The University of Hong Kong Midterm Examination
THE UNIVERSITY OF HONG KONG
School of Economics and Finance
FINA1001: Financial Statement Analysis
Second Semester 2009-2010
Dr. Kam-Ming Wan
Midterm Examination (90 minutes)
April 1, 2010 10:40a.m.(12:10p.m.
Candidates may use any self-contained, silent, battery-operated and pocket-sized calculator. The calculator should have numeral-display facilities only and should be used only for the purposes of calculation. It is the candidate’s responsibility to ensure that his calculator operates satisfactorily.
Candidates must record the name and type of their calculators on the front page of their examination scripts.
Name: _______________________
University ID: _______________________
Calculator Brand and Model: _______________________
Grading policies:
1. There are in total five questions.
2. Write your answers in your answer book and start each question on a fresh page. Please write legibly.
3. You must return your exam and answer book or your exam will not be graded.
4. SHOW ALL YOUR STEPS OR NO CREDIT WILL BE GIVEN.
1. (25 points) Analysis of Depreciation
Candy Coffee purchased a professional coffee machine on January 1, 2008. The management provides the following information about the asset and its acquisition:
|Purchase Price |$100,000 |
|Residual Value |$20,000 |
|Estimated useful Life |4 years |
|Estimated service hours | 4,000 |
|Estimated production in units | 80,000 cups of
School of Economics and Finance
FINA1001: Financial Statement Analysis
Second Semester 2009-2010
Dr. Kam-Ming Wan
Midterm Examination (90 minutes)
April 1, 2010 10:40a.m.(12:10p.m.
Candidates may use any self-contained, silent, battery-operated and pocket-sized calculator. The calculator should have numeral-display facilities only and should be used only for the purposes of calculation. It is the candidate’s responsibility to ensure that his calculator operates satisfactorily.
Candidates must record the name and type of their calculators on the front page of their examination scripts.
Name: _______________________
University ID: _______________________
Calculator Brand and Model: _______________________
Grading policies:
1. There are in total five questions.
2. Write your answers in your answer book and start each question on a fresh page. Please write legibly.
3. You must return your exam and answer book or your exam will not be graded.
4. SHOW ALL YOUR STEPS OR NO CREDIT WILL BE GIVEN.
1. (25 points) Analysis of Depreciation
Candy Coffee purchased a professional coffee machine on January 1, 2008. The management provides the following information about the asset and its acquisition:
|Purchase Price |$100,000 |
|Residual Value |$20,000 |
|Estimated useful Life |4 years |
|Estimated service hours | 4,000 |
|Estimated production in units | 80,000 cups of