Question 1:
(a) What type of business structure is Mayne Pharma? (Sole proprietor, partnership, private company or public company?)
(b) Identify 3 features of Mayne Pharma's financial statements that support your choice.
(c) Refer to Mayne Pharma's 2013 statement of financial position and identify the 2 items that have the same dollar value.
(d) Explain why these 2 items have the same dollar value.
(e) Why are Mayne Pharma's financial statements referred to as "consolidated" statements?
Question 2:
(a) Name the 3 components of Equity shown on Mayne Pharma's 2013 statement of financial position and explain how each has arisen. (You must be specific - do not simply provide a general description of equity components.)
(b) What was the dollar amount of Mayne Pharma's total equity in 2012 and in 2013?
(c) Which financial statement explains the change in total equity between 2012 and 2013?
(d) Explain this change in your own words.
Question 3:
(a) What is the dollar amount shown on Mayne Pharma's 2013 statement of financial position for 'Inventories'?
(b) Refer to Note 1 (Significant Accounting Policies) and explain the valuation method used by Mayne Pharma for each type of inventory held.
(c) What is the dollar amount shown on Mayne Pharma's 2013 statement of financial position for 'Trade and Other Receivables'?
(d) Now refer to Note 10 (Trade and Other Receivables) and identify the amount that was actually owed to Mayne Pharma, in relation to trade and other receivables, as at 30 June 2013.
(e) Why does this amount differ from the amount shown on the 2013 statement of financial position?
Question 4:
(a) What is the dollar amount shown on Mayne Pharma's 2013 statement of financial position for 'Property, Plant and Equipment' (PPE)?
(b) Refer to Note 14 (Property, Plant and Equipment) and list the 4 different classes of PPE carried by Mayne Pharma.
(c) Identify the depreciation method and estimated useful life adopted by Mayne Pharma for each class of PPE (see Note 1 - Significant Accounting Policies).
(d) How much depreciation expense was recorded for 'Plant and Equipment' in 2013 (see Note 14)?
(e) What is the total amount of depreciation that has been recorded for 'Plant and Equipment' since it was acquired (see Note 14)?
(f) What is the difference between "depreciation", "amortisation" and "impairment"?
Question 5:
(a) In general terms (that is, not with reference to Mayne Pharma) explain what "goodwill" represents and how it is calculated.
(b) Refer to Note 15 (Intangible Assets and Goodwill) and identify the 4 classes of identifiable intangible assets held by Mayne Pharma and the net carrying amount for each as at 30 June 2013.
(c) What does "net carrying amount" refer to (i.e. how has it been calculated)?
Question 6:
(a) In general terms, what are "provisions"?
(b) What types of current and noncurrent provisions has Mayne Pharma recorded in 2013 (see Note 19 - Provisions)?
Question 7:
(a) What is the total number of shares that have been issued by Mayne Pharma as at 30 June 2013 (see Note 20 - Contributed Equity)?
(b) How much profit was earned by Mayne Pharma's shareholders, on a per share basis, in 2013?
(c) How much of this profit did the shareholders actually receive (in cash), on a per share basis, in 2013?
(d) What is the reported dollar amount for Mayne Pharma's 'Net cash flows from operating activities' for 2013?
(e) Explain (in general terms) 3 possible reasons why this figure is so much higher than Mayne Pharma's net profit after tax for 2013.
(f) Now refer to Note 24 (Notes to the Consolidated Statement of Cash Flows) and identify the 3 largest contributors to this difference.
(g) Observe that Mayne Pharma has reported negative 'Net cash flows from investing activities' for 2013. Explain whether, in your opinion, these negative net cash flows represent a potential problem for Mayne Pharma.