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N. de MEN IL QUESTION 3 a. Identify the following transactions as either Capital Expenditure or Revenue Expenditure. 1). Pay salary and wages for November 2020 amounting to RM6,200. ii). Purchase vehicle for business use amounting to RM145,000. iii). Depreciation expense for financial year ended 2020 amounting to RM21,000. iv). Purchase stationery for office use amounting to RM450. v). Acquire a building amounting to RM520,000. vi). Repair office door amounting to RM800. (12 marks) b. The Statement of Cash Flows comprises of three (3) activities, which are operating activities, investing activities and financing activities. Classify the following items according to its respective activity in the Statement of Cash Flows. i). Loss on sale of furniture ii). Cash paid for purchasing inventory iii). Proceed from sales of equipment iv). Depreciation expense v). Cash paid for salary and wages vi). Increase in accounts receivable vii). Purchase of vehicle viii). Proceed from issuance of bond ix). Increase in inventory x). Decrease in accounts payable C. The following is comparative information extracted from the Balance Sheet of Meg Maju Sdn Bhd as at December 31, 2019 and 2020. 31/12/2019 31/12/2020 Cash and cash equivalents $ 23,000 $ 26,000 Accounts receivable 16,000 12,600 Inventories 8,000 9,700 REN Prepaid expenses 3,300 2,100 Equipment 12,000 9,000 III Accumulated depreciation (2,800) (1,900) Accounts payable 5,200 3,600 Accrued salary 3,500 3,500 Additional Information: i). Net income for 2020 was $12,360. ii). Equipment is depreciated at 10% with no residual value (hint: calculate depreciation for financial year ended 2020). iii). In January 2020, equipment that cost $3,000, with a net book value of $1,800 was sold for $1,500. Note: ignore depreciation for the equipment sold for financial year ended 2020 (hint: calculate gain/loss on sale of equipment). Required: Prepare the operating activities section of the statement of cash flows using indirect method for Megah Maju Sdn Bhd for the year ended 31 December 2020. (10 marks) d. The following data is extracted from Maigax Company's accounting information: RM Revenue Expenses Net income Average total assets Average total liabilities Average total equity 125,000 33,250 49,600 437,000 277,000 160,000 You are required: i). Compute return on equity. (3 marks) ii). Compute asset turnover. (3 marks) e. State two (2) specific benefits of Accounting Information Systems (AIS) to ease accountants in preparing financial statements. (4 marks)