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QUESTION 1

The balance sheet for Sapura Synergy Sdn. Bhd for the year ending December 31, 2015 are given as
below.

Sapura Synergy Sdn Bhd


Balance Sheet
December 31, 2015

Assets RM
Cash 25,000
Cash Equivalent 10,000
Accounts receivable (net) 230,000
Inventory 150,000
Prepaid expenses (cash advance) 5,000
Total Current Assets
Plant and Machinery 350,000
Long Term Assets Investments 184,000
Other non - current assets 30,000
Total Fixed Assets
Total Assets

Liabilities: RM
Current liabilities:
Accounts payable 170,000
Notes payable 30,000
Dividends payable 50,000
Income taxes payable 20,000
Total Current Liabilities
Long Term Liabilities:
Long term debt
Total Liabilities
Equity:
Stockholders’ equity: 514,000

Note :

Prepaid expenses are future expenses that have been paid in advance. You can think of prepaid expenses
as costs that have been paid but have not yet been used up or have not yet expired. The amount of prepaid
expenses that have not yet expired are reported on a company's balance sheet as an asset.
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Please Answer All Questions.

(a) Calculate the total current assets

(b) Calculate the total fixed assets.

(c) Calculate the total assets

(d) Calculate the total current liabilities

(e) If the debt ratio of Sapura Synergy is 35%, calculate the long term debt of the Corporation.
Debt ratio = Total Debt/ Total Assets = 35%

Debt Ratio = (Current Liabilities + Long Term Liabilities) / Total Assets

35% = (CL + LTL) / Total Assets

Thus,

CL + LTL = 35% x Total Assets

LTL = (35% x Total Assets) – CL

(f) Calculate the total liabilities.

(d) What is the working capital of the Corporation?


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QUESTION 2

The Income Statement for Super Corporation for the year ending December 31, 2016 are given as
below.

Super Corporation
Income Statement
For the Year Ended December 31, 2016

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . RM 1,820,000
Sales Allowances…………………... RM 220,000

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000

Expenses:
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . 32,000
Research and Development expenses……………………………… 60,000
Interest and other expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000

(a) Calculate the net sales.

(b) Calculate the income before taxes.

(c) If the net income is RM253, 000, what is the percentage of tax paid to the government?
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QUESTION 3

Aztech Company is producing a microchip components. On 1st January 2015 it bought a machine for
RM400, 000. The cost of installation is RM20, 000. The transportation cost is RM10, 000. The useful life
of the machine is 3 years and the salvage value is RM100, 000. Use the straight line method to find the
annual depreciation and book value for each years.