Master of Business Administration

Cover Sheet

Student Information

Full Name Ma Wai Zin Kyaw Grade / Marks

Email address waizinkyaw411@gmail.com

Module Information

Module Name

Intake ODL Intake 6

Lecturer Name

Mark

Submission Date 21.1.2024

Word Count

Instructions to Students

 Submit your assignment on time.

 Use Times New Roman font, size 12, and double line spacing.
 Word Count must be between 1,400-1,500 Words, excluding cover page, references
section and appendixes.
 This case study answer must be your own work. You are required to acknowledge
any use of the published and unpublished works of others. Use proper referencing
system by providing in-text citations and reference list.
 Do take note that plagiarism is a serious academic offence.
 Your assignment should be checked with plagiarism-checking application,
available at the school. Submit the results along with your assignment.

1
 MBA (Mid-term Question)
Business Accounting& Finance

Answer all questions.

1. The Jarmon Company manufactures and sells a line of exclusive sportswear. Prepare a
financial position as at 31st December 2022 from the following information.

Account Receivable $ 75,000

Long term loan 10,000
Mortgage 20,000
Gross Fixed Assets 85,000
Bank 25,000
Other Assets 30,000
Common stock 130,000
Inventories 80,000
Short term loan 30,000
Retained earnings 30,000
Accumulated depreciation 25,000
Account Payables 50,000

2
Based on the given information, the financial position of the Jarmon Company as at 31st
December 2022 can be prepared as follows:

Assets = Liabilities + Shareholders' Equity

Assets

Current assets Amount

Account Receivable $ 75,000
Bank $ 25,000
Inventories $ 80,000
Other Assets $ 30,000
Total current assets $ 210,000
Fixed assets Amount
Gross Fixed Assets $ 85,000
Accumulated depreciation $ 25,000
Net fixed assets ( 85,000- 25,000) $ 60,000

Therefore, Total Assets = Current Assets + Fixed Assets

= $210,000 + $60,000 = $270,000

Liabilities

Current liabilities Amount

Short term loan $ 30,000
Account Payables $ 50,000
Total current liabilities $ 80,000
Long term liabilities Amount
Long term loan $ 10,000
Mortgage $ 20,000
Total long term liabilities $ 30,000

Therefore, Total Liabilities = Current Liabilities + Long-term Liabilities

= $80,000 + $30,000 = $110,000

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Shareholders' Equity

Shareholders' Equity Amount

Common stock $ 130,000
Retained earnings $ 30,000

Total Shareholders' Equity = $160,000

Assets = Liabilities + Shareholders' Equity

$270,000 = $110,000 + $160,000

The total assets and total liabilities and equity are equal, which indicates that the accounting
equation is balanced.

4
2. The income statement for the year ended December 31, 2021, for Kosinski Company
contains the following condensed information. Kosinski Company Income Statement for the
Year Ended December 31, 2021.
Kosinski Company Income Statement for the Year Ended December 31, 2021.
Sales revenue $6,583,000
Operating expenses (excluding depreciation) $4,920,000
Depreciation expense 880,000 5,800,000
Income before income taxes 783,000
Income tax expense 353, 000
Net income 430,000

Included in operating expenses is a $24,000 loss resulting from the sale of machinery for
$270,000 cash. Machinery was purchased at a cost of $750,000. The following balances are
reported on Kosinski’s comparative balance sheets at December 31.
Kosinski Company Comparative Balance Sheets (partial)
2021 2020
Cash $672,000 $130,000
Accounts receivable 775,000 610,000
Inventory 834,000 867,000
Accounts payable 521,000 501,000

Income tax expense of $353,000 represents the amount paid in 2021. Dividends declared and
paid in 2021 totaled $200,000.
Required: Prepare the statement of cash flows using the indirect method.

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Statement of cash flows using the indirect method for Kosinski Company

Cash flows from operating activities:

Net income 430,000

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation expense 880,000

Loss on disposal of equipment 24,000

Increase in accounts receivable (165,000)

Decrease in inventory 33,000

Increase in accounts payable 20,000

Net cash provided by operating activities 1,222,000

Cash flows from investing activities:

Sale of machinery 270,000

Purchase of machinery (750,000)

Net cash used by investing activities (480,000)

Cash flows from financing activities:

Payment of cash dividends (200,000)

Net cash used by financing activities (200,000)

Net increase in cash 542,000

Cash at beginning of period (2020) 130,000

Cash at end of period (2021) 672,000