmandu Holdings Ltd ,hereafter referred to as Kathmandu, to complete questions 1 and 2. The 2019 annual report for Kathmandu Holdings Ltd can be accessed from their website. Download the pdf The Consolidated Financial Statements and Notes to the Consolidated Financial Statements are on page 31 – 73. The current share price for Kathmandu can be found from the website..

a) Calculate the market capitalisation for Kathmandu based on the current share price and number of shares that have been issued as at 31 July 2019. Find the current share price for Kathmandu using the information above. Find the number of shares that have been issued from the annual report.

b) Compare the market capitalisation calculated in (a) above with the value of equity as recorded in the balance sheet as at 31 July 2019.

c) Provide two reasons why the book value of equity is different from the market capitalisation.

2. Assets, Liabilities and Equity of Kathmandu Holdings Ltd

a) Read Note 1.1 of the Notes to the Consolidated Financial Statements of Kathmandu on page 38 of the annual report. Use this information and other information from Kathmandu’s company website to describe the business of Kathmandu in your own words.

b) You have been asked by one of your friends to explain some of the items included in the Consolidated Balance Sheet (page 35) for Kathmandu as at 31 July 2019. You are required to describe what each item represents and provide reasons for its classification as either current or non-current asset/liability or equity using only the information provided in the financial statements. Also, give details of where the information on each item is located within the consolidated financial statements of Kathmandu. That is, your answers should relate specifically to Kathmandu Holdings Ltd., and not a general description of each item. i. Inventory ii. Trade and other receivables iii. Property, plant and equipment iv. Share capital

3. Charlene Jackson’s business, Hair Today, has been operating in Auckland for the month of February 2020. It is set up as a sole trader. You call in for a haircut, and while she is trimming your hair, she tells you how business is going. “I think it’s going very well,” she says. “Last time I went to the bank there were a lot of deposits. There were cash deposits of $100, $110, $105 and so on, totalling exactly $10,500 for February, the first month’s business. These don’t include the $500 still owed me for haircuts provided to the builders working on the new Recreation Centre at the University and the $1,000 prepaid by staff at the nearby office block. Of course the bank account also includes the $25,000 of savings that I put into the business when I started it up and the $10,000 loan that the bank gave me. Not to mention the balance of $20,000 in my personal savings account that I can always use, if necessary”. “I have spent $12,000 on the furniture and equipment for the business, $9,500 on hairdressers’ supplies and then there is the lease of this place. It is a TWO-year lease, but I paid six months rent in advance (from February to July), that’s $5,400 and a lease deposit of $2,000 that I can get back.” “The furniture and equipment should last 5 years with no residual value. Straight-line depreciation method is used. And the supplies, well I still have $4,000 worth unopened and sitting in the storeroom. I also get a cleaning company to come and do the floors; they charge $25 a week. I haven’t had to pay them anything yet, and I still owe them for four weeks work. Oh, there’s Marama. I just hired her yesterday at a salary of $2,000 per month. Today’s her first day of work. I also drew out $300 in cash to take my sister out to dinner on her birthday”

a) Prepare a worksheet using the template in the Answer workbook showing how the above accounting events will affect the Balance Sheet Equation. Note: calculate one month’s depreciation on the furniture and equipment. Ignore tax.

b) Prepare an Income Statement for the month of February 2020 and a Balance Sheet as at 29 February 2020 using the template in the Answer booklet.

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Course Elite only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Course Elite are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Course Elite is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Course Elite, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.