Business Management

CONFIDENTIAL

BM/SEP 2011/FIN242/262/260

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

FUNDAMENTALS OF FINANCE FIN242/262/260 SEPTEMBER 2011 3 HOURS

INSTRUCTIONS TO CANDIDATES 1. This question paper consists of two (2) parts PART A (2 Questions) PART B (5 Questions)

Answer ALL questions in PART A and any three (3) questions from PART B in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: i) ii) iii) the Question Paper an Answer Booklet - provided by the Faculty a four - page Appendices

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 7 printed pages

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL

2

BM/SEP 2011/FIN242/262/260

PART A

QUESTION 1 Below are financial statements for Q.A.E. Berhad for the financial year ending 2010. Q.A.E BERHAD BALANCE SHEET AS AT 31 DECEMBER 2010 (RM) Cash Accounts receivable Inventory Prepaid expenses Fixed assets Less: Depreciation Patent 33,500 49,200 40,750 30,000 39,750 11,250 25,000 Account payable Taxes payable Notes payable Accruals Debentures Mortgage Bonds Mortgage Loan Preferred stock Common stock Retained Earning TOTAL CLAIMS 23,000 12,000 15,000 20,000 57,000 15,000 8,450 7,500 8,000 41,000 206,950

TOTAL ASSETS

206,950

Q.A.E. BERHAD INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2010 (RM) Revenue Less: Cost of goods sold Gross profit Less: Selling and administrative expenses General expenses Interest expenses Net profit before tax Less: Tax Net profit after tax Industry Average Ratios Current ratio ACP Debt ratio Net Profit Margin 2.50 X 60 days 50% 12.50% Quick Ratio Fixed Asset t/over Times interest earned Return on Asset 2.00 X 9.50 X 6.5 X 5.50 % 250,000 150,000

100,000 53,400 25,000 2,600

19,000 10,000 9,000

© Hak...