Below is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019.
|
Dr. (RM) |
Cr. (RM) |
|
|
Account receivables |
109,658 |
|
|
Buildings |
1,372,680 |
|
|
Cash |
1,314,264 |
|
|
Cost of goods sold |
856,152 |
|
|
Equipment |
504,000 |
|
|
Patent |
60,276 |
|
|
Income tax expense |
60,340 |
|
|
Inventory |
551,950 |
|
|
Land |
766,800 |
|
|
Maintenance and repair expenses |
11,953 |
|
|
Office expense |
14,086 |
|
|
Prepaid insurance |
48,000 |
|
|
Property tax expense |
1,680 |
|
|
Salaries and wages expenses |
25,334 |
|
|
Sales returns and allowance |
1,176 |
|
|
Accounts payable |
36,936 |
|
|
Accumulated depreciation – buildings |
137,268 |
|
|
Accumulated depreciation - equipment |
252,000 |
|
|
Deferred tax liability |
21,600 |
|
|
Gain on revaluation of properties |
29,640 |
|
|
Gain on sale of land |
109,560 |
|
|
Gain on translation of foreign operations |
5,880 |
|
|
Notes payable |
194,400 |
|
|
Rent revenue |
57,600 |
|
|
Retained earnings |
912,720 |
|
|
Revaluation reserve |
560,640 |
|
|
Translation of foreign operations reserve |
263,160 |
|
|
Sales revenue |
2,238,180 |
|
|
Share capital |
878,765 |
|
|
5,698,349 |
5,698,349 |
Additional information:
In: Accounting
The marks on a statistics midterm test are normally distributed with a mean of 75 and a standard deviation of 6. What is the probability that a sample of 50 exams has a sample mean between 74 and 75?
a. 0.3810
b. 0.1210
c. 0.4641
d. 0.3790
e. 0.1190
In: Statistics and Probability
An unknown radioactive element decays into non-radioactive substances. In 340 days the radioactivity of a sample decreases by 37 percent. (a) What is the half-life of the element? (b) How long will it take for a sample of 100 mg to decay to 74 mg? time needed: (days)
In: Advanced Math
In this problem, assume that the distribution of differences is
approximately normal. Note: For degrees of freedom
d.f. not in the Student's t table, use
the closest d.f. that is smaller. In
some situations, this choice of d.f. may increase
the P-value by a small amount and therefore produce a
slightly more "conservative" answer.
Do professional golfers play better in their last round? Let row
B represent the score in the fourth (and final) round, and
let row A represent the score in the first round of a
professional golf tournament. A random sample of finalists in the
British Open gave the following data for their first and last
rounds in the tournament.
| B: Last | 74 | 66 | 75 | 71 | 71 | 72 | 68 | 68 | 74 |
| A: First | 69 | 67 | 62 | 71 | 65 | 71 | 71 | 71 | 71 |
Do the data indicate that the population mean score on the last
round is higher than that on the first? Use a 5% level of
significance. (Let d = B − A.)
What is the value of the sample test statistic? (Round your answer
to three decimal places.)
In this problem, assume that the distribution of differences is
approximately normal. Note: For degrees of freedom
d.f. not in the Student's t table, use
the closest d.f. that is smaller. In
some situations, this choice of d.f. may increase
the P-value by a small amount and therefore produce a
slightly more "conservative" answer.
The artifact frequency for an excavation of a kiva in Bandelier
National Monument gave the following information.
| Stratum | Flaked Stone Tools | Nonflaked Stone Tools |
| 1 | 10 | 4 |
| 2 | 9 | 3 |
| 3 | 8 | 3 |
| 4 | 1 | 3 |
| 5 | 4 | 7 |
| 6 | 38 | 32 |
| 7 | 51 | 30 |
| 8 | 25 | 12 |
Does this information indicate that there tend to be more flaked stone tools than nonflaked stone tools at this excavation site? Use a 5% level of significance. (Let d = flaked − nonflaked.)
What is the value of the sample test statistic?
In: Statistics and Probability
Question 2
Part A
Luxury Living Concepts Corp. (LLC) is a publicly accountable
enterprise that builds large complexes, including schools, office
towers, apartment buildings and shopping centres, on a contract
basis. Additional information with respect to the company is as
follows:
- LLC’s year end is December 31.
- The company uses the cost-to-cost approach to determine the stage of completion of its construction projects.
- The enterprise rounds the percentage of completion to two decimal places (for example, 13.54%).
- A discount rate of 4% adequately reflects the underlying
credit risk of LLC’s customer for this transaction.
In 20X1, LLC entered into a $120 million contract to construct a
shopping mall over a three-year period. Construction of the project
was completed in late 20X3. Total costs were originally estimated
to be $98 million. LLC’s progress on the contract and other
pertinent information is detailed below:
| in 000's | 20X1 | 20x2* | 20x3** | Total |
| Costs incurred during year | 23,000 | 55,000 | 43,000 | 121,000 |
| Cumulative costs incurred to date | 23,000 | 78,000 | 121,000 | |
| Estimated costs to complete | 72,000 | 46,000 | 0 | |
| Progress Billings during the year | 29,000 | 51,000 | 40,000 | 120,000 |
| Collections during the year | 22,000 | 50,000 | 48,000 | 120,000 |
* The revised cost data was not known in 20X1.
** The revised cost data was not known in 20X2.
Required:
a) Prepare the required journal entries to record transactions
relating to the contracts for the 20X1, 20X2 and 20X3 fiscal
periods. Show all supporting calculations for each journal entry.
The calculations are to be referenced or included in the
description of the journal entry.
b) Prepare the excerpts of LLC’s statements of financial position
as at December 31, 20X1, and December 31, 20X2 (exclude the impact
on cash and retained earnings).
Part B
Refer to the facts in Part A. Independent of the requirements in
Part A, assume that the additional cost in 20X2 resulted from
changes to the project requested by the customer in 20X2 and that
the customer agreed to increase the contract price to $140 million.
The additional $20 million was added by LLC to its final progress
billing in 20X3 and was paid by the customer during that
year.
Required:
a) Determine the revenue to be recognized by LLC in each of 20X1,
20X2 and 20X3.
b) Determine the expense to be recognized by LLC in each of 20X1,
20X2 and 20X3.
Show all supporting calculations for requirements a) and b) to be
eligible to receive partial marks.
In: Accounting
Question 2
Part A
Luxury Living Concepts Corp. (LLC) is a publicly accountable enterprise that builds large complexes, including schools, office towers, apartment buildings and shopping centres, on a contract basis. Additional information with respect to the company is as follows:
- LLC’s year end is December 31.
- The company uses the cost-to-cost approach to determine the stage of completion of its construction projects.
- The enterprise rounds the percentage of completion to two decimal places (for example, 13.54%).
- A discount rate of 4% adequately reflects the underlying credit risk of LLC’s customer for this transaction.
In 20X1, LLC entered into a $120 million contract to construct a shopping mall over a three-year period. Construction of the project was completed in late 20X3. Total costs were originally estimated to be $98 million. LLC’s progress on the contract and other pertinent information is detailed below:
| (in 000's) | 20x1 | 20x2* | 20x3** | Total |
| Costs Incurred during year | $23,000 | $55,000 | $43,000 | $121,000 |
| Cumulative costs incurred to date | $23,000 | $78,000 | $121,000 | |
| Estimated costs to complete | $22,000 | $46,000 | 0 | |
| Progress Billings during the year | $29,000 | $51,000 | $40,000 | $120,000 |
| Collections during the year | $22,000 | $50,000 | $48,000 | $120,000 |
* The revised cost data was not known in 20X1.
** The revised cost data was not known in 20X2.
Required:
a) Prepare the required journal entries to record transactions relating to the contracts for the 20X1, 20X2 and 20X3 fiscal periods. Show all supporting calculations for each journal entry. The calculations are to be referenced or included in the description of the journal entry.
b) Prepare the excerpts of LLC’s statements of financial position as atDecember 31, 20X1, and December 31, 20X2 (exclude the impact on cash and retained earnings).
Part B
Refer to the facts in Part A. Independent of the requirements in Part A, assume that the additional cost in 20X2 resulted from changes to the project requested by the customer in 20X2 and that the customer agreed to increase the contract price to $140 million. The additional $20 million was added by LLC to its final progress billing in 20X3 and was paid by the customer during that year.
Required:
a) Determine the revenue to be recognized by LLC in each of 20X1, 20X2 and 20X3.
b) Determine the expense to be recognized by LLC in each of 20X1, 20X2and 20X3.
Show all supporting calculations for requirements a) and b) to be eligible to receive partial marks.
In: Accounting
O’Neil Enterprises produces a line of canned soups for sale at supermarkets across the country. Demand has been “soft” recently and the company is operating at 70 percent of capacity. The company is considering dropping one of the soups, beef barley, in hopes of improving profitability. If beef barley is dropped, the revenue associated with it will be lost and the related variable costs saved. The CFO estimates that the fixed costs will also be reduced by 25 percent.
The following product line statements are available.
| Product | Broth | Beef Barley | Minestrone | ||||||||
| Sales | $ | 38,100 | $ | 48,200 | $ | 56,600 | |||||
| Variable costs | 23,800 | 42,200 | 43,700 | ||||||||
| Contribution margin | $ | 14,300 | $ | 6,000 | $ | 12,900 | |||||
| Fixed costs allocated to each product line | 8,300 | 9,600 | 10,700 | ||||||||
| Operating profit (loss) | $ | 6,000 | $ | 3,600 | $ | 2,200 | |||||
Required:
a-1. Complete the following differential cost schedule.
a-2. From an operating profit perspective, should O'Neil drop the beef barley line?
b. When the product manager for the minestrone soup hears that managers are considering dropping the beef barley line, she points out that many O’Neil customers buy more than one soup flavor and if beef barley is not available from O’Neil, some of them might stop buying the other soups as well. She estimates that 5 percent of the current sales of both broth and minestrone will be lost if beef barley is dropped.
b-1. Complete the following differential cost schedule.
b-2. Based on the estimate from the project manager, should O'Neil drop the beef barley line?
In: Accounting
O’Neil Enterprises produces a line of canned soups for sale at supermarkets across the country. Demand has been “soft” recently and the company is operating at 70 percent of capacity. The company is considering dropping one of the soups, beef barley, in hopes of improving profitability. If beef barley is dropped, the revenue associated with it will be lost and the related variable costs saved. The CFO estimates that the fixed costs will also be reduced by 25 percent.
The following product line statements are available.
| Product | Broth | Beef Barley | Minestrone | ||||||||
| Sales | $ | 38,100 | $ | 48,200 | $ | 56,600 | |||||
| Variable costs | 23,800 | 42,200 | 43,700 | ||||||||
| Contribution margin | $ | 14,300 | $ | 6,000 | $ | 12,900 | |||||
| Fixed costs allocated to each product line | 8,300 | 9,600 | 10,700 | ||||||||
| Operating profit (loss) | $ | 6,000 | $ | 3,600 | $ | 2,200 | |||||
Required:
a-1. Complete the following differential cost schedule.
a-2. From an operating profit perspective, should O'Neil drop the beef barley line?
b. When the product manager for the minestrone soup hears that managers are considering dropping the beef barley line, she points out that many O’Neil customers buy more than one soup flavor and if beef barley is not available from O’Neil, some of them might stop buying the other soups as well. She estimates that 5 percent of the current sales of both broth and minestrone will be lost if beef barley is dropped.
b-1. Complete the following differential cost schedule.
b-2. Based on the estimate from the project manager, should O'Neil drop the beef barley line?
In: Accounting
the retailer JC Penney, and how they are trying to implement a strategy to reduce their inventory at their stores. Inventory last quarter rose 2.6%, and sales numbers were reported low. JC Penney has attempted to combat this problem by hiring a Senior Vice President of Planning and Allocation and Pricing. At the end of the previous quarter, inventory levels were reported at 2.9 billion dollars. Some of the causes of this large inventory was an addition of floor samples for appliance and mattress departments, and additional sizes in clothing assortments. Store sales for the quarter only increased by 0.2%, when they were projected to have increased by 2.1%. Industry specialists say that retail stores face the difficulty of inventory management because the stores need to carry a wide variety of products and sizes to draw in all sorts of customers, and the online competition from companies like Amazon are threats. Especially with fashion trends moving fast, the inventory management in retail stores has proved challenging. Total revenue for JC Penney has decreased 4.1% for the quarter, and a loss of 78 million dollars was reported.
I need help with the following Questions:
1) What are the financial consequences of having too much inventory on hand? What conclusions can be drawn from a company with too much excess inventory?
2) What are some inventory strategies that a company can use to keep their inventory levels at a desirable level?
Link to article: https://blogs.wsj.com/cfo/2018/05/18/j-c-penney-aims-to-trim-growing-inventory-at-comparable-stores/
In: Finance
Please answer any or all, thank you!!
______ 30. Most industrialized nations in the world now use a _____________________________, where
exchange rates fluctuate due to changes in demand.
A. floating exchange rate system
B. fixed exchange rate system
C. purchasing power parity exchange rate system
D. central bank regulatory system
______ 31. Firms hold cash balances
A. to complete transactions that are necessary in business operations.
B. as compensation to banks for providing loans and services.
C. to earn “Interest Revenue.”
D. A and B.
E. A and B and C.
______ 32. To reduce the length of its “Cash Conversion Cycle” (CCC), a company could
A. adopt a new inventory system that reduces the inventory conversion period.
B. reduce the average “Days Sales Outstanding” (DSO) on its “Accounts Receivable.”
C. reduce the amount of time the company takes to pay its suppliers.
D. A and B.
E. A and B and C.
______ 33. A lock box system for cash collections from customers is most beneficial to firms which
A. make collections over a wide geographic area.
B. have widely dispersed manufacturing facilities.
C. have a large marketable securities account to protect.
D. hold inventories at many different sites.
______ 34. A(n) ____________________ opportunity exists if a currency trader has the opportunity to earn a
positive cash flow with no risk involved in the transaction.
A. gold standard
B. arbitrage
C. interest rate parity
D. market equilibrium
In: Finance