1 / 5

Sales and Repurchases

Sales and Repurchases. 4(b)( i ) (legal form) Wardle Income statement For the year end 31 Mar 2010 31 Mar 2012 Sales                           6m 10m Cost of sales              7m 5m 6m 7,986

alayna
Download Presentation

Sales and Repurchases

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Sales and Repurchases • 4(b)(i) (legal form) • Wardle • Income statement • For the year end • 31 Mar 2010 31 Mar 2012 • Sales                          6m 10m • Cost of sales             7m5m6m 7,986 • Cross profit              (1m) 1m   4m 2,014 • Interest expense        0 1.986m • (Partial) Net income before tax      

  2. Sales and Repurchases • B(ii)Wardle (substance) option 2: • Income statement • For the year end • 31 Mar 2010 2011 31 Mar 2012 • Sales           6m 0m 0m10m • Cost of sales    5m 0m 0m7.986m 5m • Gross profit      1m 0m5m • Interest exp0.6m 0.66m 0.726m

  3. Inventory risk Selling price Cashier Service & space C 100% $100 Sales 100 Cost of sales Expenses 20 NFL 80% $80 Department Store 20% $20 1 C Sales Cost of sales Sales Cost of sales Distributor NFL 2 Transfer the risk and rewards

  4. NFL Option 1: Bossini Z warehouse (product store here) FS: Sales to bossini customer Cost of sales Bossini Z warehouse (sell to Z warehouse by bossini) Option 2: FS: Sales to z Cost of sales FS: Sales Cost of sales from Bossini

  5. NFL Option 1: Bossini NFL Z warehouse Department store (product store here) FS: Sales to bossini customer Cost of sales Bossini NFL Z warehouse (sell to Z warehouse by bossini) Option 2: FS: Sales to z Cost of sales FS: Sales Cost of sales from Bossini

More Related