CASE STUDY: SAP FOR ATLAM Case Summary Akademi Teknikal Laut Malaysia (ATLAM) was established on August 1981 and privatized on January 1997. ATLAM was wholly owned organization of MICT Berhad. The mission of ATLAM was to facilitate value added learning and provide excellent services to its client. In year 2001‚ the management had been asked to upgrade accounting system with the PETRA group-wide SAP system. SAP was an integrated business application package that covered most functions of an organization
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Applied Auditing Audit of Plant‚ Property and Equipment – Lecture Definition Property‚ plant and equipment are tangible items that: a) are held for use in the production or supply of goods or services‚ for rental to others‚ or for administrative purposes; and b) are expected to be used during more than one period. Recognition An item of PP&E should be recognised only if its cost can be measured reliably and it is probable that future economic benefits associated with the item will
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Inflation is assumed Chapter 1 True / False Questions 1. Inflation is assumed to be a temporary problem that does not affect financial decisions. FALSE 2. Financial Capital is composed of long-term plant and equipment‚ as well as other tangible investments. FALSE 3. Real Capital is composed of long-term plant and equipment. TRUE 4. During the 1930s‚ financial practice revolved around such topics as the preservation of capital‚ maintenance of liquidity‚ reorganization
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. . . . . . . . . $ 7‚000 Accounts receivable . . . . . . . . . . . . . . . . . . . 16‚500 Office supplies . . . . . . . . . . . . . . . . . . . . . . 2‚000 Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170‚000 Accumulated depreciation—Trucks . . . . $ 35‚000 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75‚000 Accounts payable . . . . . . . . . . . . . . . . . . . . . 11‚000 Interest payable . . . . . . . . . . . . . . . . . . . . . . 3‚000 Long-term notes
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| Expenses: | Other Than Depreciation (75% of revenue) | $8‚000‚000 | Depreciation Expense | $1‚500‚000 | Net Income | | $2‚500‚000 | b. Net Income is $2.5M as shown in part a. The Total Profit Margin is Net Income ($2.5M)/ total revenues ($12M) = Total Margin of 0.208 (20.8%). The cash flow is the net income plus the depreciation costs‚ thus $1.5M (Depreciation Expense) + $2.5M (Net Income) = Cash Flow of $4.0M. c. If the depreciation expense doubled then the Net income
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investment E11-4. Book value and recaptured depreciation Answer: Book value $175‚000 Recaptured depreciation E11-5. $124‚ 250 $50‚750 $110‚000 $50‚ 750 $59‚250 Initial investment Answer: Initial investment purchase price installation costs – after-tax proceeds from sale of old asset change in net working capital $55‚000 $7‚500 – $23‚750 $2‚000 $40‚750 CAPITAL BUDGETING PROBLEMS: CHAPTER 11 Solutions to Problems Note: The MACRS depreciation percentages used in the following problems
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which will result in the increasing of annual depreciation by $20‚000. As a result‚ the cost on factory equipment depreciation is increased from 60‚000 to 80‚000. Cost of Goods Sold is increased from 1‚770‚000 to 1‚790‚000‚ and the net income is reduced from 41‚000 to 28‚520 Case2: This action indicates the effect of renovation of factory building‚ which will result in the increasing of annual depreciation by $25‚000. As a result‚ the cost on depreciation on factory building is increased from 125‚000
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degree of financial leverage »Income Statement - Performance over some period of time * Income = Revenues – Expenses * Matching principle: production costs are matched with revenues * Noncash items: an income item (e.g.‚ depreciation) that does not affect its cash flow * Calculating Earnings and Dividends per Share * Earnings per share = Net income/Total shares outstanding * Dividends per share = Total dividends/Total shares outstanding »Taxes:
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CHAPTER 16 (fin man); chapter 1 (man) MANAGERIAL ACCOUNTING CONCEPTS AND PRINCIPLES discussion questions 1. Financial accounting and managerial accounting are different in several ways. Financial accounting information is reported in statements that are useful to persons or groups outside of a company. These statements objectively report the results of past operations at fixed periods and the financial condition of the business under generally accepted accounting principles. Managerial
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Multiple Choice—Conceptual Answer No. Description b 21. Differences between taxable and accounting income. c 22. Differences between taxable and accounting income. b 23. Determination of deferred tax expense. a 24. Differences arising from depreciation methods. a P25. Temporary difference and a revenue item. b S26. Effect of future taxable amount. c P27. Causes of a deferred tax liability. d S28. Distinction between temporary and permanent differences. b S29. Identification of deductible
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