QUESTION 1

QUESTION 1

Investment of RM800,0000 in new machine to expand production capacityis being

consideration by a company.Following are the budgeted cash flows given for next 6 years:

Years	RM000
1	(80)
2	310
3	260
4	310
5	220
6	180

Required:

1. Calculate payback period.
2. Calculate Net Present Value using 10% discount rate for the company.

QUESTION 2

ABC SDN BHD information as at 31 December 2020

	RM
Building	1,000
Furniture	500
Account Payable	500
Land	1,000
Account Receivable	200
Vehicle	1000
Inventory	100
Bank	300
Short term loan	100
Long term loan	1,000
Share Capital	2,000
Retained Earnings	500

Prepare a balance sheet as at 31December 2020 for ABC SDN BHD.

QUESTION 3

Discuss the functions of budgets in achieving the goal of an organization