Short Analysis and Case-Based Problems
Added on 2022-12-05
10 Pages2105 Words421 Views
Question 1.........................................................................................................................................2
Question 2.........................................................................................................................................3
Question 3.........................................................................................................................................3
Question 4.........................................................................................................................................3
Question 5.........................................................................................................................................3
Part B.....................................................................................................................................................3
Question 6.........................................................................................................................................3
Question 7.........................................................................................................................................4
Question 8.........................................................................................................................................4
Part 3.....................................................................................................................................................4
Question 9.........................................................................................................................................4
Question 10.......................................................................................................................................5
Question 11...........................................................................................................................................8
REFERENCES..........................................................................................................................................9
Part A
Question 1
Carrying value: Book value – depreciation
Question 2.........................................................................................................................................3
Question 3.........................................................................................................................................3
Question 4.........................................................................................................................................3
Question 5.........................................................................................................................................3
Part B.....................................................................................................................................................3
Question 6.........................................................................................................................................3
Question 7.........................................................................................................................................4
Question 8.........................................................................................................................................4
Part 3.....................................................................................................................................................4
Question 9.........................................................................................................................................4
Question 10.......................................................................................................................................5
Question 11...........................................................................................................................................8
REFERENCES..........................................................................................................................................9
Part A
Question 1
Carrying value: Book value – depreciation
= 10000 – 9%
= 9100
Question 2
B option is the answer.
In case of prices are falling this indicate that previous bought slot mush have more
prices and in case of using the FIFO method this will increase the cost of goods sold that will
further reduce the profit margin.
Question 3
Book value after two years = 24500
Cost of machine = 24500 + 5000 (2500 * 2)
= 29500
Question 4
Book value = 29500
Total depreciation = 25000 (2500 * 10)
Salvage value = 4500 (29500 - 25000)
Question 5
Current liability
Part B
Question 6
Dividend received 221
Share purchase (112)
Increase in investment balance (86)
Increased PPE balance (416)
Cash flow from investing activity (393)
Question 7
Decrease commercial paper (76)
= 9100
Question 2
B option is the answer.
In case of prices are falling this indicate that previous bought slot mush have more
prices and in case of using the FIFO method this will increase the cost of goods sold that will
further reduce the profit margin.
Question 3
Book value after two years = 24500
Cost of machine = 24500 + 5000 (2500 * 2)
= 29500
Question 4
Book value = 29500
Total depreciation = 25000 (2500 * 10)
Salvage value = 4500 (29500 - 25000)
Question 5
Current liability
Part B
Question 6
Dividend received 221
Share purchase (112)
Increase in investment balance (86)
Increased PPE balance (416)
Cash flow from investing activity (393)
Question 7
Decrease commercial paper (76)
End of preview
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