Mr Lee, an Information Technology senior executive from mainland China, was under an employment contract in Malaysia with MSC Sdn Bhd since 1 November 2014. Since then,his pattern of stay until he left Malaysia permanently on 31 December 2019 was as follows:
Period of stay Place of stay
01 November 2014 to 31 December 2015 In Malaysia
01 January 2016 to 31 August 2016 In New Zealand, staying with his uncle
01 September 2016 to 19 September 2016 In HK visiting mother who was seriously ill
20 September 2016 to 03 February 2017 In Malaysia
04 February 2017 to 31 August 2017 In France to undertake a company project
01 September 2017 to 17 November 2018 In Malaysia
18 November 2018 to 30 November 2018 In China (13 days) for a vacation
01 December 2018 to 31 December 2019 In Malaysia
Required:
(a) Determine the residence status of Mr Lee for Years of Assessments 2014 to 2019 under the Income Tax Act (ITA) 1967.
(Your answer should state the relevant legislation under the ITA 1967)
P/S: EXAMPLE ANSWER (a) WILL BE LIKE THIS .
|
Year |
Total days present in Malaysia |
Status resident / non-resident |
Section Section 7(1)(a), Section 7(1)(b), Section 7(1)(c),Section 7(1)(d) |
Explanation |
|
2014 |
190 Days |
Resident |
Section 7(1)(a) |
jane is resident for the 3 immediately preceding basis years.Under this category, an individual can be a resident in Malaysia even though he might never actually have been in Malaysia at all during that basis year. |
(b) Distinguish the requirements between Sections 7(1)(b) and 7(1B) of the ITA 1967.
In: Accounting
Note - "?$" -means you need to imput the number (inside all of those tables)
Insufficient knowledge - what does that mean!?
15. Top of Form
Reformulating Allowance for Doubtful Accounts and Bad Debt Expense
Merck & Company reported the following from its 2016 financial statements.
|
$ millions |
2013 |
2014 |
2015 |
2016 |
|
|
Accounts receivable, net |
$7,666 |
$7,105 |
$6,965 |
$7,499 |
|
|
Allowance for doubtful accounts |
170 |
179 |
191 |
225 |
a. Compute accounts receivable gross for each year.
|
$ millions |
2013 |
2014 |
2015 |
2016 |
|
|
Accounts receivable, gross |
?$ |
?$ |
?$ |
?$ |
b. Determine the percentage of allowance to gross account
receivables for each year.
Round answers to two decimal places (ex: 0.02345 = 2.35%).
|
2013 |
2014 |
2015 |
2016 |
||||
|
% allowance |
?% |
?% |
?% |
?% |
|||
c. Assume that we want to reformulate the balance sheet and income
statement to reflect a constant percentage of allowance to gross
accounts receivables for each year. Compute the four-year average
and then reformulate the balance sheet and income statements for
each of the four years. Follow the process shown in Analyst
Adjustments 5.2 and assume a tax rate of 35%.
Four- year average of percentage of allowance to gross accounts receivables.
Round answer to two decimal places (ex: 0.02345 = 2.35%)
Answer. __%
Reformulate the balance sheet and income statements.
|
2013 |
2014 |
2015 |
2016 |
||
|
Adjusted allowance for doubtful accts. |
?$ |
?$ |
?$ |
?$ |
|
|
Balance Sheets Adjustments |
|||||
|
Allowance for doubtful accounts |
?$ |
?$ |
?$ |
?$ |
|
|
Accounts receivable, net |
?$ |
?$ |
?$ |
?$ |
|
|
Deferred tax liabilities |
?$ |
?$ |
?$ |
?$ |
|
|
Retained Earnings |
?$ |
?$ |
?$ |
?$ |
|
|
Income Statements Adjustments |
|||||
|
Bad debts expense |
?$ |
?$ |
?$ |
?$ |
|
|
Income tax expense at 35% |
?$ |
?$ |
?$ |
?$ |
|
|
Net Income |
?$ |
?$ |
?$ |
?$ |
Bottom of Form
In: Accounting
Calculating inflation using a simple price index
Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2014, 2015, and 2016.
The cost of each item in the basket and the total cost of the basket are shown for 2014.
Perform these same calculations for 2015 and 2016, and enter the results in the following table.
| Quantity in Basket |
2014 |
2015 |
2016 |
||||
|---|---|---|---|---|---|---|---|
| Price | Cost | Price | Cost | Price | Cost | ||
| (Dollars) | (Dollars) | (Dollars) | (Dollars) | (Dollars) | (Dollars) | ||
| Notebooks | 10 | 2 | 20 | 1 | --- | 3 | --- |
| Calculators | 1 | 50 | 50 | 54 | --- | 75 | --- |
| Large coffees | 200 | 1 | 200 | 1 | --- | 1 | --- |
| Energy drinks | 100 | 2 | 200 | 3 | --- | 4 | --- |
| Textbooks | 10 | 100 | 1,000 | 120 | --- | 150 | --- |
| Total cost | 1,470 | --- | --- | ||||
| Price index | 100 | --- |
? Suppose the base year for this price index is 2014. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2014 and 2015, the CSPI increased by____%. Between 2015 and 2016, the CSPI increased by |
||||
___%
Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply.
a.) Professors required each student to buy 10 textbooks, regardless of the price.
b.)Energy drinks became increasingly popular on college campuses between 2014 and 2016 due to significant improvements in flavor, but this quality change is hard to measure.
c.)A new mobile device for personal computing became available for purchase.
d.)As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers.
In: Economics
Retail Inventory Method
Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during 2016:
| Cost | Retail | |
|---|---|---|
| Inventory, January 1 | $28,800 | $41,500 |
| Purchases | 66,300 | 104,100 |
| Markups (net) | — | 1,700 |
| Markdowns (net) | — | 700 |
| Sales | — | 82,300 |
Required:
1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
| HARMES COMPANY | ||
| Calculation of ending inventory by retail inventory method | ||
| FIFO 2016 | ||
| Cost | Retail | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| $ | ||
| $ | ||
2. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Average cost. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
| HARMES COMPANY | ||
| Calculation of ending inventory by retail inventory method | ||
| Average Cost 2016 | ||
| Cost | Retail | |
| $ | $ | |
| $ | $ | |
| $ | ||
| $ | ||
3. Compute the ending inventory by the retail inventory method for the following cost flow assumption: LIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
| HARMES COMPANY | ||
| Calculation of ending inventory by retail inventory method | ||
| LIFO 2016 | ||
| Cost | Retail | |
| $ | $ | |
| $ | ||
| $ | $ | |
| $ | ||
| Ending inventory at LIFO cost | ||
| Beginning layer (as stated in data) | $28,800 | |
| New layer | ||
| Total | $ | |
4. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Lower of cost or market (based on average cost). Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
| HARMES COMPANY | ||
| Calculation of ending inventory by retail inventory method | ||
| Lower of Cost or Market (based on average cost) 2016 | ||
| Cost | Retail | |
| $ | $ | |
| $ | $ | |
| $ | ||
| $ | ||
In: Accounting
(12-8) Stevens Textile Corporation’s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 ______ Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $ 29,160 Income Statement for December 31, 2016 (Thousands of Dollars) Sales $36,000 Operating costs 32,440 Earnings before interest and taxes $ 3,560 Interest 460 Pre-tax earnings $ 3,100 Taxes (40%) 1,240 Net income $ 1,860 Dividends (45%) $ 837 Addition to retained earnings $ 1,023
a. Suppose 2017 sales are projected to increase by 15% over 2016 sales. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31, 2017. The interest rate on all debt is 10%, and cash earns no interest income. Assume that all additional debt in the form of a line of credit is added at the end of the year, which means that you should base the forecasted interest expense on the balance of debt at the beginning of the year. Use the forecasted income statement to determine the addition to retained earnings. Assume that the company was operating at full capacity in 2016, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also, assume that assets, spontaneous liabilities, and operating costs are expected to increase by the same percentage as sales. Determine the additional funds needed.
b. What is the resulting total forecasted amount of the line of credit?
In: Finance
Financing Deficit Garlington Technologies Inc.'s
2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
Cash $ 180,000
Accounts payable $ 360,000
Receivables 360,000
Notes payable 156,000
Inventories 720,000
Line of credit 0
Total current assets $1,260,000
Accruals 180,000
Fixed assets 1,440,000
Total current liabilities $ 696,000
Common stock 1,800,000
Retained earnings 204,000
Total assets $2,700,000
Total liabilities and equity $2,700,000
Income Statement for December 31, 2016
Sales $3,600,000
Operating costs 3,279,720
EBIT $ 320,280
Interest 18,280
Pre-tax earnings $ 302,000
Taxes (40%) 120,800
Net income 181,200
Dividends $ 108,000
Suppose that in 2017 sales increase by 15% over 2016 sales and that 2017 dividends will increase to $140,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 9%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
Garlington Technologies Inc.
Pro Forma Income Statement December 31, 2017
Sales $
Operating costs $
EBIT $
Interest $
Pre-tax earnings $
Taxes (40%) $
Net income $
Dividends: $
Addition to RE: $
Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017
Cash $
Receivables $
Inventories $
Total current assets $
Fixed assets $
Total assets $
Accounts payable $
Notes payable $
Accruals $
Total current liabilities $
Common stock $
Retained earnings $
Total liabilities and equity $
In: Accounting
Deepa Chungi wishes to develop an average, or index, that can be used to measure the general behavior of stock prices over time. She has decided to include 6 closely followed, high-quality stocks in the average or index. She plans to use August 15, 1987, her birthday, as the base and is interested in measuring the value of the average or index on August 15, 2013, and August 15, 2016. She has found the closing prices for each of the 6 stocks, A through F, at each of the 3 dates and has calculated a divisor that can be used to adjust for any stock splits, company changes, and so on that have occurred since the base year, which has a divisor equal to 1.00.
a. Using the data given in the table,
LOADING...
, calculate the market average, using the same methodology used to calculate the Dow averages, at each of the 3
dateslong dash—August
15, 1987, 2013, and 2016.
b. Using the data given in the table and assuming a base index value of 10 on August 15, 1987, calculate the market index, using the same methodology used to calculate the S&P indexes, at each of the 3 dates.
c. Use your findings in parts a and b to describe the general market
conditionlong dash—bull
or
bearlong dash—that
existed between August 15, 2013, and August 15, 2016.
d. Calculate the percentage changes in the average and index values between August 15, 2013, and August 15, 2016. Why do they differ?
|
tock |
August 15, 2016 |
August 15, 2013 |
August 15, 1987 |
|||
|
A |
$46.77 |
$39.27 |
$49.01 |
|||
|
B |
$36.43 |
$36.4836.48 |
$9.26 |
|||
|
C |
$20.88 |
$23.72 |
$6.29 |
|||
|
D |
$58.01 |
$60.53 |
$25.08 |
|||
|
E |
$81.35 |
$70.09 |
$45.33 |
|||
|
F |
$31.06 |
$29.11 |
32.28 |
|||
|
Divisor |
0.68 |
0.740 |
1.00 |
|||
In: Finance
BG Wholesalers is developing its annual financial statements at December 31, 2016. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:
| 2016 | 2015 | ||||||
| Balance sheet at December 31 | |||||||
| Cash | $ | 39,400 | $ | 31,600 | |||
| Accounts receivable | 36,300 | 31,600 | |||||
| Merchandise inventory | 45,000 | 40,500 | |||||
| Property and equipment | 125,600 | 102,700 | |||||
| Less: Accumulated depreciation | (34,000) | (27,100) | |||||
| $ | 212,300 | $ | 179,300 | ||||
| Accounts payable | $ | 40,300 | $ | 31,600 | |||
| Accrued wage expense | 3,500 | 4,000 | |||||
| Note payable, long-term | 47,500 | 52,900 | |||||
| Contributed capital | 94,400 | 74,700 | |||||
| Retained earnings | 26,600 | 16,100 | |||||
| $ | 212,300 | $ | 179,300 | ||||
| Income statement for 2016 | |||||||
| Sales | $ | 137,000 | |||||
| Cost of goods sold | 87,000 | ||||||
| Other expenses | 39,500 | ||||||
| Net income | $ | 10,500 | |||||
| Additional Data: | |
| a. | Bought equipment for cash, $22,900. |
| b. | Paid $5,400 on the long-term note payable. |
| c. | Issued new shares of stock for $19,700 cash. |
| d. | No dividends were declared or paid. |
| e. | Other expenses included depreciation, $6,900; wages, $20,500; taxes, $6,200; other, $7,200. |
| f. |
Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. |
| Required: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1. |
Prepare the statement of cash flows for the year ended December 31, 2016, using the indirect method. (List cash outflows as negative amounts.)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
Problem 12-09
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
| Cash | $ 180,000 | Accounts payable | $ 360,000 | |
| Receivables | 360,000 | Notes payable | 156,000 | |
| Inventories | 720,000 | Line of credit | 0 | |
| Total current assets | $1,260,000 | Accruals | 180,000 | |
| Fixed assets | 1,440,000 | Total current liabilities | $ 696,000 | |
| Common stock | 1,800,000 | |||
| Retained earnings | 204,000 | |||
| Total assets | $2,700,000 | Total liabilities and equity | $2,700,000 |
Income Statement for December 31, 2016
| Sales | $3,600,000 |
| Operating costs | 3,279,720 |
| EBIT | $ 320,280 |
| Interest | 18,280 |
| Pre-tax earnings | $ 302,000 |
| Taxes (40%) | 120,800 |
| Net income | 181,200 |
| Dividends | $ 108,000 |
Suppose that in 2017 sales increase by 5% over 2016 sales and that 2017 dividends will increase to $150,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 14%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
| Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 |
|||
| Sales | $ | ||
| Operating costs | $ | ||
| EBIT | $ | ||
| Interest | $ | ||
| Pre-tax earnings | $ | ||
| Taxes (40%) | $ | ||
| Net income | $ | ||
| Dividends: | $ | ||
| Addition to RE: | $ | ||
| Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 |
|||
| Cash | $ | ||
| Receivables | $ | ||
| Inventories | $ | ||
| Total current assets | $ | ||
| Fixed assets | $ | ||
| Total assets | $ | ||
| Accounts payable | $ | ||
| Notes payable | $ | ||
| Accruals | $ | ||
| Total current liabilities | $ | ||
| Common stock | $ | ||
| Retained earnings | $ | ||
| Total liabilities and equity | $ | ||
In: Finance
Problem 12-09
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
| Cash | $ 180,000 | Accounts payable | $ 360,000 | |
| Receivables | 360,000 | Notes payable | 156,000 | |
| Inventories | 720,000 | Line of credit | 0 | |
| Total current assets | $1,260,000 | Accruals | 180,000 | |
| Fixed assets | 1,440,000 | Total current liabilities | $ 696,000 | |
| Common stock | 1,800,000 | |||
| Retained earnings | 204,000 | |||
| Total assets | $2,700,000 | Total liabilities and equity | $2,700,000 |
Income Statement for December 31, 2016
| Sales | $3,600,000 |
| Operating costs | 3,279,720 |
| EBIT | $ 320,280 |
| Interest | 18,280 |
| Pre-tax earnings | $ 302,000 |
| Taxes (40%) | 120,800 |
| Net income | 181,200 |
| Dividends | $ 108,000 |
Suppose that in 2017 sales increase by 5% over 2016 sales and that 2017 dividends will increase to $150,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 14%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
| Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 |
|||
| Sales | $ | ||
| Operating costs | $ | ||
| EBIT | $ | ||
| Interest | $ | ||
| Pre-tax earnings | $ | ||
| Taxes (40%) | $ | ||
| Net income | $ | ||
| Dividends: | $ | ||
| Addition to RE: | $ | ||
| Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 |
|||
| Cash | $ | ||
| Receivables | $ | ||
| Inventories | $ | ||
| Total current assets | $ | ||
| Fixed assets | $ | ||
| Total assets | $ | ||
| Accounts payable | $ | ||
| Notes payable | $ | ||
| Accruals | $ | ||
| Total current liabilities | $ | ||
| Common stock | $ | ||
| Retained earnings | $ | ||
| Total liabilities and equity | $ | ||
In: Finance