Homework Help is Here – Start Your Trial Now!
Business
Accounting
ADBRI Limited (ABC, formerly Adelaide Brighton Limited) is an integrated construction material and lime producing group of companies focused on the construction, engineering, infrastructure and resource sectors in Australia. ABC has three main operating divisions being: Cement, Lime, Concrete and Aggregates and Concrete Masonry Products. Acrow (ACF, formerly NMG Corporation Limited) operates in the Australian construction services industry, hiring formwork, falsework and scaffolding equipment and undertaking sales of formwork and scaffolding related consumables. The Formwork operation involves the supply of the temporary mould that supports concrete structures in their construction. The Scaffolding operation supplies scaffolding equipment and access solutions to builders and building contractors when working at heights. Below are extracts of ACF and ABC Limited's income statements and balance sheets for 2020. Item ACF ABC Limited Income Statement Income Statement Operating Revenue 81,681,600.00 1,453,600,000.00 Other Revenue 2,196,471.00 4,100,000.00 Total Revenue Excluding Interest 83,878,071.00 1,457,700,000.00 Operating Expenses (61,463,784.00) (1,188,100,000.00) EBITDA 22,414,287.00 269,600,000.00 Depreciation (9,639,607.00) (91,200,000.00) Amortisation 0.00 (2,200,000.00) Depreciation and Amortisation (9,639,607.00) (93,400,000.00) EBIT 12,774,680.00 176,200,000.00 Interest Revenue 37,211.00 2,200,000.00 Interest Expense Net Interest Expense (2,544,787.00) (2,507,576.00) (22,600,000.00) (20,400,000.00) PreTax Profit 10,267,104.00 155,800,000.00 Tax Expense 320,705.00 (42,200,000.00) Net Profit after Tax 10,587,809.00 113,600,000.00

ADBRI Limited (ABC, formerly Adelaide Brighton Limited) is an integrated construction material and lime producing group of companies focused on the construction, engineering, infrastructure and resource sectors in Australia. ABC has three main operating divisions being: Cement, Lime, Concrete and Aggregates and Concrete Masonry Products. Acrow (ACF, formerly NMG Corporation Limited) operates in the Australian construction services industry, hiring formwork, falsework and scaffolding equipment and undertaking sales of formwork and scaffolding related consumables. The Formwork operation involves the supply of the temporary mould that supports concrete structures in their construction. The Scaffolding operation supplies scaffolding equipment and access solutions to builders and building contractors when working at heights. Below are extracts of ACF and ABC Limited's income statements and balance sheets for 2020. Item ACF ABC Limited Income Statement Income Statement Operating Revenue 81,681,600.00 1,453,600,000.00 Other Revenue 2,196,471.00 4,100,000.00 Total Revenue Excluding Interest 83,878,071.00 1,457,700,000.00 Operating Expenses (61,463,784.00) (1,188,100,000.00) EBITDA 22,414,287.00 269,600,000.00 Depreciation (9,639,607.00) (91,200,000.00) Amortisation 0.00 (2,200,000.00) Depreciation and Amortisation (9,639,607.00) (93,400,000.00) EBIT 12,774,680.00 176,200,000.00 Interest Revenue 37,211.00 2,200,000.00 Interest Expense Net Interest Expense (2,544,787.00) (2,507,576.00) (22,600,000.00) (20,400,000.00) PreTax Profit 10,267,104.00 155,800,000.00 Tax Expense 320,705.00 (42,200,000.00) Net Profit after Tax 10,587,809.00 113,600,000.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
ADBRI Limited (ABC, formerly Adelaide Brighton Limited) is an integrated construction material and lime producing group of companies focused on the construction, engineering, infrastructure and resource sectors in Australia. ABC has three main operating divisions being: Cement, Lime, Concrete and Aggregates and Concrete Masonry Products. Acrow (ACF, formerly NMG Corporation Limited) operates in the Australian construction services industry, hiring formwork, falsework and scaffolding equipment and undertaking sales of formwork and scaffolding related consumables. The Formwork operation involves the supply of the temporary mould that supports concrete structures in their construction. The Scaffolding operation supplies scaffolding equipment and access solutions to builders and building contractors when working at heights. Below are extracts of ACF and ABC Limited's income statements and balance sheets for 2020. Item ACF ABC Limited Income Statement Income Statement Operating Revenue 81,681,600.00 1,453,600,000.00 Other Revenue 2,196,471.00 4,100,000.00 Total Revenue Excluding Interest Operating Expenses 83,878,071.00 1,457,700,000.00 (61,463,784.00) (1,188,100,000.00) 269,600,000.00 EBITDA 22,414,287.00 Depreciation Amortisation (91,200,000.00) (2,200,000.00) (93,400,000.00) (9,639,607.00) 0.00 Depreciation and Amortisation (9,639,607.00) EBIT 12,774,680.00 176,200,000.00 Interest Revenue 37,211.00 2,200,000.00 Interest Expense Net Interest Expense (2,544,787.00) (2,507,576.00) (22,600,000.00) (20,400,000.00) 155,800,000.00 PreTax Profit 10,267,104.00 Tax Expense 320,705.00 (42,200,000.00) Net Profit after Tax 10,587,809.00 113,600,000.00
Transcribed Image Text:ADBRI Limited (ABC, formerly Adelaide Brighton Limited) is an integrated construction material and lime producing group of companies focused on the construction, engineering, infrastructure and resource sectors in Australia. ABC has three main operating divisions being: Cement, Lime, Concrete and Aggregates and Concrete Masonry Products. Acrow (ACF, formerly NMG Corporation Limited) operates in the Australian construction services industry, hiring formwork, falsework and scaffolding equipment and undertaking sales of formwork and scaffolding related consumables. The Formwork operation involves the supply of the temporary mould that supports concrete structures in their construction. The Scaffolding operation supplies scaffolding equipment and access solutions to builders and building contractors when working at heights. Below are extracts of ACF and ABC Limited's income statements and balance sheets for 2020. Item ACF ABC Limited Income Statement Income Statement Operating Revenue 81,681,600.00 1,453,600,000.00 Other Revenue 2,196,471.00 4,100,000.00 Total Revenue Excluding Interest Operating Expenses 83,878,071.00 1,457,700,000.00 (61,463,784.00) (1,188,100,000.00) 269,600,000.00 EBITDA 22,414,287.00 Depreciation Amortisation (91,200,000.00) (2,200,000.00) (93,400,000.00) (9,639,607.00) 0.00 Depreciation and Amortisation (9,639,607.00) EBIT 12,774,680.00 176,200,000.00 Interest Revenue 37,211.00 2,200,000.00 Interest Expense Net Interest Expense (2,544,787.00) (2,507,576.00) (22,600,000.00) (20,400,000.00) 155,800,000.00 PreTax Profit 10,267,104.00 Tax Expense 320,705.00 (42,200,000.00) Net Profit after Tax 10,587,809.00 113,600,000.00
Item ACF ADBRI Limited Balance Sheet Balance Sheet Cash 7,238,511.00 94,000,000.00 Receivables 17,947,686.00 191,100,000.00 Prepaid Expenses 1,182,467.00 5,577,745.00 9,600,000.00 Inventories 152,100,000.00 Investments 0.00 0.00 NCA Held Sale 72,854.00 0.00 Other 239,747.00 5,700,000.00 Total Current Assets 32,259,010.00 452,500,000.00 Receivables 0.00 45,600,000.00 Inventories 0.00 0.00 Investments 0.00 197,800,000.00 PP&E 108,432,088.00 1,141,800,000.00 Intangibles(EXGW) 0.00 8,600,000.00 Goodwill 7,428,704.00 272,500,000.00 Future Tax Benefit 0.00 0.00 Other 99,411.00 4,100,000.00 Total NCA 115,960,203.00 1,670,400,000.00 Total Assets 148,219,213.00 2,122,900,000.00 Account Payable 19,727,810.00 172,000,000.00 Short-Term Debt 9,401,859.00 3,900,000.00 Provisions 4,686,028.00 37,700,000.00 NCL Held Sale 67,317.00 0.00 Other 350,000.00 7,700,000.00 Total Curr. Liabilities 34,233,014.00 221,300,000.00 Account Payable NLong-Term Debt 3,331,309.00 0.00 46,566,911.00 550,900,000.00 Provisions 5,792,745.00 128,700,000.00 Other 0.00 0.00 Total NCL 55,690,965.00 679,600,000.00 Total Liabilities 89,923,979.00 900,900,000.00 Share Capital 45,674,176.00 740,100,000.00 Reserves 914,264.00 (6,200,000.00) Retained Earnings Other Equity Convertible Equity 11,706,794.00 485,800,000.00 0.00 0.00 0.00 0.00 SE Held Sale 0.00 0.00 Outside Equity Total Equity 2,300,000.00 58,295,234.00 1,222,000,000.00 (e) Calculate each of these asset turnover ratios for ACF and ABC and complete the table below (Use closing balance to calculate and round up numbers to 2 decimal places 0.xx or x%). ACF АВС Operating Working Capital Turnover Accounts Receivable Turnover Inventory Turnover Accounts Payable Turnover Days' Accounts Receivable Days' Inventory (f) What are the primary components of operating working capital? (g) Suggest possible reasons for the difference in the operating working capital turnover of (h) Is there any difference in ACF and ABC's long-term assets management? List and calculate one appropriate financial ratio to explain.
Transcribed Image Text:Item ACF ADBRI Limited Balance Sheet Balance Sheet Cash 7,238,511.00 94,000,000.00 Receivables 17,947,686.00 191,100,000.00 Prepaid Expenses 1,182,467.00 5,577,745.00 9,600,000.00 Inventories 152,100,000.00 Investments 0.00 0.00 NCA Held Sale 72,854.00 0.00 Other 239,747.00 5,700,000.00 Total Current Assets 32,259,010.00 452,500,000.00 Receivables 0.00 45,600,000.00 Inventories 0.00 0.00 Investments 0.00 197,800,000.00 PP&E 108,432,088.00 1,141,800,000.00 Intangibles(EXGW) 0.00 8,600,000.00 Goodwill 7,428,704.00 272,500,000.00 Future Tax Benefit 0.00 0.00 Other 99,411.00 4,100,000.00 Total NCA 115,960,203.00 1,670,400,000.00 Total Assets 148,219,213.00 2,122,900,000.00 Account Payable 19,727,810.00 172,000,000.00 Short-Term Debt 9,401,859.00 3,900,000.00 Provisions 4,686,028.00 37,700,000.00 NCL Held Sale 67,317.00 0.00 Other 350,000.00 7,700,000.00 Total Curr. Liabilities 34,233,014.00 221,300,000.00 Account Payable NLong-Term Debt 3,331,309.00 0.00 46,566,911.00 550,900,000.00 Provisions 5,792,745.00 128,700,000.00 Other 0.00 0.00 Total NCL 55,690,965.00 679,600,000.00 Total Liabilities 89,923,979.00 900,900,000.00 Share Capital 45,674,176.00 740,100,000.00 Reserves 914,264.00 (6,200,000.00) Retained Earnings Other Equity Convertible Equity 11,706,794.00 485,800,000.00 0.00 0.00 0.00 0.00 SE Held Sale 0.00 0.00 Outside Equity Total Equity 2,300,000.00 58,295,234.00 1,222,000,000.00 (e) Calculate each of these asset turnover ratios for ACF and ABC and complete the table below (Use closing balance to calculate and round up numbers to 2 decimal places 0.xx or x%). ACF АВС Operating Working Capital Turnover Accounts Receivable Turnover Inventory Turnover Accounts Payable Turnover Days' Accounts Receivable Days' Inventory (f) What are the primary components of operating working capital? (g) Suggest possible reasons for the difference in the operating working capital turnover of (h) Is there any difference in ACF and ABC's long-term assets management? List and calculate one appropriate financial ratio to explain.
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Domestic transfer pricing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS