You were asked to audit the beef cattle farm operations of ABC Company. The business owns a beef cattle farm, breeding and maturing cattle for future selling as the main business. The following assumptions apply: the company was created as at December 31, 2008 and at that time, 100 immature calves and 50 mature stock were acquired. Cattle become mature after one year. During the period under audit, all the movements and transactions took place at December 31 of each year. General information about the fair value for both mature and immature cattle, as well as costs to sell is as follows: Fair value per unit (immature) Fair value per unit (mature) 2008 100.00 2009 2010 2011 105.00 110.00 116.00 150.00 153.00 156.00 159.00 Cost to sell: Auctioneer's fee Transportation (total cost to be paid for any transaction) 5.00 0.30 5.25 5.50 5.80 0.32 0.34 0.36 For the period under audit, the movements pertaining to these immature cattle are as follows: Acquisitions in 2009 to 2011 are 105, 105, and 115 units, respectively; Newborn in 2009 to 2011 are 10, 10, and 20 units, respectively; No immature cattle were sold in any of these period. During the same period, the movements pertaining to these mature cattle are as follows: Sales of mature cattle from 2009 to 2011 are 20, 80, and 90 units, respectively; A couple of mature cattle were slaughtered from 2009 to 2011 at 30, 20, and 25 units, respectively; and No mature cattle were acquired in any of these period. Information about the carcasses is as follows (all carcasses are immediately sold): Fair value per unit 2008 180.00 2009 2010 189.00 198.00 208.00 2011 Cost to sell: Transportation (total cost to be paid for any transaction) 0.50 0.53 0.56 0.59 Cost to slaughter 4.00 4.20 4.42 4.64
You were asked to audit the beef cattle farm operations of ABC Company. The business owns a beef cattle farm, breeding and maturing cattle for future selling as the main business. The following assumptions apply: the company was created as at December 31, 2008 and at that time, 100 immature calves and 50 mature stock were acquired. Cattle become mature after one year. During the period under audit, all the movements and transactions took place at December 31 of each year. General information about the fair value for both mature and immature cattle, as well as costs to sell is as follows: Fair value per unit (immature) Fair value per unit (mature) 2008 100.00 2009 2010 2011 105.00 110.00 116.00 150.00 153.00 156.00 159.00 Cost to sell: Auctioneer's fee Transportation (total cost to be paid for any transaction) 5.00 0.30 5.25 5.50 5.80 0.32 0.34 0.36 For the period under audit, the movements pertaining to these immature cattle are as follows: Acquisitions in 2009 to 2011 are 105, 105, and 115 units, respectively; Newborn in 2009 to 2011 are 10, 10, and 20 units, respectively; No immature cattle were sold in any of these period. During the same period, the movements pertaining to these mature cattle are as follows: Sales of mature cattle from 2009 to 2011 are 20, 80, and 90 units, respectively; A couple of mature cattle were slaughtered from 2009 to 2011 at 30, 20, and 25 units, respectively; and No mature cattle were acquired in any of these period. Information about the carcasses is as follows (all carcasses are immediately sold): Fair value per unit 2008 180.00 2009 2010 189.00 198.00 208.00 2011 Cost to sell: Transportation (total cost to be paid for any transaction) 0.50 0.53 0.56 0.59 Cost to slaughter 4.00 4.20 4.42 4.64
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ABC Company is contemplating on closing its farm due to COVID 19. He wants you to determine the results of operation (net income or loss) for the four-year period (including 2008) from 2008 to 2011. Use up to two (2) decimal places.
Transcribed Image Text:You were asked to audit the beef cattle farm operations of ABC Company. The business owns a beef
cattle farm, breeding and maturing cattle for future selling as the main business. The following
assumptions apply: the company was created as at December 31, 2008 and at that time, 100
immature calves and 50 mature stock were acquired. Cattle become mature after one year. During
the period under audit, all the movements and transactions took place at December 31 of each year.
General information about the fair value for both mature and immature cattle, as well as costs to sell
is as follows:
2008
2009
2010
2011
Fair value per unit (immature)
Fair value per unit (mature)
100.00
105.00
110.00
116.00
150.00
153.00
156.00
159.00
Cost to sell:
Auctioneer's fee
5.00
5.25
5.50
5.80
Transportation (total cost to be paid for any transaction)
0.30
0.32
0.34
0.36
For the period under audit, the movements pertaining to these immature cattle are as follows:
Acquisitions in 2009 to 2011 are 105, 105, and 115 units, respectively;
Newborn in 2009 to 2011 are 10, 10, and 20 units, respectively;
No immature cattle were sold in any of these period.
During the same period, the movements pertaining to these mature cattle are as follows:
Sales of mature cattle from 2009 to 2011 are 20, 80, and 90 units, respectively;
A couple of mature cattle were slaughtered from 2009 to 2011 at 3o, 20, and 25 units,
respectively; and
No mature cattle were acquired in any of these period.
Information about the carcasses is as follows (all carcasses are immediately sold):
2008
2009
2010
2011
Fair value per unit
Cost to sell:
Transportation (total cost to be paid for any transaction)
Cost to slaughter
180.00
189.00
198.00
208.00
0.50
0.53
0.56
0.59
4.00
4.20
4.42
4.64
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