FIN621 Mid Dec 2010 Paper

Total quizs=32
MCQs =28
1 Question = 2 numbers
2 Questions =3 numbers
1 Questions = 5 numbers
Question:
Calculate the cash flow from operations, (5 Marks)
Calculate Depreciation using Straight line Method if Cost =100000, Residual Value is= 10000,Estimated Life = 5 years, (3 Marks)
Calculate Depreciation using Declining Balance method till 2003 from 1999. if Cost =100000, Residual Value is= 10000,Estimated Life = 5 years is purchased on march 29, 1999. (3 Marks)

Another Paper:-

question#1 (3)

A company acquired land by issueing 500,000 of capital stock.what will the transaction be disclosed in the company statenment of cash flows,if yes in which section.


question#2 (3)
A accountant of the large corporation said the company computes depreciation(i 4get not sure question)
question#3(5)
Patterson Company reported net income for the current year of Rs. 666,000. During the year the company’s accounts receivable increased by Rs. 50,000, inventory decreased by Rs. 23,000, accounts payable decreased by Rs. 55,000, pre-paid expenses increased by Rs. 35,000, and accrued expenses payable increased by Rs. 14,000. Determine the amount of cash provided by or used for operating activities by the indirect method.
question#4

On 15, 2001, ABC Company sold 1,000 printers to another company. Immediately prior to this sale, the perpetual inventory records of the company for the printers included the following cost layers.


Purchase date
Quantity
Unit Cost
Total Cost
Dec. 12, 2000
600
Rs. 9.25
Rs. 5,550
Jan. 9, 2001
900
Rs. 9.50
8,550
Total on hand
1,500

Rs. 14,100






Instructions:
Prepare a separate general entry to record the cost of printers, assuming that the company uses the following methods.
Answer:
a. FIFO

(2.5)

DR

CR