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Sunday, April 11, 2021

Makasana – Bhakti Enterprise [MBE] Depreciation Worksheet 3

Makasana – Bhakti Enterprise [MBE]

 

Business management worksheet

Makasana-Bhakti Enterprises[MBE] is a joint venture in Dubai, has been successfully running a huge chain of conglomerate business projects like health, construction, eduction, entertainment, etc. One of the prestigious projects is education. MBE has a chain of schools from preschool to college education. The group has around 50,000 students.

 MBE has fixed assets with an original value of $800,000. All fixed assets of the MBE are depreciated with an annual rate of 17%.

 

MBE’s Profit and Loss Account for the  year 2019

                                                                                      

 

$

Revenue

x

Less: Cost of Sales

(350,000)

GROSS PROFIT

350,000

Less: Expenses

(200,000)

NET PROFIT BEFORE INTEREST AND TAX

y

Less: Interest

(10,000)

NET PROFIT BEFORE TAX AND AFTER INTEREST

140,000

Less: Tax

(25,000)

NET PROFIT AFTER INTEREST AND TAX

115,000

(-) Dividend

(35,000)

RETAINED PROFIT

80,000

 Questions:

 

a)    Identify two external stakeholders of MBE

[2 marks]

b)    With reference to  MBE Explain two  advantages of joint venture

 

[ 4 marks

c)    Calculate the missing figures ‘x’ and ‘y’.

[ 2 marks]

d)    Prepare the revised profit and loss account for MBE incorporating the amount of depreciation.

 

[ 6 marks]

e)    Explain two differences between straight-line method and reducing balance method

[ 4 marks]

f)     Calculate gross profit margin and net profit margin.

[ 4 marks]

 

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