Calculate the accumulated depreciation on Machine A at 31 December 2022.
Calculate the carrying value of Machine B at 31 December 2022.
Calculate the original cost of Machine B at 31 December 2022.
Complete the schedule of non-current assets at 31 December 2023.
State the efficiency ratio that would be influenced by the outcome of the impairment review.
Calculate the net working assets to revenue ratio for 31 December 2023 from the year-end balances.
Assess how the altered formula would affect the company’s net working assets to revenue ratio (no calculations are needed).
Assess the effect the revised formula would have on the company’s perceived performance.
Advise the directors on whether average figures should be used when calculating the net working assets to revenue ratio in future, and justify your view.