CONFIDENTIAL AC/SEP 2011/AIS280/CAC230 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE COURSE CODE EXAMINATION TIME COMPUTERIZED ACCOUNTING/ COMPUTERISED ACCOUNTING AIS280/CAC230 SEPTEMBER 2011 3 HOURS INSTRUCTIONS TO CANDIDATES 1. This question paper consists of four (4) parts : PART A (20 Questions) PART B (3 Questions) PART C (3 Questions) PART D (2 Questions) 2. Answer ALL questions from all four (4) parts : i) Answer PART A in the Objective Answer Sheet. ii) Answer PART B‚ C and D in the
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Corporate Finance Case 1 1. To calculate the present value of future cash flow in 2013‚ we first calculate the free cash flow between 2014-2020: Table 1: Free cash flow of 2014-2020 (in $million) After-tax profits Depreciation Gross investment in fixed assets Investment in net working capital Free cash flow 2014 2015 2016 2017 2018 2019 2020 5.25 2.40 5.70 3.10 3.00 3.12 3.40 3.17 4.35 3.26 6.00 3.44 7.60 3.68 (4.26) (10.50) (3.34) (3.65) (4.18) (5.37) (6.28) (1.39) (0.60)
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Cr. Rs.‚ the plant wont be operational at half the capacityS The Capex decisions are irreversible Projected P&L : Less Sales Raw Materials Utilities Employee Cost Depreciation Sales and Distn. Repair and maintenance + Administrative Exp. Int. on Working capital Total Cost PBT Tax PAT PAT + Depreciation Non manufacturing Expenses x Cash outflow‚ Inflow: Cash outflow – Investment‚ Incremental working capital (as all the capacity won’t be utilised in some cases) Cash Inflow
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expected to provide services to the company for a number of years. Except for land‚ plant assets decline in value over their useful lives. Plant assets are usually subject to depreciation. Depreciation methods are not covered in detail in this paper. The book value of plant assets is the cost of the asset less accumulated depreciation. This amount is not an indication of the market value of the asset‚ which may be much higher than the book value in most cases. The difference between the market and book
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income earned but not yet received 2. Accrued Expense – expenses incurred but not yet paid 3. Deferred Income – income received but not yet earned 4. Prepaid Expense – expenses paid but not yet paid Also‚ adjusting entries are made for: 5. Depreciation Expense‚ and 6. Doubtful Accounts Expense or Bad Debts Expense Composition of an Adjusting Entry Adjusting entries affect at least one nominal account and one real account. A nominal account is an account whose balance is measured from period
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PPE – Cost Problem 11 – 1 On August 1‚ 2012‚ Benigno Company purchased a new machinery on a deferred payment basis. A down payment of P 500‚000 was made and 4 monthly instalments of P 1‚250‚000 each are to be made starting September 1‚ 2012. The cash equivalent price of the machine was P 4‚750‚000. Benigno incurred and paid installation costs amounting to P 150‚000. What si the amount to be capitalized as a cost of the machine? a. P 4‚750‚000 b. P 5‚500‚000 c. P 4‚900‚000
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class. The machinery is expected to have a salvage value of $25‚000 after 4 years of use. The new line would generate incremental sales of 1‚250 units per year for four years at an incremental cost of $100 per unit in the first year‚ excluding depreciation. Each unit can be sold for $200 in the first year. The sales price and cost are expected to increase by 3% per year due to inflation. Further‚ to handle the new line‚ the firm’s net operating working capital would have to increase by an amount
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PYROLYSIS PLANT PROPOSED FINANCIAL ASPECTS ( 2 ton conversion per day--3 batches of 8 hours each‚ Assumption : 26 working days per month ) A. FIXED CAPITAL (i) Land and Building Deposit for 2250sqft 550‚000.00 Total 550‚000.00 (ii) Machinery & Equipment SI.No. Description Qty. Rate (Rs.) Value (Rs.) 1 2 tons conv. Machine 1 6‚820‚000.00 6‚820‚000.00 2 Office Furniture 10‚000.00 Taxes‚ licensing expenses‚ trasnportation
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A Guide to Earnings and Financial Reporting Quality A Guide to Earnings and Financial Reporting Quality Quality of reported financial information is a critical element in evaluating financial statement data. The higher the quality of financial reporting‚ the more useful the information is for business decision making. 5-2 A Guide to Earnings and Financial Reporting Quality There are a number of areas on the earnings statement that provide management with opportunities for influencing the
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rate of return on their investment of capital in the proposed new bank‚ are they likely to proceed with their charter application given the above estimates? 2. Do problem 1 under the following assumptions: a tax rate of 30% and straight line depreciation of physical assets. 3. Hampton Savings Bank is considering the establishment of a new branch office at the corner of Queen Street and Victoria Boulevard. The savings association’s economics department projects annual operating revenues of $1
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