Question 7
After the first year of trading, Mr. Wong provided you the following list of ledger balances as at 31 December 2003:
$
Stock, 1 January 2003 3,300
Stock, 31 December 2003 25,200
Sales 160,000
Purchases 100,000
Premises 142,600
Fixtures & Fittings 45,200
Motor Vehicles 42,500
Returns Inwards 1,500
Returns Outwards 2,600
Carriage Inwards 1,000
Carriage Outwards 250
Debtors 30,500
Creditors 41,500
Wages 17,495
Rent and Rates 3,900
Lighting & Heating 18,455
Insurance 10,600
Motor Vehicle Expenses 2,400
Cash at Bank 4,700
Bank Loan 29,000
Loan Interest 2,300
Drawing 6,400
You are further given the following information:
1.Wages owing are $550.
2.Prepaid rent is $600.
3.Depreciation of Fixtures & Fittings is 10% per annum on cost.
4.Depreciation of Premises is based on a 10-year lease.
5.Depreciation of Motor Vehicles is 50% life using the reducing balance method.
6.Stock taken for Mr. Wong's own use is $1,100. Such a transaction has not yet been recorded.
7.It is estimated that one-third of the driving time is for private purposes.
8.5% of the outstanding accounts at the year end is thought to be uncollectible.
9.There was no error made in the recording of business transactions for the year.
Required:
(a)Prepare a Trading and Profit and Loss Account for the year ended 31 December 2003.
(b)Prepare a Balance Sheet as at 31 December 2003.
(c)Explain the meaning and the significance of Working Capital.
第1题
Question 5
Mr. Wong is a small manufacturer of bicycles in Hong Kong. His business incurred the following costs for the year ended 31 December 2003.
$
Materials (100% variable) 300,000
Labor (25% variable) 200,000
Selling & distribution cost (20% variable) 50,000
Other costs (fixed) 170,000 720,000
Normally, the business sells 3,000 units at $300 each:
Required:
(a)Calculate the breakeven point in units and dollar sales.
(b)Calculate the contribution to sales ratio.
(c)Calculate the margin of safety in percentage.
第4题
Question 4
Chan promised to pay his nephew $5,000 if his nephew would refrain from drinking liquor and using tobacco until the nephew should be 21 years of age. The nephew took Chan's words seriously, and abandoned drinking and smoking. After the nephew celebrated his 21st birthday, he asked Chan to pay the amount promised, Chan refused.
Could the nephew sue Chan for breach of the contract?
第6题
Question 6
Assume that GDP grew from $120 billion in 1994 to $160 billion in 1995 and the GDP deflator from 100 in 1994 to 130 in 1995.
(a)Calculate the rate of growth of nominal GDP for 1995.
(b)Calculate the rate of growth of real CDP for 1995.
(c)What is the inflation rate for 1995?
第7题
Question 4
Suppose you are in charge of a toll bridge that is essentially cost free. The demand for bridge crossings Q is given by P=12-2Q.
(a)Draw the demand curve for bridge crossings.
(b)How many people would cross the bridge if there were no toll?
(c)What is the loss of consumer surplus associated with the charge of a bridge toll of $6?
第10题
Question 7
Who loses from inflation? Please describe carefully.
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