Question
MAJU Sdn. Bhd. is a company producing garments products. Below are the companys financial statements: MAJU Sdn. Bhd Statement of Comprehensive Income for the year
MAJU Sdn. Bhd. is a company producing garments products. Below are the companys financial statements:
MAJU Sdn. Bhd | ||||||||
Statement of Comprehensive Income for the year ended 31 August 2021 | ||||||||
|
|
| RM |
| ||||
| Sales revenue |
| 1,000,000 |
| ||||
| Cost of goods sold |
| (500,000) |
| ||||
| Gross profit |
| 500,000 |
| ||||
| Operating Expenses Administration expenses |
|
(50,000) |
| ||||
| Distribution expenses |
| (150,000) |
| ||||
| Depreciation expense |
| (20,000) |
| ||||
| Other operating expense |
| (30,000) |
| ||||
| Profit before interest & tax |
| 250,000 |
| ||||
| Interest expense |
| (20,000) |
| ||||
| Net profit before tax |
| 230,000 |
| ||||
| Income tax expense |
| (60,000) |
| ||||
| Net income |
| 170,000 |
| ||||
|
|
|
|
| ||||
MAJU Sdn Bhd | ||||||||
Statement of Financial Position as at 31 August 2021 | ||||||||
2020 | 2021 | |||||||
| RM | RM | ||||||
Non-current Assets | ||||||||
Net Book Value of Machinery |
|
160,000 |
|
140,000 | ||||
Current Assets |
|
| ||||||
Bank |
| 40,000 |
| |||||
Account Receivable |
| 100,000 |
| 150,000 | ||||
Inventory |
| 200,000 |
| 350,000 | ||||
Total Assets | 500,000 | 640,000 | ||||||
Non-current Liabilities |
|
|
| |||||
Loan |
| 250,000 |
| 330,000 | ||||
Current Liabilities | ||||||||
Bank Overdraft |
|
|
| 20,000 | ||||
Accounts Payable |
| 20,000 |
| 50,000 | ||||
Operating expenses payable |
| 10,000 |
| 20,000 | ||||
|
|
|
|
| ||||
Shareholders Equity | ||||||||
Ordinary share capital | 100,000 | 100,000 | ||||||
Retained earnings |
| 120,000 |
| 120,000 | ||||
Total Liabilities & Equities | 500,000 | 640,000 | ||||||
Required:
(a)
1 Compute the collections from customers. (2 marks)
2 Compute payments for merchandise inventory. (3 marks)
3 Compute payments of operating expenses. (2 marks)
4 Compute the acquisitions of Machinery. (3 marks)
5 Compute the amount of borrowing, with MAJU paying no long-term liabilities. (2 marks)
6 Compute the cash payment for interest expense. (2 marks)
7 Compute the payment of cash dividends. (2 marks)
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