ACCTG 101: Financial Statement Analysis, Cost-Volume-Profit, Budgeting

This document provides a solution to Accounting ACCTG 101 Assignment 2 from the University of Auckland, Second Semester 2018. The assignment covers three main topics: financial statement analysis, cost-volume-profit (CVP) analysis, and budgeting. The financial statement analysis section involves calculating and interpreting financial ratios such as Return on Assets, Debt to Equity Ratio, and Interest Coverage Ratio, along with a discussion of net profit margin and asset turnover. The CVP analysis section calculates breakeven points and margins of safety, and evaluates the impact of promotional offers on profit. The budgeting section constructs a cash budget for Spatial Prints for the three months ended December 31, 2018, including calculations for cash collections, payments, and net cash flow, along with a memorandum discussing the cash flow analysis. The solution references relevant academic sources and includes detailed workings for numerical problems.