Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Noble Manufacturers Ltd., a large-scale manufacturing company has provided you with the following information for the year ended 31 December 2021. Kshs 000 Kshs 000

Noble Manufacturers Ltd., a large-scale manufacturing company has provided you with the following information for the year ended 31 December 2021.

Kshs "000" Kshs "000"

Gross Profit 48,000

Less:

General expenses 3,900

Directors fees 7,200

Depreciation 10,400

Salaries and wages 4,600

Donation to Mayors campaign kitty 820

Interest expense 6,200

Dividends paid 4,605

Repairs and maintenance 6,250

43,975

Net Profit 4,025

Additional Information

1. On I January 2021, Noble Manufacturers Ltd. Purchased his factory from Kikope Ltd., a registered contractor for Kshs 500 Million. Kikope Ltd., availed the following information details concerning the cost of construction of the factory:

Kshs "000"

Acquisition of land 25,000

Demolition of old building on site 19,000

Labour quarters built on site 60,000

Factory building 190,000

Stone perimeter wall around the factory 30,000

Bank interest paid during the period of construction 56,000

380,000

2. The factory housed a warehouse costing Kshs 17,000,000,

administration block costing Kshs 50,000,000

and showroom costing Kshs 25,000,000.

Noble Manufacturers Ltd., installed machinery costing Kshs 200,000,000 on 2 January 2021 and started manufacturing animal feed.

3. The following additional assets were acquired during the year ended 31 December 2021: Date Asset Cost Kshs. "000"

5 January Scanners 620

12 February Furniture and fixtures 820

15 March Computers 2,250

14 April Motorcycle 190

14 June Special maintenance tools 36

18 July Led screen 48

21 July 3 Salon cars (Kshs 1,600,000 each) 4,800

26 October 2 Lorries (4 tones Kshs 4m each) 8,000

4. The following assets were disposed of during the year:

Date Asset Cash Proceeds (Kshs "000")

1 October 2021 Salon car purchased by Kikope at Kshs 1,600,000) 900

6 November 2021 Furniture 295 T

he written down values brought forward for capital allowance purposes as at 1 January 2021 were as follows:

Machinery Kshs '000" 8,310

ComputersKshs '000" 6,415

Motor Vehicles Kshs '000" 6,680

Fixtures and FittingsKshs '000" 4,990

Required:

Compute for Noble Manufacturers Ltd. For the year ended 31 December 2021

: 1. The capital allowances

2. Taxable profit

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
3. Draw an Edgeworth Box diagram with an initial endowment. Show the gains from trade relative to this endowment point assuming that each person has normal shaped indifference curves. Show the Pareto Efficient points that are within the region of gains from trade relative to the initial endowment. Make sure that your initial endowment point is not Pareto Efficient The endowment net assets composition by type of fund at April 30, 2018, is as follows (in thousands); TEMPORARILY PERMANENTLY UNRESTRICTED RESTRICTED RESTRICTED TOTAL 1 Donor-restricted endowment funds $ $96,198 $109,205 $205,403 2 Board-designated endowment funds 471,027 471,027 3 Total endowment funds $471,027 $96,198 $109,205 $676,430 TEMPORARILY PERMANENTLY UNRESTRICTED RESTRICTED RESTRICTED TOTAL 4 Endowment net assets, May 1, 2017 $429,625 $87,866 $104,509 $622,000 Investment return 5 Net appreciation on investments 39,802 14.394 1,337 55.533 6 Interest, dividends, and capital distributions 2,248 1,370 3.618 7 Total investment return 42,050 15.764 1,337 59,151 8 Contributions to endowment 111 3,359 3,470 9 Appropriation of endowment assets for expenditure (11,742) (7,432) (19,174) Other changes 10 Transfers to create board-designated endowment funds 10,983 10.983 11 Endowment net assets, April 30, 2018 $471,027 $96,198 $109,205 $676,430Question 2: Consider a country producing milk and cookies using labor and capital as inputs described by a Heckscher-Ohlin model. The following table provides outputs for goods and factor endowments before and after a change in the endowments. Output and Endowments Initial After Endowment Change Milk Output, QM 100 gallons 1 10 gallons Cookie Output, Qc 100 pounds 80 pounds Labor Endowment, L 4000 hours 4200 hours Capital Endowment, K 1000 hours 1000 hours a) Calculate and rank the magnification effect for quantities in response to the endowment change. b) Which product is capital intensive? Show why. c) Which product is labor intensive? Show why.Gross profit is equal to sales plus cost of merchandise sold O sales plus selling expenses sales less selling expenses O sales less cost of merchandise soldWhich of the following accounts has a normal credit balance? Accounts Receivable O Sales O Merchandise Inventory Delivery Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting, Chapters 1- 15

Authors: James A. Heintz, Robert W. Parry

23rd Edition

0357391942, 9780357391945

More Books

Students also viewed these Accounting questions

Question

TCP UDP QuickSort HTTP HTTPS SQL RESTful API

Answered: 1 week ago