PRTC - Final PREBOARD Solution Guide (2 of 2)
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PROFESSIONAL REVIEW & TRAINING CENTER Management by EXCEL PROFESSIONAL SERVICES,INC. OPEN FINAL PREBOARD APRIL !"#, $% SOLTION MANAGEMENT ADVISOR' SERVICES SET B Sta(t) at N*.+ SET A 1. D 7. B 2. B 8.D 3. A 9.C 4. D 10.B 5. D 11.B 6. B 12.D
13.A 14.D 15.A 16.D 17.D 18.B
19.B 20.C 21.B
22. An)e(- C Cash from Sale of: April 0.7 x 60, 000 ar!h 0.2 x 70, 000 "e#r$ar% 0.08 x 50, 000
42, 000 14, 000 4, 000 60, 000
23. An)e(- D "ixe& '( per $)i* +125, 00012, 500 Cos* of oo&s sol& a* s*a)&ar&: 11, 500 x /12 10 24. An)e(- C C - /6 3.9 6 BS - /1.4 .35
- 10 - 253, 000
35 +4
25. An)e(- B Co)*ri#$*io) mari) 50, 000 x /5 3.50 ess ess:: A&& A&&i* i*io io)a )all pro pro* * /50, /50, 000 000 x 5 x 0.07 0.07 A&&i*io)al xe& !os*s Selli) pri!e - +3.500.70
75, 000 17, 17, 500 500 57, 500 - +5.00
26. An)e(- C A shor*er !al!$la*io) *o )& sales is *o !omp$*e *he pro* mari). he pro* mari) - Co)*ri#$*io) ari) ra*io x mari) of safe*% ra*io +ro* mari) - 20 x 40 8 Sales - +ro*+ro* mari) Sales /60, 0000.08 750, 000
27. An)e(- C he *o*al sales ree)$e ree)$e per mix is /12 x +5.25 /10 x +7.50 /6 /6 x +12.25, or +211.50 *he *o*al aria#le !os* per mix is /12 x +4.85 /10 x +6.95 /6x +10.335, or +189.80 *he *o*al !o)*ri#$*io) mari) per !omposi*e $)i* is +211.50 p189.50, or +21.70. he !omposi*e $)i*s are: +75, 950+21.70 - 3, 500. 28. An)e(- A eise& !o !o)*ri#$*io) ma mari) 20 20, 00 000 x 1.15 x /7;1 138, 00 000 "ixe& !os* /105, 000 19, 200 124, 200 eise& pro* 13, 800 +rior pro* 35, 000 De!rease i) pro* 21, 200 129. An)e(- A Brea)faora#le ol$me aria)!e 34. An)e(- C A#sorp*io) i)!ome ess "ixe& 'erhea& i) &e!rease i) i)e)*or% /18, 000 15, 000 x 2.50 ?)!ome, @aria)!e !os*i)
12, 500 12, 250 250
65, 000 12, 500 52, 200
35. An)e(- B he &iisio) is opera*i) opera*i) a* !apa!i*% /ero /ero ex!ess ex!ess !apa!i*%. A)% $a)*i*% of pro&$!*io) *o #e *ra)sferre& *o *he Diisio) m$s* #e a* +13 A)% pri!e #elo= +13, as *ra)sfer pri!e, =o$l& &e!rease i*s pro*. 36. An)e(- C "i)al selli) pri!e #% Compo ess a&&i*io)al pro!essi) !os* a axim$m ma*erial !os* /*ra)sfer pri!e 37. An)e(- B Dire!* ma*erials Dire!* la#or @aria#le oerhea& Aoi&a#le xe& oerhea& o*al o*al relea)* !os* !os* *o ma)i*s a= ma*erials, 1111 A&& +$r!hases a= ma*erials aaila#le for $se ess ra= ma*erials, 123111 /s$eee 000 Goo&s pla!e& i) pro!ess ess =orsi) 9: +@ of re)*al pa%me)*s 118 +@ of G@ +@ of + +@ of >@
34, 797 1, 000 35, 797
Cash Ho= 8, 000
+@" a* 9 3.8897
+@
3, 600
0.6499
3, 600
0.6499
2, 340 33, 475 2, 340 35, 797
31,
he i)*eres* ra*e impli!i* i) *he lease is *he &is!o$)* ra*e *ha*, a* *he i)!ep*io) of *he lease, !a$ses *he area*e prese)* al$e of /a *he mi)im$m lease pa%me)*s a)& /# *he >@ *o #e e$al *o *he s$m of /i *he "@ of *he lease& asse* a)& /ii a)% i)i*ial &ire!* !os*s of *he lessor. L$es*io) Fo.37 A +ro* $)&er opera*i) lease /As re!or&e& e)* i)!ome Depre!ia*io) M/+34, 797 +2, 0008N ?DC amor*ia*io) /+1, 0005
8, 000 /4, 100 /200 3, 700
+ro* $)&er )a)!e lease /Sho$l& #e ?)*eres* i)!ome /+35, 797 K 9 'er /$)&er
3, 222 478
L$es*io) Fo.38 B Comp$*a*io) of prese)* al$e of + +@ re)*al pa%me)*s 8, 000 3.8897 31, 118 +@ of G@ 3, 600 0.6499 2, 340 +@ of + 33, 457 he +@ of *he + is 96 /+33, 475+35, 797 of *he fair al$e of *he lease& asse*. Amor*ia*io) s!he&$le /ease Da*e +a%me)* ?)*eres* /9 +ri)!ipal CA 1111 33, 457 123111 8, 000 3, 011 4, 989 28, 468 123112 8, 000 2, 562 5, 438 23, 030
L$es*io) Fo.39 A Cos* G$ara)*ee& resi&$al al$e Depre!ia#le amo$)* ease *erm A))$al &epre!ia*io)
33, 457 /3, 600 29, 857 5 5, 971
L$es*io) Fo.40 D xpe)ses $)&er opera*i) lease /As re!or&e& e)* expe)se 8, 000 xpe)ses $)&er )a)!e lease /Sho$l& #e ?)*eres* expe)se 3, 011 Depre!ia*io) 5, 971 8, 982 'er /$)&er /982 herefore, pro* is oers*a*e& +'B F'.9 maeri!)re!or&e& !os* /+32, 000 +6, 400 x 60 520 ess "air @al$e of repossesse& mer!ha)&ise 600 s*ima*e& ai) is )o* re!o)ie& /is &eferre& *o poi)* of sale + /2,080
+11, 13,
14.D o*al
+are)*
FC?
"@ of S Corp
+2, 300, 000
+1, 800, 000
+550,
B@ of )e* asse*s
/1,200, 000
/960, 000
/240,
x!ess
1, 100, 000
/840, 000
260,
?)!rease i) FA
/770, 000
/616, 000
/154,
000 000 000 000 Goo&=ill
+330, 000
+224, 000
+56, 000
15.A Fe* pro* /+1, 500, 000 800, 000 88, 000 35, 000 42, 000 25, 500 3, 750 +505, 750 16.B S( 2 B@, 123109 /+180, 000 +120, 000 +50, 000 +370, 000 A&& >)amor*ie& i)!rease i) )e* asse*s /+60, 000 +20, 000 40, 000 S( I "@, 123109 +410, 000
FC? i) )e* asse*s
+102, 500
'r: FC?, 123109 /+360, 000 x 25 /+120, 000 x 25 /+50, 000 x 25 /+20, 000 x 25 +102, 500 17.C FC? i) )e* asse*s, 123109 +102, 500 /+180, 000 x 25 /+60, 000 x 25 /+20, 000 x 25 +127, 500 herefore C? - /+3, 584, 000 +1, 024, 000 +127, 000 +2, 432, 500 18.C Fe* i)!ome of ial Co. /2, 400, 000 1, 000, 000 Fe* i)!ome of A)&res from &a*e of a!$isi*io) *o e)& of %ear 000 o*al *o #e repor*e&
3, 400, 000 800, 4, 200,000
?) some !ases *he a!$ire& !ompa)% is )pai& #ala)!e 7, 800 DG+ /7, 800 x 40 /3, 120 >)re!or&e& !os* 4, 680 @al$e of repossesse& mer!ha)&ise 3, 000 o*al G+, )e* of loss o) repossessio) 200 Comp$*a*io) of ross pro* ra*e 2010 - 54, 000 135, 000 - 40 2011 - 161, 500 425, 000 - 38 ?)s*allme)* sales ess: Cos* of i)s*allme)* sales ?, a)$ar% 1 +$r!hases epossessio)s ?, De!em#er 31
115, 44, 85,
1, 680 244,
425, 000 70, 000 555, 000 4, 000 /95, 000
Cos* of re$lar sales /385, 000 x 70 500 Gross pro* o) i)s*allme)* sales 500
/269, 000
263, 161,
20.A Cos* of *he a!$isi*io) +160, 000 ess of fair al$e of )e* asse*s /+80, 000 +120, 000 +20, 000 180, 000 ?)!ome from a!$isi*io) +/20, 000 Ge)erall%, *he #oo< al$e is *he fair al$e if pro#lem is sile)*. 21.D ?f all par*)ers re!eie a share i) *he !ash &is*ri#$*io)s i* mea)s *heir #ala)!es hae #ee) re&$!e& *o *heir + ra*io so all s$) s$#se$e)* !ash &is*ri#$*io) =ill #e i) *heir + ra*io 22.D ?f )o oo&=ill is re!o)ie& Capi*al #ala)!es ?)*eres* sol& Amo$)* sol& Share i) *he ai) /90, 000 84, 000 Cash *o #e re!eie& Ei*h oo&=ill Capi*al #ala)!e Goo&=ill /90, 00020 420, 000 A&O$s*e& !api*al ?)*eres* sol& Amo$)* sol&
K 252, 000 20 50, 400 3, 600
W 126, 000 20 25, 200 1, 800
42, 000 20 8, 400 600
54, 000
27, 000
9, 000
252, 000 18, 000
126, 000 9, 000
42, 000 3, 000
270, 000 20 54, 000
135, 000 20 27, 000
45, 000 20 9, 000
23.D Cos* of oo&s aaila#le for sale ess: XCos* of oo&s sol& "i)ishe& oo&s, $)e 30
190, 000 140, 000 50, 000
Cos* of oo&s ma)$fa!*$re& Eor< i) pro!ess, $)e 30 Eor< i) pro!ess, $)e 1 o*al ma)$fa!*$re& !os*
120, 000 30, 000 /40, 000 110, 000
a*erials, $)e 1 +$r!hases
15, 000 33, 000
o*al aaila#le for $se a*erials, $)e 1 ?)&ire!* ma*erials $se& Dire!* ma*erials $se&
48, 000 /19, 000 /1, 000 28, 000
24.A oss spoile& $)i*s !hare& *o all pro&$!*io) 'rii)al !os* of or&er 90, 000 ess: Cos* of spoile& $)i*s /90, 0005, 000 - 18 x 200 3, 600 Cos* of remai)i) oo& $)i*s 86, 400 Cos* per $)i*
86, 4004, 800 - 18, 000
oss o) spoile& $)i*s !hare& *o spe!i! Oo# 'rii)al !os* of *he or&er /200x 15
90, 000 3, 000
Cos* of remai)i) oo& $)i*s Cos* per $)i* 87, 0004, 800 - 18.125
87, 000
25.C 'rii)al !os* of *he or&er Dii&e #% Cos* per $)i* 'rii)al !os* A&&i*io)al !os* &efe!*ie $)i*s a*erials /4 x 100 a#or /12 x 100 'erhea& /24 x 100 x 12 200 o*al !os* of or&er Dii&e #% Cos* per $)i*
200, 000 1, 000 $)i*s 200.00 400 600 1, 200
2, 200 202, 1, 000 $)i*s 202.20
26.A Goo&=ill, 123110 /+100, 000 x +1.00 +100, 000 ?mpairme)* loss /20, 000 ! +1.20 /24, 000 Fe* amo$)* +76, 000 Goo&=ill, 123111 /+80, 000 x +1.25 100, 000 ra)sla*io) &iere)!e, ai) +24, 000 27. "air al$e of i)es*me)*, 123110 +29, 000 ess orii)al !os* of i)es*me)* ?)!rease i) fair al$e
15, 000 +14, 000
28.A Cos* mo&el $i*% mo&el
/+15, 000 +150 +15, 150 /+15, 000 +150 +2, 000 +4, 500 17, 650
29.D >)res*ri!*e& ee)$es e!lassi!a*io) xpe)ses Fe* ee!*
emp es*ri!*e& ee)$es
+35, 000 /35, 000 + ;
+ /35, 000 ; + /35, 000
30.D >)&er FGAS, all o#lia*io)s m$s* #e e)*ere& i) *he appropria*e reis*r% /A's =he) i)!$rre& 31.A $ipme)* +1, 428, 000 A!!o$)*s pa%a#le +1, 431, 000 "orex loss + /3, 000 32.B "orex ai) +4, 000 Asse* Cash se**leme)* +9, 000
: $ro 100, 000
x
+14.28
: $ro 100, 000
x
+14.31
: $ro 100, 000
x
+14.31 +14.28
: $ro 100, 000
x
/+14.32 +14.28
: $ro 100, 000
x
/+14.41 +14.32
33.B Fe* forex loss : $ro 100, 000 000 Cos* of he&i) : $ro 100, 000 +4, 000 34.B "C 300, 000 +9, 000 ai)
x
35.A a!hi)er% 000
"C 200, 000 x
x
/+14.32 +14.28 x
+ /4,
/+14.32 +14.28
/+1.65 +1.62
+0.34
+68,
A+, 8111 000 "orex ai) +4, 000 A+, 10111
"C 200, 000 x
+0.34
"C 200, 000 x
/+0.4 +0.32
"C 200, 000 x
+68,
+0.32
+64, 000
36.C Choi!e A is i)!orre!* &eferre& &is!o$)* is i) #e!a$se *his is a premi$m si*$a*io) *he for=ar& ra*e is #ier *ha* *he spo* ra*e a* i)!ep*io). Choi!e B is i)!orre!* #e!a$se if *he *ime al$e !ompo)e)* is *a)realie& hol&i) ai) /loss a!!$m$la*e& 'C? 20, 000 L$es*io) Fo.13 C Cos* 1, 120, 000 Share of pro*: >)a&O$s*e& /+252, 000 x .2 50, 400 Amor*ia*io) of ex!ess M/+1.12 +.8410N /28, 000 22, 400 Dii&e)&s re!eie& /+56, 000 x .2 /11, 200 Carr%i) amo$)*, 123111 1, 131, 200 L$es*io) Fo.14 D +@ of pri)!ipal /+2, 000, 000 x .6209 +@ of i)*eres* /+2, 000, 000x .12 x 3.7908 792 +@, 1111 ess premi$m amor*ia*io), 11 ;21 Fomi)al i)*eres* /+2 x 12 x 112 e!*ie i)*eres* /+2, 151 x 592 x 10 x 112 +$r!hases pri!e, 1111 A!!r$e& i)*eres* o*al amo$)* pai&
1, 241, 800 909, 2, 151, 592 20, 000 17, 930
2, 070 2, 149, 522 20, 000 2, 169,522
L$es*io) Fo.15 A Sales pro!ee&s 400, 000 Carr%i) amo$)* i)es*me)* sol& M/+2, 000, 000 +100, 000 x .1 210, 000 Gai) &isposal 190, 000 L$es*io) Fo.16 C "@ a&O$s*me)* ai) /loss 2011 /+350, 000 +400, 000 000
50,
L$es*io) Fo.17 B +AS39 para 95 /# s*a*es *ha* i)ee!*ie por*io) /i.e. +24, 000 x .1 of *he ai) or loss o) *he he&i) i)s*r$me)* shall #e re!o)ie& i) pro* or loss. L$es*io) Fo.18 C A))$al &eposi* /+6, 000,0006.34
946, 372
L$es*io) Fo.19 C "a!e al$e /+1, 000 x 1, 000 1, 000, 000 >)amor*ie& &is!o$)*, 7111 M/+1 +96' x 410N /16, 000 Carr%i) amo$)*, 7111 984, 000 e*ireme)* pri!e /+1 x 1.0 1, 010, 000 Gai) /loss o) #o)& re*ireme)* /26, 000 L$es*io) Fo.20 C Fo*es pa%a#le !$rre)* por*io) 50, 000 ?)*eres* pa%a#le /+250, 000 x .1 x 612 12, 500 o*al amo$)* *o #e repor*e& as !$rre)* lia#ili*ies, 123111 62, 500 L$es*io) Fo.21 B C$m$la*ie i)!ome, 63011 /+360, 0003 x2 240, 000 ess !$m$la*ie re)* re!eie&, 63011 /+60, 000 +90, 000 150, 000 A!!r$e& re)* re!eia#le, 63011 90, 000 L$es*io) Fo.22 C Depre!ia*io) expe)se for 2011/35, 5206
5, 920
L$es*io) Fo.23 A C$rre)* seri!e !os* /+105, 000 x 1.5209 x .01 x .9 x .7513 ?)*eres* !os* +B', 123110 /+100, 000 x 1.2155 x .01 x .8 x .6830 664 K &is!o$)* ra*e 10 Amo$)* *o #e re!o)ie& i) 2012 pro* or loss
1, 080 66 1, 146
L$es*io) Fo.24 C eise& +B', 123111 /+105, 000 x 1.2155 x .01 x .8 x 68302, 160 e!or&e& +B', 123111 /+664 +1, 146 1, 810 A!*$arial loss *o #e re!o)ie& i) 2012 'C? 350 L$es*io) Fo.25 A B-1 /F? .3B - .3 /F? B - .3 /5, 000, 000 B - 1, 500, 000 ; .3B B - 1 M5, 000, 000 /1, 500, 000 .3BN .3B
B - 1 /5, 000, 000 1, 500, 000 .3B .3B B - 1 /3, 500, 000 .3B .3B B - 350, 000 .03B .3B B - 350, 000 .33B 67B - 350, 000 0.67 B - 522, 388 L$es*io) Fo. 26 B Compe)sa*io) expe)se ;2011 M/60, 000 x +72N 000 L$es*io) Fo.27 D Fo &efe!*s /+0x .95 i)or repairs /10 x .1 x .03 aOor repairs /10 x .09 x .02 o*al
210,
; 30, 000 180, 000 210, 000
Earra)*% proisio), 123111 /+210, 000 x 1.06 x .05 x 0.95238 000
106,
L$es*io) Fo.28 D a
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