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BAO2203 - Corporate Accounting | Surfstitch Group Ltd

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VICTORIA UNIVERSITY

   

BAO2203 - Corporate Accounting (BAO2203)

   

Added on  2019-11-08

BAO2203 - Corporate Accounting | Surfstitch Group Ltd

   

VICTORIA UNIVERSITY

   

BAO2203 - Corporate Accounting (BAO2203)

   Added on 2019-11-08

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ACCOUNTING OF SURFSTITCH GROUP1ACCOUNTING OF SURFSTITCHGROUP
BAO2203 - Corporate Accounting | Surfstitch Group Ltd_1
ACCOUNTING OF SURFSTITCH GROUP2ContentsPart I:..........................................................................................................................................3Part 1:......................................................................................................................................3Part 2:......................................................................................................................................3Part 3:......................................................................................................................................3Part 4:......................................................................................................................................4Part II:.........................................................................................................................................4References:.................................................................................................................................8
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ACCOUNTING OF SURFSTITCH GROUP3Part I:Part 1:The company went under the wings of a new leader. Under his leadership, the company wenton to spread its wings in other operations and also, began to restructure itself and alsoreconstruct so as to gather new products ideas. The company had been doing so that it couldimprove the cash flows and also reduce in the operating losses that it has been suffering from.Part 2:The following are the details desired: (Amounts in thousands in dollars) Particulars 20162015 Change change in% Goodwill 6,609.00 36,001.00 -29,392.00 -0.81642177 Investment insubsidiary 26,128.00 58,633.00 -32,505.00 -0.55438064 Cash position -18,569.00 39,741.00 -58,310.00 -1.46725045The company’s amount of the goodwill has reduced. This could be due to the loss in theoperating profits of the company. There is also a decrease in the amount of the investment inthe subsidiary. The decrease is at least by 50%. The cash position of the company has againreduced. The company has earned losses in all the 3 segments of the cash flow statement. The
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ACCOUNTING OF SURFSTITCH GROUP4first being the cash flows from operating activities, second being the cash flows frominvesting activities and the third being the cash flows from financing activities.Part 3:The following are the desired details: (Amounts in thousands in dollars) Particulars 20162015 Change change in% Selling anddistribution 1,01,268.00 44,683.00 56,585.00 1.266365284 Administration 49,237.00 7,424.00 41,813.00 5.632139009 Impairment 88,999.00 - 88,999.00 #DIV/0!The above table shows that there has been a major increase in the amount of the selling anddistribution expenses. The company has also increased the amount that it spent towards theadministration expenses. The company had 0 impairment during the year 2015 and now, ithas the impairment loss of about $90,000 thousand. The rise in the expenses is mainly due tothe increase in the amount of the revenue as well. The revenue of the company increased toup to 3 times.Part 4:Any investor would like to have an investment that is able to give him profit when he sells hisinvestment along with a regular return on his investment. But as the annual report of the year
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