Requirements: 1. Solutions for PART B.

2. Solutions for PART C.

PART B: Additional information was available after the Financial Statements in Part A were completed. Critically analyse the effect of each of the following items separately on the performance (net income/loss) and accounting equation of AKE: Depreciation to both office equipment and delivery van for a total of (a) RM35,000. (b) Unpaid salaries of RM20,000. (C) (d) (e) (f) of Available balance of office supplies in hand was RM300. A total of RM7,800 of the unearned revenue was realized. A sum of RM40,500 insurance already expired. The billing department failed to send invoices to clients for a total sum RM24,400. A new rental service for drying machines was not recorded for a total of RM15,800. Suppliers' invoices amounting to RM135,000 were misplaced and only discovered. (g) amount (h) recently PART C: 1. With the rapid expansion of AKE business, Adam is contemplating on the idea of opening 3 more branches at strategic locations in some new housing residentials. The options available are either to rent the premises or to buy them. Critically assess and explain to Adam how each of the options will be impacting the operational costs of AKE. 2. Adam is undecided whether to buy a higher volume of cleaning inventories for a better price from the suppliers or keep its existing practice of buying as-when- needed basis. The former will require additional space to store the inventories while the latter is sufficient with the existing facility. Analyse and explain to Adam what benefits and shortcomings of these two options