COEB442_Sem_1_2016-2017 revision - COEB442 Engineering Economics Revision Sem 1 2016\/2017 Dear students Majority of the questions here are taken from

COEB442_Sem_1_2016-2017 revision - COEB442 Engineering...

This preview shows page 1 - 3 out of 41 pages.

Page | 1 COEB442 Engineering Economics Revision Sem 1, 2016/2017 Dear 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 Examination Semester 1, 2015/2016 (a) Below is information gathered from the Financial Statements of Akookeye Sdn Bhd for financial year end July 2015. ITEM RM Building 1,200,000 Cash 86,000 Inventories 34,000 Revenues from sales 2,435,000 Computer equipment 34,000 Salary expenses 795,500 Vehicles 250,000 Prepaid rental expenses 12,000 Account receivables/ Debtors 52,000 Revenues from investments (other than sales) 350,000 Account payables/ Creditors 78,500 Administration expenses 187,600 Marketing and selling expenses 235,000 Long-term Payables 580,000 Cost of goods sold 1,080,000 Accrued insurance expense 21,000 To assess Akookeye’s financial performance, the accountant wants few analysis using the data provided. Required : i. Is the company utilizing its assets efficiently in generating its sales, given that the industry’s average is 3 ? Support your answer with calculation. [6 marks] A: assets turnover= RM1.46 sales per RM1 asset. Not efficient compared to industry which is 3. ii. Prepare the Profit or Loss/Income Statement for Akookeye Sdn Bhd. with company tax rate at 25%. [8 marks] A: Income Statement with Gross profit=RM1,355,000, operating profit =RM486,900, profit after tax of RM365,175 1
Image of page 1
Page | 2 COEB442 Engineering Economics Revision Sem 1, 2016/2017 Final Examination Semester 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. [1 mark] (b) The data below were based on the financial statements of Top Manufacturing Corporation for year 2013 (in RM thousands). Items RM Inventories 25,500 Land, Buildings, Plant and Machinery 57,000 Cost of sales 85,000 Long term liabilities 33,000 Accounts payable and Short Term Borrowings 45,000 Distribution, selling and marketing expenses 20,000 Interest Expenses 1,000 Taxation 1,000 Dividends 2,000 The acid test ratio and the asset turnover ratio is 0.5 and 1.1 respectively. Calculate the following: i. the total assets = RM105,000 [5 marks] ii. the sales = RM115,500 [2 marks] iii. the operating profits = RM 10,500 [3 marks] iv. the retained earnings = RM6,500 [2 marks] Final Examination Semester 2, 2013/2014 (a) i. A corporation net income is derived by subtracting income taxes from the taxable income during the accounting period. Briefly explain what the corporation will decide to do with this net income. [2 marks]
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 41 pages?

  • Spring '19
  • COEB442 Engineering Economics

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture