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accounting

Table of Contents
Question 1 2
Question 2 8
Question 4 15
Question 5 17
Question 6 21
Reference: 27Question 1a) Prepare a balance sheet using the information given belowBalance sheet as per information Q1a
Details
Amount ($)
Amount ($)
Amount ($)
Non – current AssetsGross Fixed Assets40,000.00less: Accumulated depreciation30,000.00Net Fixed Assets
10,000.00
Current AssetsCash18,000.00Other assets5,000.00Inventories122,000.00Accounts receivable60,000.00Total CA205,000.00less : Current LiabilitiesAccounts payable
35,000.00
short term notes payable
12,000.00
47,000.00Working capital
158,000.00
Capital employed
168,000.00
Finance by Long term liability and EquityLong term notes payable10,000.00Long term bonds payable15,000.00Retained earnings100,000.00Common stock43,000.00
168,000.00
b) Cyberdomeinc has current ratio equal to 3, a quick ratio equal to 1.8, and total current asset of RM6 million what is cyberdomes’s inventory balance
c) Bistari corp. is required by a debt agreement to maintain a current ratio of at least 2.5 and bistari current ratio now is 3. Bistaricorp wants purchase additional inventory for its upcoming festive season, by using short-term debt. How much inventory can bistari purchase without violating its debt agreement if its total current assets equal to RM 15 Million
The present
current liabilities is RM 5,000,000
current assets are RM 15,000,000
According to the debt agreement the current ratio should be maintain at least 2.5. The Bistari Corp wants to buy additional inventory for its upcoming festival by using short term debt without violating it debt agreement (current ratio of at least 2.5).
If Bisari Corp want to purchase additional by using short term debt…

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