MALAYSIAN INSTITUTE OF INFORMATION TECHNOLOGY

JANUARY 2020 SEMESTER

IEB20503 INTRODUCTION TO FINANCE

MID TERM TEST

PREPARED BY:

NO. NAME STUDENT ID NO.

1. NUR AFIQAH BINTI ALIAS 52218219117

PREPARED FOR:
MADAM NURHAZWANI

Answer ALL questions

Question 1

In the year ended 31 December 2019, Sulaman Sutera Sdn Bhd had RM 1 000 000.00
earned from the business sales. The cost involved on the product sold is RM 600
000.00 with operating expenses such as Marketing expenses of RM 100 000.00,
General expenses RM 60 000.00 and Administrative expenses 12.5% of the gross
profit. Sulaman Sutera received other income from dividend amounting RM 10 000.00.
The company is expected to pay its interest expense of RM 20 000.00. The company
tax rate is 27% from the total earnings before interest and tax (EBIT). State what is the
net profit and prepare the Income Statement for Sulaman Sutera Sdn Bhd for the year
ended 31 December 2019.

Sales RM1,000,000
Operating Expenses - RM 600,000
Gross Profit RM 400,000
Marketing Expense RM 100,000
General Expense RM 60,000
Admin Expense - RM 50,000
RM 190,000
Income Dividend + RM 10,000
RM 200,000
Interest Expense - RM 20,000
RM 180,000
Tax Rate (27%) - RM 54,000
Net Profit RM 126,000

Question 2

Sulaman Sutera Sdn Bhd also need to prepare a Balance Sheet as at 31 December
2019 with the following details;
The company had cash at bank of RM 8 500.00. Then, an account receivable of RM
19 000.00 and payable of RM 34 000.00. There is property, plant and equipment
worth RM 145 000.00. They also had RM 46 500.00 of inventory value and RM 4
150.00 of prepaid expenses. Sulaman Sutera had a several old debts that needed to
be paid amounting RM 2 500.00. The company currently engaged with a 10 years of
bank loan that requires RM 75 000.00 to be paid for the year 2019. Besides, there is
also common stockholders’ equity worth RM 111 650.00.

SULAMAN SUTERA SDN BHD

Balance Sheet as a 31 December 2019 Year 2019 (RM)
Current Asset
Cash at Bank 8,500
Inventory 46,500
Prepaid Expenses 4,150
Account Receivable:
Cash Sales 19,000
Fixed Asset
Equipment 145,000
Total Asset RM223,150
Liabilities & Equity
Short Term Liabilities
Bank Loan 34,000
Debt 2,500
Long Term Liabilities
Bank Loan 75,000
Owner’s Equity
Stockholders’ Equity 111,650
Total Liabilities & Equity RM223,150