Financial Accounting and Analysis Problems

This assignment presents two financial accounting problems. The first problem involves LykkeTil AS, requiring the calculation of optimal quantity and price, maximum achievable margin and result, and analysis of demand elasticity. It also explores an alternative export scenario. The second problem focuses on M&M's Lemonades AS, requiring the creation of an opening balance sheet, recording various transactions using journal entries, and calculating the profit and closing balance sheet for the period. The transactions include sales, purchases, VAT, interest payments, and loan repayments.

Question 3.
LykkeTil AS produces only one type of product and believes that the relationship between
price and volume in the domestic market for this product is:
P = 3 600 to 1.2 X (where P is the unit price and X - number of requested devices period).
An analysis of costs gave the following relationship between total costs and amount in the
relevant interval:
TK(total costs) = 600 X + 900 000 (where X is the number of units).
Maximum production capacity is 2,500 units in the period.
a) gain optimum quantity and price. Calculate the maximum achievable margin and maximum
achievable result.
b) the quantity and price are demand neutral elastic? Also calculate the maximum turnover
(TI).
c) As an alternative to selling at above market can now sell everything it produces abroad
(export) at a fixed price £ 1500, - per unit. What will gain optimal amount by selling in this
market, and what is the maximum achievable result?
Question 4.
Mikkel and Maria have 01.11.20X6( november 1`st 2016) started ”M & M`s Lemonades AS”
with the following assets (in NOK 1000)
Assets Valu
e
Van 150
Raw material storage 50
Property 970
1000 shares of XYZ AS (course(rate)
50/share) 50
PC, Printer, Telephones 30
Bank deposits 95
Cash 5
Machine for production of lemonade 500
Total assets 1

850
The assets are financed with 60% equity and 40% debt (loan from a local bank)
a) Enter the opening balance (IB in Norwegian) for ”M & M`s Lemonades AS” per
01.11.20X6 (1`sto f november 2016)
b) Specify how the following events / vouchers will be posted on the accounts in the
financial statement of ”M & M`s Lemonades AS” (the firm is within the toll area and
is registered for VAT) Registrations must be done without "draw up" accounts, ie to
include date, voucher number, account number and account name, and the amount to
be recorded debit (+) or credit (-) in accounts. Start with vouchers 100.
Take accounts from a standard account plan.
 2.11: Inserts ad in the local newspaper, 2 500 nok(norwegian kroner) inclusive
of 25% VAT. The local newspaper issues a bill with a maturity date of
15.11.2016.
 5.11: Sells 200 shares of XYZ for nok 60/share
 14.11: Cash recceipt: Various, stationery nok 12 500 inc VAT
 15.11: Paying ad in the local newspaper on maturity
 24.11: Fills gasolin eon the car for nok 800, cash
 30.11: Sales Journal: Cash sales of goods in November nok 100 000 inclusive
of 25% VAT
 1.12: Bank Account charged with nok 6 167 in interest payments on the loan
(no installments)
 7.12: Invoice from Lemon AS:
 Appliances (for resale) NOK 50 000
25% VAT NOK 12 500
Total NOK 62 500
15 days credit, 2%
 10.12: Credit note from Lemon AS
Lack of delivery per 7.12 NOK 3 000
25% VAT NOK 750
Total NOK 3 750

 27.12: Bank Recceipt: Payment to Lemon AS per 27.12, see transaction of
7.12 and the ref. Credit note of 10.12.
 29.12: Builds small extensions on the property for added storage capacity and
recceive the following documents:
Snekker AS
Tregata 3
6660 Skogsby
OrgNo NO 123 456 789 012 VAT
Bank account 132425768
Invoice 08/15/16 Skogsby, 29.12 20X6
M & M's Lemonades AS
Drikkegata 1
6010 Ålesund
 Extension materials NOK 100 000
 Hour consuption NOK 50 000
 VAT 25% NOK 37 500
Total NOK 187 500
Deadline: January 10, 20X7, 3%
 30.12: Bank Recceipt: Payment to carpenter AS, see transaction of 29.12
 31.12: The price of XYZ company shares have fallen to US $ 45 per share, and M &
M`s Lemonades AS takes into account the change in value in the financial statements
 31.12: Bank account charged with NOK 6 167 in interest payments on the loan, and
NOK 148 000 in installments (repayment of loan)
 31.12: Results, inventory- commodity warehouse empty
 31.12: Sales journal: Cash sales of goods in December, NOK 110 000 inclusive 25%
of VAT
c) What Is "M & M'Lemonade`s AS" its profit for the period 01.11.20X6-31.12.20X6?
d) What is "M & M's Lemonades AS" their balance per 31.12.20X6?