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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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