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Page | 1COEB442 Engineering EconomicsRevisionSem 1, 2016/2017Dear students,Majority of the questions here are taken from previous examinations. Plus few from textbook and past tests.All the best ya.Chapter 2(Q3.a) Final ExaminationSemester 1, 2015/2016(a)Below is information gathered from the Financial Statements of Akookeye Sdn Bhd for financial year end July 2015.ITEMRMBuilding1,200,000 Cash86,000Inventories34,000Revenues from sales2,435,000 Computer equipment34,000Salary expenses795,500Vehicles250,000Prepaid rental expenses12,000Account receivables/ Debtors52,000Revenues from investments (other than sales)350,000Account payables/ Creditors78,500Administration expenses187,600Marketing and selling expenses235,000Long-term Payables580,000Cost of goods sold1,080,000 Accrued insurance expense21,000To assess Akookeye’s financial performance, the accountant wants few analysis using thedata provided. Required:i.Is the company utilizing its assets efficiently in generating its sales, given that theindustry’s average is 3? Support your answer with calculation. [6 marks]A: assets turnover= RM1.46 sales per RM1 asset. Not efficient compared toindustry which is 3.ii.Prepare the Profit or Loss/Income Statement for Akookeye Sdn Bhd. with company taxrate at 25%.[8 marks]A: Income Statement with Gross profit=RM1,355,000, operating profit =RM486,900,profit after tax of RM365,1751
Page | 2COEB442 Engineering EconomicsRevisionSem 1, 2016/2017Final ExaminationSemester 1, 2014/2015(a) Give a short definition for the following terms:i.Income Statement[1 mark]ii.Net Cash Flow[1 mark]iii. Give ONE example of financing activities in a company.[1mark](b) The data below were based on the financial statements of TopManufacturing Corporation for year 2013 (in RM thousands). ItemsRMInventories25,500Land, Buildings, Plant and Machinery57,000Cost of sales 85,000Long term liabilities 33,000AccountspayableandShortTermBorrowings45,000Distribution,sellingandmarketingexpenses20,000Interest Expenses1,000Taxation1,000Dividends2,000The acid test ratio and the asset turnover ratio is 0.5 and 1.1 respectively.Calculate the following:i.the total assets = RM105,000 [5marks] ii.the sales= RM115,500[2 marks]iii. the operating profits = RM 10,500[3 marks]iv. theretainedearnings=RM6,500[2 marks] Final ExaminationSemester 2, 2013/2014(a) i. A corporation net income is derived by subtracting income taxes fromthe taxable income during the accounting period. Briefly explain what the corporation will decide to do with this net income. [2 marks]