Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me i will give good rating (a) You have collected the following information for Fishy Berhad. Other information provided are credit sales RM210,000

Please help me i will give good rating

image text in transcribed

(a) You have collected the following information for Fishy Berhad. Other information provided are credit sales RM210,000 and cost of goods sold RM198,000. Calculate; (i) Operating cycle (ii) Cash cycle (b) Your company wants to purchase a photostat machine which costs RM15,000. It will be obsolete in 5 years. Your options are to borrow the money at 10 percent or to lease the machine. If you lease the payment will be RM2,500 per year, payable at the end of each of the next five years. If you purchase the machine it will depreciate at a straight-line basis. The tax rate is 34 percent. Prepare a table and calculate to justify whether you should lease or buy. (a) You have collected the following information for Fishy Berhad. Other information provided are credit sales RM210,000 and cost of goods sold RM198,000. Calculate; (i) Operating cycle (ii) Cash cycle (b) Your company wants to purchase a photostat machine which costs RM15,000. It will be obsolete in 5 years. Your options are to borrow the money at 10 percent or to lease the machine. If you lease the payment will be RM2,500 per year, payable at the end of each of the next five years. If you purchase the machine it will depreciate at a straight-line basis. The tax rate is 34 percent. Prepare a table and calculate to justify whether you should lease or buy

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Finance questions