Question: Please Help me with Question 4 BFN2244 FINANCIAL STATEAIENT ANALYSIS 17'h February 2021 QUESTION 4 a) Use the following selected data about Comfort Bhd. and

Please Help me with Question 4

Please Help me with Question 4 BFN2244 FINANCIAL
BFN2244 FINANCIAL STATEAIENT ANALYSIS 17'h February 2021 QUESTION 4 a) Use the following selected data about Comfort Bhd. and prepare the operating cash ows of the company for the year 2020. Balances Sheet Data 2020 2019 RM RM Account receivables 34,000 42,000 Equipment 60,000 40,000 Bonds payable 50,000 100,000 Salaries payable 2,000 1,000 Prepaid expenses 5,000 3,000 Inventories 29,000 25,000 Account payable 30,000 35,000 Accumulated depreciation 10,000 16,000 Common stock 150,000 100,000 Retained Earning 38,000 20,000 Income Statement Data 2020 Net sales 390,000 Cost of goods sold 300,000 Operating expenses (excluding depreciation expense) 64,000 Net Income 10,000 Gain on sale of equipment (included in net income above) 2,000 Amortization of bond discount (included in net income above) 1,500 (15 marks) b) On 1 April 2019, K plus Berhad, a newly incorporated company, was granted a concession by the Malaysian Government. Under this concession, K plus Berhad would design, build and operate a tolled motorway for 30 years, after which it will hand over the motorway to the government for RMl. K plus Berhad secured nancing of RM200 million for the project on 4 June 2019, at which time it appointed professional consultants for the design and survey component of the project. The design work commenced on 1 July 2019 and construction began on 2 January 2020. Required: For each of the four dates referred to in the scenario, state (with reasons), whether that is (/ is not the date on which K lus Berhad reco nises the revenue income Date Revenue Recognition Reason (Yes/No) 1 April 2019 4 June 2019 l Jul 2019 2 January 2020 (10 marks) (Total: 25 marks) End of Page TBH 7/11

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!