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IT430 Quiz No. 2 Announcement

Tuesday, January 04, 2011 Posted In Edit This
QUIZ 2  Dated: Jan 04, 11

QUIZ II will be held on 10th Jan 2011 and will also remain open on 11th Jan 2011, It is advised that you attempt it as early as possible once it is available to you. Lecture # 26 to 31 will be included in the quiz.

Mgt402 GDB Solution

Tuesday, January 04, 2011 Posted In Edit This
see below solution OR download file from this address VUsolutions GDB Solution


Solution 

Raheem & Co

Department 1

FIFO method

Quantity schedule.

Units in opening work in process 200

(100% direct material ,65% conversion cost)

Units put into process 11,800 12,000

Units completed & transferred out 6,800

Units lost in process normal 700

Units loss in process abnormal 1800

Still in process will be 2700 12,000



Cost charged to department.





Cost incurred on opening work in process

Direct Material 6,600

Direct Labor 4,500

And FOH 2, 900



Cost added by departments

Direct Material 33400

Direct Labor 18500

And FOH 10100



Total cost in department 1 TOTAL 

RS. 



Direct Material (6600+33400) 40,000 

Direct Labor (4500+18500) 23,000

and FOH (2900+10100) 13,000



EQUIVELENT PRODUCTION (FIFO)



Opening WIP
Completed no of units (current period)
Closing WIP

% Of Completion
Under abnormal loss
Total

Material
0
6600
2700
1800
11100

Labor
200*35%

=70
6600
783
900
8353

FOH
200*35%

=70
6600
783
900
8353




Unit cost.
What will be unit cost for Material under FIFO costing method?

Direct material=RS. 40,000/11100=RS.3.6036
What will be unit cost for Labour under FIFO costing method?

Labour= RS.23,000/8353=RS.2.7535
What will be unit cost for Factory overhead under FIFO costing method?

FOH=RS. 13,000/8353=1.55633

What will be equivalent production units for Material under FIFO costing method?

.
Equivelent unit of production for material=11100

Fin623 Online Quiz No. 3

Tuesday, January 04, 2011 Posted In Edit This
for more SOLVED quizzes visit VUsolutions GURU


Question # 1 of 15 ( Start time: 03:18:24 PM ) Total Marks: 1 
Which one of the following is the main objective of Fiscal Policy? 
Select correct option: 

Economic Development 
Price stability 
Removal of deficit in Balance of Payment 
All of the given options 

Question # 2 of 15 ( Start time: 03:18:46 PM ) Total Marks: 1 
Utilities were exempted up to which of the following tax year? 
Select correct option: 

2004 
2005 
2006 
2007 

Question # 3 of 15 ( Start time: 03:20:09 PM ) Total Marks: 1 
Which of the following is the main tool of Fiscal Policy? 
Select correct option: 

Taxes 
Deficit Financing 
Subsidies 
Transfer Payments 

Question # 4 of 15 ( Start time: 03:20:33 PM ) Total Marks: 1 
Which of the following is the general formula for calculating tax credits? 
Select correct option: 

(A + B) x C 
(A - B) x C 
(A / B) x C 
(A / B) + C 

Question # 5 of 15 ( Start time: 03:21:11 PM ) Total Marks: 1 
Which of the following is tax, where the tax rate decreases as the amount to which the rate is applied increases? 
Select correct option: 

Proportional tax 
Progressive tax 
Regressive tax 
Corporate tax 

Question # 6 of 15 ( Start time: 03:21:27 PM ) Total Marks: 1 
Which one of the following is the general definition of tax? 
Select correct option: 

Compulsory contribution of wealth by persons 
Optional contribution of wealth by persons 
Compulsory contribution of wealth by state 
Optional contribution of wealth by state 

Question # 7 of 15 ( Start time: 03:21:46 PM ) Total Marks: 1 
Payment of Zakat is entitled to a deductible allowance according to provisions of sec.60. 
Select correct option: 

True 000
False 

Question # 8 of 15 ( Start time: 03:22:34 PM ) Total Marks: 1 
Which of the following section deal with tax treatment of person who is a cultivator or receiver of agricultural produce as rent-in-kind in the business of cultivator? 
Select correct option: 

Rule 11 of the IT Rule 2002 
Section 40 of the Income Tax Ordinance 2001 
Section 41 of the Income Tax Ordinance 2001 
Section 42 of the Income Tax Ordinance 2001 

Question # 9 of 15 ( Start time: 03:23:33 PM ) Total Marks: 1 
Agricultural income does NOT include which one of the following? 
Select correct option: 

Rent or Revenue derived by a person from land 
Income derived from land situated in Pakistan 
The land is used for agricultural purposes 
Income from spontaneous forest


Question # 10 of 15 ( Start time: 03:24:04 PM ) Total Marks: 1 
Which part of income is charged to tax of non-resident person under the income tax ordinance 2001? 
Select correct option: 

Pakistani source of income 
Foreign source of income 
Both Pakistan and foreign source of income 
None of the given option 

Question # 11 of 15 ( Start time: 03:24:25 PM ) Total Marks: 1 
Mr.John a non-resident received profit in Pakistan on a security issued by a resident person, how the profit will be treated under sec (46) of IT Ordinance 2001? 
Select correct option: 

Wholly Taxable 
Wholly Exempt 
Partly Exempt 
None of the given options 

Question # 12 of 15 ( Start time: 03:25:25 PM ) Total Marks: 1 
Any dividend is Pakistan source income if it is paid by which of the following? 
Select correct option: 

By resident Company 
By non resident Company 
By resident Individual 
By resident AOP 

Question # 13 of 15 ( Start time: 03:26:42 PM ) Total Marks: 1 
Which of the following tax is payable on merchandise imported or exported from one country to another? 
Select correct option: 

Custom duty 
Income tax 
Sales tax 
Wealth tax 

Question # 14 of 15 ( Start time: 03:27:03 PM ) Total Marks: 1 
Which of the following is the rate of tax for salaried Individuals for tax year 2009, where the taxable income exceeds Rs. 650,000 but does not exceed Rs. 750,000? 
Select correct option: 

3.50% 
4.50% 
6.00% 
7.50% 

Question # 15 of 15 ( Start time: 03:27:55 PM ) Total Marks: 1 
Special tax year is adopted after seeking approval from the ____________ under section 74(3). 
Select correct option: 

Commissioner 
Tax Officer 
Appellate Tribunal 
Supreme Court 

Question # 1 of 15 ( Start time: 03:32:13 PM ) Total Marks: 1 
Which of the following tax is paid in relation to how much you earn? 
Select correct option: 

Income Tax
Inheritance Tax 
Value added Tax 
Sales Tax

Question # 2 of 15 ( Start time: 03:32:32 PM ) Total Marks: 1 
Which of the following section of Income Tax Ordinance 2001 deals with perquisites of Income from Salary and its treatment? 
Select correct option: 

Section 11 
Section 12 
Section 13 
Section 14 

Question # 3 of 15 ( Start time: 03:33:48 PM ) Total Marks: 1 
An Individual will be termed as Short Term Resident under section 50 of the IT Ordinance 2001 provided: 
Select correct option: 

His period of stay equal to 183 days 
The employee of Federal Government 
The citizen of Pakistan 
Resident solely by reason of the individual’s employment 

Question # 4 of 15 ( Start time: 03:34:18 PM ) Total Marks: 1 
A definition that includes the dictionary meanings of the word is termed as: 
Select correct option: 

Exclusive definition 
Inclusive definition 
Both Inclusive & Exclusive definitions 
Statutory definition


Question # 5 of 15 ( Start time: 03:34:38 PM ) Total Marks: 1 
Which one of the following is the general meaning of Tax? 
Select correct option: 

Relax 
Lighten 
Relieve 
Fatigue 

Question # 6 of 15 ( Start time: 03:35:13 PM ) Total Marks: 1 
Which of the following is similar to the concept of clubbing of Incomes? 
Select correct option: 

Unification only two heads of Income 
Association of two or more heads of Income 
Splitting up of only two heads of Income 
Division of two or more than two heads of Income 

Question # 7 of 15 ( Start time: 03:35:35 PM ) Total Marks: 1 
Non-Agricultural income includes which one of the following? 
Select correct option: 

Income from sale of wild grass 
Income from fisheries 
Royalty income of mines 
All of the given options 


Question # 9 of 15 ( Start time: 03:38:04 PM ) Total Marks: 1 
Which of the following is the legal status of Al-Habib Bank Limited under section 80 of the ordinance? 
Select correct option: 

Individual 
Firm 
Banking Company 
Hindu Undivided Family


Question # 10 of 15 ( Start time: 03:38:30 PM ) Total Marks: 1 
A firm ABC maintaining its account in accrual basis, at June 27, 2008 it is entitled to receive Rs. 10,000 but actual payments made at 01 August 2008. In which year it is charged to tax? 
Select correct option: 

2006 
2007 
2008 
2009 

Question # 11 of 15 ( Start time: 03:38:53 PM ) Total Marks: 1 
Which of the following is the important content for calculating tax on income? 
Select correct option: 

Taxable Income 
Residential Status 
Tax Year 
All of the given options 

Question # 12 of 15 ( Start time: 03:39:10 PM ) Total Marks: 1 
_____________ is the payment to the holder for the right to use property such as a patent, copyrighted material, or natural resources. 
Select correct option: 

Permanent Establishment
Royalty
Dividend 
Goodwill 

Question # 13 of 15 ( Start time: 03:39:25 PM ) Total Marks: 1 
Which of the following is the rate of tax for salaried Individuals for tax year 2009, where the taxable income exceeds Rs. 4,550,000 but does not exceed Rs. 8,650,000? 
Select correct option: 

17.50% 
18.50% 
19.00% 
20.00% 


Question # 14 of 15 ( Start time: 03:39:57 PM ) Total Marks: 1 
Utilities were exempted up to which of the following tax year? 
Select correct option: 

2004 
2005 
2006 
2007 

Question # 15 of 15 ( Start time: 03:40:32 PM ) Total Marks: 1 
Which of the following is tax, where the tax rate decreases as the amount to which the rate is applied increases? 
Select correct option: 

Proportional tax 
Progressive tax 
Regressive tax 
Corporate tax

Fin630 Assignment No. 2 solution

Tuesday, January 04, 2011 Posted In Edit This
“Investment Analysis & Portfolio Management” (Fin 630)


Assignment No.02 Marks: 20


In order to analyze the performance of ABC Company, following information has been
extracted from its financial statements.
1. You are required to calculate the following ratios:
• ROA (Return on assets)
• ROE (Return on Equity)
• EPS (Earning per share)


2. Calculate the value of bond A using 15% coupon with 20-year maturity, paying 40 semiannual payments of Rs. 75 each, assuming required rate of return of 10%
3. Calculate the value of bond B using 11% coupon with 10-year maturity, paying 40 quarterly payments of Rs. 27.5 each, assuming required rate of return of 16%


Important Tips
1. This Assignment can be best attempted from the knowledge acquired after
watching video lecture no. 1 to lecture no 28 and reading handouts as well as
recommended text book).
2. Video lectures can be downloaded for free from www.youtube.com/vu.
Particular Rs. (000)
Net profit after tax 500
Total assets 8000
Common stock
100,000@ Rs. 10
1000
Retained earning 90
Current liabilities 25
Account receivables 50
Cost of goods sold 1800
Long term debt
Bond A
300@ Rs.1000
300
Bond B
200@ Rs.1000
200


Schedule


Opening Date and Time January 03, 2011 At 12:01 A.M. (Mid-Night)


Due Date and Time January 06, 2011 At 11:59 P.M. (Mid-Night)
.....................................


Solution:


ROA = 0.0625 or 6.25%
ROE = 0.5 or 50%
EPS = Rs.5 /share

value of bond A= Rs. 787.05
value of bond B= Rs. 344.42

....................
ROA = Net income Margin x Turnover
Net income margin = Net Income / sale or COGS x 100
Turnover = Sale or COGS / Total Asset
and
ROE = ROA / Leverage
Leverage = Total Assets / Share Holder Equity
and
EPS = Profit available for share holder / Average common shares
outstanding

these are formula from which we extract Answers

...................

Bond Valuation: 
The price of a bond should equal the present value of its expected cash flows. The coupons 
and the principal repayment of $1,000 are known, and the present value, or price, can be 
determined by discounting these future payments from the issuer at an appropriate required 
yield, r, for the issue. To solve for the value of an option-free coupon bond. 

P = Σ ct / (1 + r)t + FV / (1 + r) n 
i = 1 
Where; 
P = the present Value or price of the bond today (time period 0) 
c = the semiannual coupons or interest payments 
FV = the face value (or par value) of the bond 
n = the number of semiannual periods until the bond matures 
r = the appropriate semiannual discount rate or market yield
.....................
ROE = 0.5 or 50% 
EPS = Rs.5 /share 

value of bond A= Rs. 787.05 
value of bond B= Rs. 344.42 
.................... 
ROA = Net income Margin x Turnover 
Net income margin = Net Income / sale or COGS x 100 
Turnover = Sale or COGS / Total Asset 
and 
ROE = ROA / Leverage 
Leverage = Total Assets / Share Holder Equity 
and 
EPS = Profit available for share holder / Average common shares 
outstanding

...........
ANSWER:

Part AROA = Net income Margin x Turnover
Net income margin = Net Income / sale or COGS x 100
= 500 / 1800 x 100 = 27.77 

Turnover = Sale or COGS / Total Asset
= 1800 / 8000 = 0.225
RoA= 27.77 % x 0.225 = 6.24825 %

ROE = Net Income / Share Holder Equity
= 500/1000 * 100 = 50

EPS = Profit available for share holder / Average common shares outstanding = 500,000 / 100,000
EPS = 5 

Part BVB = I (PVIFA kd, n) +M (PVIFA kd, n)

I = Annual Coupon Payment

Kd = Required Return

M = Par Value

VB = I (PVIFA kd, n) +M (PVIFA kd, n)

= 75 (PVIFA 5, 40) +1000 (PVIFA 5, 40)

= 75(17.1591) + 1000 (.1420)

= 1286.9325 + 142

Value of Bond (A) = 1431.932

Part 3VB = I (PVIFA kd, n) +M (PVIFA kd, n)

VB = I (PVIFA kd, n) +M (PVIFA kd, n)

= 27.5 (PVIFA 4, 40) +1000 (PVIFA 4, 40)

= 75(19.7928) + 1000 (.2083)

= 534.4056 + 208.3

Value of Bond (B) = 742.705

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