Question 1(a) Hilux Sdn Bhd imported a machinery to be used in its factory. The costs incurred were: Invoice price of machinery 500‚000 Insurance on shipment 200‚000 Import duties and taxes 50‚000 Delivery costs 70‚000 Installation charges 10‚000 Dismantling and restoring the building site 30‚000 General administrative cost 20‚000 Operating losses before commercial production 50‚000 Interest charges paid to supplier of plant for deferred credit
Premium Lease Leasing Finance lease
This paper will compare and contrast lease versus purchase options‚ examine debt and equity financing‚ provide examples for each source of financing‚ and identify which alternative capital structure is more advantageous. Lease vs. Purchase Options: Compare and Contrast In business the decision to lease or purchase is a critical element of strategic management. Equally important is the way in which the asset will be used. Operating leases are most often used by organizations looking
Premium Finance Corporate finance Debt
Off balance sheet financing is financing from sources other than debt or equity offerings‚ such as joint ventures‚ research and development partnership and operating leases. For complex institutions such as banks‚ they increase their use of off shore subsidiaries and swap transactions to avoid disclosing liabilities. In other words‚ off balance sheet accounting is a process which a business creates what is practically a debt that it must pay off‚ but the debt is accounted as another type of transaction
Premium Finance lease Balance sheet Lease
finance lease) to earn rentals or for capital appreciation or both‚ rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business. A property interest that is held by a lessee under an operating lease may be classified and accounted for as investment property provided that: (a) the rest of the definition of investment property is met; (b) the operating lease is accounted for as if it were a finance lease in accordance
Premium Lease International Financial Reporting Standards Investment
Simulation review paper Cecilia McDaniel HCS 405 May 04‚ 2011 LaDonna Latney Battle Simulation review paper * Cecilia McDaniel will discuss some financial accounting options for the Elijah Heart Center through a working capital shortage‚ and evaluate some funding options for acquiring medical equipment‚ and capital expansion. * Cecilia McDaniel goal is to decide the most effective strategy to solve the cash flow situation at Elijah Heart Center. However‚ the two major factors put
Premium Cash flow Patient Hospital
07/03/2012 McCloud Winery – Questions 1. Should the leased building be accounted as an asset? No‚ the lease would be considered an operating lease‚ on which the expense would be accrued day by day as the asset (building) is used. To determine this is in fact an operating lease‚ the life of the lease should be less than 75% of the useful life of the asset being leased. For instance‚ this is a 10 year lease‚ which is less than the economic life of a 30 year asset. The rental payments would be expensed as
Premium Balance sheet Generally Accepted Accounting Principles Lease
2: Leases (practical) (10 marks) On 1 July 2011‚ Slade Ltd leased a machine from Carter Ltd. The machine had a fair value of $840 000 at that date. The terms and conditions of the lease are: The lease term is 5 years. An annual payment of $200 000 is to be made by Slade to Carter. This payment includes a charge for insurance costs in the amount of $5000. The asset has a 6 year useful life; the salvage value at the end of this time is zero. The implicit interest rate on the lease is 10%
Premium Lease Finance lease Net present value
Name: ID: Lab Work 6-2 on ERD – Chapter 6 Consider the following processing requirements description of Dammam Electronic Hardware Management IS application: The Xtra electronic hardware company wishes to design and create a database for the sales IS application. A customer makes a purchase order for one or more hardware products such a computer‚ printer‚ iPod‚ etc. Once an order is completed an invoice is generated‚ then the customer is requested
Premium Entity-relationship model Relationship
CASE PROBLEM 3 : TRUCK LEASING STRATEGY From the information given‚ let X = number of trucks obtained from a short term lease in months Y = number of trucks obtained from the long term lease The monthly fuel costs are $100‚ and current trucks available are 20. Make the total monthly fuel costs of $2‚000. Length of lease | Cost per month ($) | 1 | 4‚000 | 2 | 3‚700 | 3 | 3‚225 | 4 | 3‚040 | The monthly costs for short term leased trucks are as follow‚ the calculation below include
Premium Truck Leasing Lease
involvement of the Southern judicial system and individual Northern and Southern elites‚ but also the involvement of the corporation and reinstitution of slavery within a corporate context. This paper will examine our main focus—Was the US convict lease system “slavery” by another name? The affects of the Civil War were devastating to the Southern economy. Before the war‚ the South was the richest section of the country. Seventy five percent of American millionaires were Southerners and 24 of the
Premium American Civil War Southern United States African American