BUL£ l-IOflA UNIVF.Rsrrv URAGA CAMPUS COLLE<.

F, OF lllJSINESS A'"
£CONOM1cs DEPARTMENT OF ACCOUNTING ANO FINANn; , MATIW \tA 1 1(,
FOR F NANCE ASSIGNMENT FOR FIRST VEAR STUDENTS. MAXl'l.IUM WEJ<a n
20% (TERM PA PER 15%, PRESENTATION 5%).
I . XYZ company's cost function for the next four months is
C = 500,000 + SQ

a) Find the BE dollar vol ume of sales if the selling price is br. 6 / unit
b) What would be the company's cost if it deoides to shutdown opera1;ons fot the
next four months

c) If, because of strike, the most the company can produce is br. 100,000 units.
should it shutdown? Why or why not?

2. In its first year, "Abol Buna Co" had the following experience
Sales = 25,000 units Selling price = br. I
00 TVC = br. 1,500,000
TFC = br. 350,000
Req
uired:

1 . Develop Revenue, cost & profit functions for the co. in terms of quantity.
2. Find the Breakeven point in tenns of quantity
3. Convert the cost equation in tenns of quantity in to a cost equation in terms of revenue
4. Find the Breakeven revenue

5. If profit had been br. 500,000 what would have been the sales volume (revenue) & the
quantity of sales
6. What would have been the profit if sales are br. 2,000,000.

3. A smal l home business set up with an investment of $ 10,000 for equipment. The
business manufactures a product at a cost of br. 0.64 per unit. Ifthe product sales for Br.
1.20 per unit how many units must be sold before the business breaks even?
4. A retail co. plans to work on a margin of 44% of retail price & to incur other Variable
Cost of 4%. If is expected Fixed cost of Br. 20,000.
Find the equation relating Total Cost to sales
JI Find the profit if sales are Br. 60,000
 FA I indi\'id ual ASSJGN\ IENT IFOR FIRST VICA R 4.CC0\ "'11\(, \'\ ll Fl 'i \'-C E
Ham/e 1. A/em Taye oper(l( ed a D1:1 ·c/eanin h111i11e .u "' hume and 111111· ,he decided IO go Tm
rented quarters as of Tir I und to work ji1/I II 111<• to her """' ·hich
hu1111e1.1 11 ;_, k1101111 a.1 " A /em
Dry Cleuner. " the fol I owing assets 11·ere 1111•e 11ed 111 the e111e17,,'i.1<· ( ash llin· II, IJUU
acco1111t.> recefrab/ e, bin· r.
I 00. supp / ies Birr -UOO and D1y Cf eoning 111 Hqmpmrnt hi1·r 4
.IJUO Then• were no liabilities transferred in the business

I. Paid Birr 5,400 on a rent contract represent three months rent of the q1111n er.1/or 1he husiness
3. Purchased additional Dry cleaning Equipm ent on account fro m ;Vational Equipment
Birr 9,000 ,.
./. Received Birr 7 I OOfr
, om customers inpa ,r .
.)- Pa ·d B · yment 01 their accounts
· z zrr I 500fio
. , r a television advertisement
9. Pazd birr 4, 000 to 1.,..v,atz.onal Dr Cl .
them y eanzng company to apply on the Birr 9000 debt owed to

16. Received Birr 5 845fr

, om salesf or thefi rst half of Hamf e.
19. paid Birr 2,900for suppli es
26. Paid Birr 470 a tw0 weeks salaryf or the reception ist.

30. Paid Birr 367for electric, teleph one, and water billsfor a month.
30. Received Birr 5, 735from sales f or the second half of Hamle
30. Sales on account totaled Birr 3925.
30. A/em withdrew Birr 2,500for her p ersonal use.
Required:
(a) Record the above transactions on a two-column general journal
(b) Post the entries to the accounts in the ledger
(c) Prepare trial balance as of hamle 30, 2008
(d) Prepare adjusting entries if
1) the inventory of supplies on Hamle 30 is determined to be Birr 5000 the amount of
supplies used
2) Alem 's prepayments for rent covering for three months have a debit balance of Birr
5,400 on Hamle 1. At the end of Hamle, the potion belongs to Hamle is one-third
( 113) of the total balance of prepaid Rent.
3) the dry Cleaning Equipment depreciation of Birr 4,500 is not record ed,
4) the salaries of birr 94 is not recorded
( ) repare worksheet (g) prepare closing entries
( repare financial statement (h) prepare post-closing trial-balance
 ui. Find the breakeven revenue
iv. If profit is Br. l 5,000 what should be the revenue \eve\?
v. If you have any one item at a price of Br. l 5/unit how do you con\·ert the
cost equation in terms of revenue into a cost equation in terms of quantity'?

Find the inverse for the following matrices (if exist)

A-1 = l/3 -4 -5 3
-2 2 3
1. A === -4 -8 3
1 -1 0 2 0
1
0 1 4

1 2
11 ffl = l
2 -17 -3
B === 2 4
2.
11 -7 6 -5
-1 3
0 -2
3

l l
3. 2
4 -3
c -:-: 2

6 -5
3

2 7 l
s. D '""
-9 2
-3
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/ / lt' /' .Wlll<lf llS<'
/t11

l{cct nintl:
(11) H1.'l'Pl'd ll w ;1hPn' t1·11nst1l'lto11s on u t wn ·<:olumn gcm.:ruljmtmul
( h) P1JSt t li1.• l'llf ril'S lo t h1.·ul·1·. oun ts in t h1.· kd u.cr
1
(1.:) P n.:p111· t l'i:il h11 l:111l'l' 11s o l hu m k 008
30,

(d) 1I ')1t•pt mh«1.·i1m1lwj 1u1stt1i1n1'g) 111.•I11 t iui1p.:spliiie' s nn I l:tmlc 10 is dotermi11ctl to be llirr 5000
the amo1111t of

') :1-\;1k1ptptlt i·l"Spltl'Sl'tl1'dt1V1lll'ttts 1<11· rctt l ett veri n li>r three mnnt hs ha' e ,, debit balance
ofBirr
• Itill tt n 1 111111k I. /\ I titt• c1ttl n I'1 111mle. Ihe pnt ioo hdo11gs to llmnk is 011c-third
( I 13 ) 111' t hl.' lot n l lm l1111n' ol prl'pu id R1.•nl.
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1) t ltc ti t ')' ('I'''"tt n I·'· 1 'q I ) the snlurk · 11f bin' 911 is nnl rnmkd
tt i pmenI depreci at ittn n I pre pure 11·u rh ,l tccl Jr l 1''"11"'''' ,·\11stn ent nes . .
IIi rr 4.'llil ts nnt recorded, pt'C\l"' '" 11 llll t''nt I st:1Ien11•nl (It) prcpm·1·pnst dos111c tn al-Im lance
1