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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
(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 buyStep by Step Solution
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