ACCT 1046- Wk 8 EcoPak Ltd Income Statement Questions- University of Technology Sydney.

RMIT Classification: Trusted Student Name Student ID Week 7 Tutorial Assessment- Kilgors Strategic Investment Financial Evaluation 1. After financial evaluation (NPV) of Proposal 1(Winery in China) and Proposal 2 (luxury resort) which project would you recommend? Show your calculations by replacing the unfilled screenshot by your completed excel spreadsheet screenshots- one for Proposal 1 and another one for Proposal 2. [2+1=3 marks] Non-Financial Evaluation 2. After non-financial evaluation, provide some reasons why you recommended Proposal 1 or Proposal 2. Only focus on non-financial perspectives. Comment on at least 3 non-financial factors (the non-financial factors must be selected from the Excel Spreasheet). (word guide: 400 words in total;) [2*3=6 marks] RMIT Classification: Trusted Overall Recommendation 3. What is your overall recommendation for Kilgors Management – Proposal 1 or Proposal 2? Briefly explain why. [1 mark] 2 RMIT Classification: Trusted 3 RMIT Classification: Trusted Name and ID ACCT1046 Week 8 Assessment Question EcoPak Ltd is a small private company, specialising in the manufacture of takeaway packaging, which offers an environmentally friendly alternative to disposable food containers. The business’s accountant Kate has prepared a draft version of EcoPak’s Balance Sheet and Income Statement for the financial year ended 30 June 2020. Kate knows she has made several mistakes in classifying the elements of the Balance Sheet and Income Statement because the Income Statement shows EcoPak has made a loss and the Balance Sheet doesn’t balance! Kate’s statements are shown below. EcoPak Ltd – Draft Income Statement for the year ended 30 June 2020 Cash at Bank Accrued Wages Gross profit Expenses Bank Loan Interest Expense Prepaid Rent Depreciation Expense Donations Expense Accounts Receivable Other Expenses Earnings before interest and tax Accounts Payable Profit before tax Income Tax Expense Profit for the period from continuing operations EcoPak Ltd – Draft Balance Sheet AS AT 30 June 2020 Assets Liabilities Current Assets Current Liabilities Wages Expense 79,000 Drawings Cost of Sales 376,000 Inventory Rent Expense 33,200 Electricity Expense Sales Revenue 1,244,000 Non-current liabilities Prepaid Utilities 4,100 Trucks Property Plant and Equipment 578,000 Advertising Expense Non-current Assets Retained Profits 468,700 Owner’s Equity Mortgage 52,000 Insurance Expense 255,000 24,000 279,000 312,000 27,000 5,600 43,000 14,000 12,000 23,000 -157,600 16,000 -173,600 125,000 -298,600 -25,000 87,000 18,000 86,000 45,000 211,000 72,000 RMIT Classification: Trusted Total Assets Contributions Intangibles Total Owner’s Equity 2,835,000 Total Liabilities and Owner’s Equity 198,000 18,000 288,000 499,000 Kate has asked if you could fix her mistakes by preparing the correct Income Statement and Balance Sheet in the templates below (include dollar values and totals where relevant). (10 Marks) EcoPak Ltd – CORRECTED Draft Income Statement for the year ended 30 June 2020 Gross profit Expenses Earnings before interest and tax Profit before tax Profit for the period from continuing operations (5 Marks) RMIT Classification: Trusted EcoPak Ltd – Draft Balance Sheet AS AT 30 June 2020 Marks) Assets Liabilities Current Assets Current Liabilities Non-current liabilities Non-current Assets Total Assets Total Liabilities Owner’s Equity Total Owner’s Equity Total Liabilities and Owner’s Equity (5