Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019.

Additional information:

1. An unpaid salaries and wages as at 31 December 2019 is RM18,000.
2. A tenant of an office space has not yet pay a rental for December 2019 amounting RM3,000.
3. The company returned defect merchandise bought from supplier and was refunded RM3,500 in cash. The company use perpetual inventory system and this transaction has not yet been recorded.
4. The company received RM35,000 in cash from a customer on 30 December 2019 and recorded as sales revenue. However the company only managed to supply the merchandise on 3 January 2020.
5. Payment for a one-year insurance coverage was made on 1 July 2019.
6. Annual depreciation for building and equipment are based on straight line depreciation basis over a period of 50 years and 10 years respectively with no scrap value.
7. 30% of the notes payable is due next year. The note payable interest rate is 8% per annum. Prepare a Statement of Financial Position for Jasa Tading Bhd as at 31 December 2019 according to MFRS 101 Presentation of Financial Statement.

A: Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, plant and equipment in order of land, buildings and equipment. Round answers to 0 decimal places, e.g. 5,275.)

B: Prepare an income statement for the month of May 31. (Round answers to 0 decimal places, e.g. 5,275.)

The Skyline Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as follows.

In addition to those accounts listed on the trial balance, the chart of accounts for Skyline Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

GetMyFood, Inc. has developed an application for cell phones aimed toward consumers who live in more rural areas where there are few delivery options for take-out food.   The app connects local taxi drivers with the larger restaurant food delivery services in nearby areas to extend the range of home meal delivery service.

The company expects to generate revenues of $2000 (figures in thousands) in the first year (2020) with a general costs of services sold of $1200 (figures in thousands.) The company expects to see a sharp increase in the revenues earned after the first year as the new service gains recognition but believes that the life-cycle of the product will be relatively short as market research has shown that the business model will be most successful in areas that are more rural but still relatively close to larger population centers. Given the general demographic trend in population growth, the company believes that their target market will diminish over time as more standard delivery services become available.  

The company estimates the following growth rate for revenue, costs, and SG&A over the next five years:

The have also forecasted the following items for working capital:

Taxes are assumed to be 34% per year. The initial outlay for software development is estimated to be $1000.

You have been hired as a financial consultant to determine the estimated free cash flows to the firm for GetMyFood, Inc.

Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realizeall of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August.

1. 2-a. Calculate the Sales Revenue and Cost of Goods Sold for the transactions listed above (but exclude Service Revenue for spa services).

1. 2-b. What is Nicole’s Getaway Spa’s gross profit percentage (excluding Service Revenue)? (Round your answer to 1 decimal place.)

Managers at Acme Doohickey Co. are considering two projects. Project A: purchase and operation of a new machine, called the Starpunch, for manufacturing Acme doohickeys. The life of this project is three years. Project B: purchase and operation of a new machine, called the Sunspot, for manufacturing Acme doohickeys. The life of this project is two years. The machines have identical capacity and produce the same doohickey. The company only has floor space in its machinists’ shop for one machine. Assume that the appropriate discount rate in 7%, compounded annually. Identify which project, if either, managers should accept, and explain why. Table: Expected Cash Flows for Projects A and B Year A revenue A costs A NCF B revenue B costs B NCF 0 ($29,000) ($23,000) 1 $20,000 ($9,000) $20,000 ($7,000) 2 $20,000 ($8,000) $20,000 ($6,000) 3 $20,000 ($8,000) Note: the table lists net revenue and net cost for each project and each year. But the table is incomplete; you will need to calculate the Net Cash Flows. Group of answer choices Accept Project B. Its NPV > 0. Also, when both of the project lifetimes are correctly extended to 6 years, the Project B NPV = $3,632 which is greater than the Project A NPV = $2,828. Accept Project A. Its NPV > 0. Also, when both of the project lifetimes are correctly extended to 6 years, the Project A NPV = $1,557 which is greater than the Project B NPV = $1,378. Accept Project B. Its NPV > 0. Also, when both of the project lifetimes are correctly extended to 6 years, the Project B NPV = $4,624 which is greater than the Project A NPV = $3,923. Reject both projects. When both of the project lifetimes are correctly extended to 6 years, the NPV for each project is negative. Accept Project B. Its NPV > 0. In addition, its cost in each year is less than the corresponding cost for Project A.

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data.
  

Required:
Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $34,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,200 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue $ 25,207 Net sales 17,993 Total revenue 43,200 Cost of goods sold $ 14,852 Depreciation expense—Office equipment 310 Depreciation expense—Computer equipment 1,250 Wages expense 2,850 Insurance expense 525 Rent expense 1,975 Computer supplies expense 1,285 Advertising expense 540 Mileage expense 310 Repairs expense—Computer 860 Total expenses 24,757 Net income $ 18,443 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Dec. 31, 2019 Assets Cash $ 74,567 $ 54,312 Accounts receivable 24,167 5,168 Inventory 614 0 Computer supplies 2,085 510 Prepaid insurance 1,060 1,655 Prepaid rent 825 825 Total current assets 103,318 62,470 Office equipment 7,500 7,500 Accumulated depreciation—Office equipment (620 ) (310 ) Computer equipment 19,700 19,700 Accumulated depreciation—Computer equipment (2,500 ) (1,250 ) Total assets $ 127,398 $ 88,110 Liabilities and Equity Accounts payable $ 0 $ 1,120 Wages payable 895 530 Unearned computer service revenue 0 1,500 Total current liabilities 895 3,150 Equity Common stock 104,000 77,000 Retained earnings 22,503 7,960 Total liabilities and equity $ 127,398 $ 88,110 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $27,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $3,900 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)

Closing entries:

Select one:

a. reduce the number of permanent accounts.

b. are prepared before the unadjusted trial balance.

c. cause the revenue and expense accounts to have zero balances.

d. summarise the activity in every account.

An accumulated depreciation account:

Select one:

a. has a normal credit balance.

b. increases on the debit side.

c. is offset against total revenue on the income statement.

d. is a contra liability account.

In a service business, revenue is considered earned:

Select one:

a. when the service is performed.

b. at the end of the month.

c. when cash is received.

d. at the end of the year.

Indicate how a payment of cash for cleaning services affects the basic accounting equation.

Select one:

a. Increase assets, cash and decrease in equity, cleaning expenses.

b. Decrease assets, cash and increase in equity, cleaning expenses.

c. Increase assets, cash and increase in equity, cleaning expenses.

d. Decrease assets, cash and decrease in equity, cleaning expenses.

When preparing closing journal entries, the interest income account is closed:

Select one:

a. to the Profit and loss summary account.

b. to the interest income account.

c. directly to the Capital account.

d. directly to an accounts receivable account.

If services are provided for credit, then:

Select one:

a. liabilities will increase.

b. Equity will increase.

c. liabilities will decrease.

d. assets will decrease.

A T account is:

Select one:

a. a special account used instead of a journal.

b. used for accounts that have only a debit balance.

c. a way of depicting the basic form of an account.

d. a special account used instead of a trial balance.

f the totals of a trial balance are not equal, it could be due to:

Select one:

a. recording the transaction more than once.

b. a failure to record or to post a transaction.

c. recording the same erroneous amount for both the debit and credit parts of a transaction.

d. an error in calculating the account balances

A power company operates three power generation plants. One is a wind plant, and the other two consume a combination of Fuel 1 and Fuel 2, emitting carbon dioxide in the process. In addition, all three plants require maintenance. The amount of fuel consumed (in Mg), maintenance required (in person-hours), carbon dioxide (CO2) emitted (in Mg), and power generated (in MWh) per day of operation is as follows: Maintenance Fuel 1 Fuel 2 CO2 Power Plant Required Required Required Emitted Produced 1 20 0 0 0 20 2 13 10 15 12 32 3 18 30 40 29 40 Each MWh of power can be sold at £121 and there is no limit on the amount that can be sold. Over its next planning period, the company has 230 person-hours for maintenance, 75 Mg of Fuel 1, and 90 Mg of Fuel 2 available.

(a) Due to environmental regulations, they cannot emit more than 200Mg of CO2 in this period. The company wants to know how to operate its plants to generate as much revenue as possible (you may assume that there is no limit on the number of days a plant can operate in this period). Give a linear program that models this problem and state what each of your variables is meant to represent. You do not need to solve this program. [11]

(b) Suppose now that the company can emit more than 200Mg of CO2, but now loses £55 of revenue for each Mg emitted after the first 200Mg because it must purchase “CO2 credits”. The other resource constraints remain as stated. The company now wants to know how to operate its plants to generate as much revenue as possible (you may assume that there is no limit on the number of days that a plant can operate in this period). Give a linear program that models this problem. You do not need to solve this program.

Monster Inc., the maker of personal computer games has been contacted by Hot Stuff Inc., which has developed a new technology for personal computer gamers which provides a new challenge for gamers. The new technology consists of a seat pad for the gamer’s chair which is connected to a control unit which is connected to the personal computer. When the gamer makes an error while playing Daytona 500 he/she receives a “mild” electric shock through the seat pad. The new technology, which has received extremely positive reviews from a panel of gamers, consists of the Daytona 500 game CD, the seat pad, the control unit and cables. In tests, by Monster Inc., the new technology has performed flawlessly, is considered safe and Monster Inc. is considering licensing Hot Stuff’s new gamer technology. The following cost information pertains to the new technology:

Hot Stuff Daytona 500 Software License .................... $200,000

New Equipment To Produce Seat Pads........................ $50,000

Advertising and promotion .......................................... $150,000

Material & Royalties “Daytona 500” Game (per 100 CDs) . $500

Material & Labor For Seat Pad (per 10 pads) .................... $150

Control Unit And Cables (per unit) .........................................$5

Market research estimates that the market for the new Daytona 500 game and “Hot Stuff” is 1,000,000 units at a retail price of $75, which includes the game CD, seat pad, control unit and cables.   

Monster Inc. traditionally sells through major retailers like CompUSA. The retailer’s traditional margin is 20%.

** PLEASE WRITE FORMULAS USED

a. How much revenue does Monster Inc. receive for each unit sold?


b. What is Monster Inc.’s contribution margin per unit?


c. What is the break-even volume in units?_____________________________


d. How many units did Monster sell if Total Sales Revenue = $1,000,000?   


e. What is the profit if Monster’s Total Sales Revenue = $1,000,000?