DIY Sdn Bhd is a Malaysian tax resident company. DIY is involved in manufacturing bricks. DIY needs to know regarding sales tax implications in the manufacturing business. The company plans to import special high-grade stones and carry out a change in the nature and quality of the materials by glazing them before sale. DIY's current sales is RM350,000 and is projected to be around RM400,000 for the next few years
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- DIY Sdn Bhd is a Malaysian tax resident company. DIY is involved in manufacturing bricks. DIY needs to know regarding sales tax implications in the manufacturing business. The company plans to import special high-grade stones and carry out a change in the nature and quality of the materials by glazing them before sale. DIY’s current sales is RM350,000 and is projected to be around RM400,000 for the next few years a(i) Explain whether DIY Sdn Bhd activities will fall within the scope of manufacturing activities for sales tax purposes. a(ii) Discuss on the sales tax registration requirement and advice whether DIY need to be registered.Azree an accountant, working for a foreign consultant firm and earning RM 78,000 per year is contemplating giving up his job and set up his own tax consultant firm. He estimates that renting an office would cost RM 780 per month, hiring a secretary with salary RM 1,500 per month and purchasing for required supplies would cost him RM 10,000 per annum. He estimated that his total revenues for the year would be RM 120,000. a) Calculate the explicit cost and implicit costDavao has a potential foreign customer that has offered to buy 1,500 tons at P450 per ton. Assume that all of Davao’s costs would be at the same levels and rates as last year. What net income after taxes would Davao make if it took this order and rejected some business from regular customers so as not to exceed capacity? Answer: 221,500 Without prejudice to your answers to previous questions, and assume that Davao plans to market its product in a new territory. Davao estimates that an advertising and promotion program costing P61,500 annually would need to be undertaken for the next two or three years. In addition, a P25 per ton sales commission over and above the current commission to the sales force in the new territory would be required. How many tons would have to be sold in the new territory to maintain Davao’s current after-tax income of P94,500? Answer: 307.5
- Davao has a potential foreign customer that has offered to buy 1,500 tons at P450 per ton. Assume that all of Davao’s costs would be at the same levels and rates as last year. What net income after taxes would Davao make if it took this order and rejected some business from regular customers so as not to exceed capacity? Without prejudice to your answers to previous questions, and assume that Davao plans to market its product in a new territory. Davao estimates that an advertising and promotion program costing P61,500 annually would need to be undertaken for the next two or three years. In addition, a P25 per ton sales commission over and above the current commission to the sales force in the new territory would be required. How many tons would have to be sold in the new territory to maintain Davao’s current after-tax income of P94,500? If the sales volume is estimated to be 2,100 tons in the next year, and if the prices and costs stay at the same levels and amounts next year, the…1.Davao has a potential foreign customer that has offered to buy 1,500 tons at P450 per ton. Assume that all of Davao’s costs would be at the same levels and rates as last year. What net income after taxes would Davao make if it took this order and rejected some business from regular customers so as not to exceed capacity? 2. If the sales volume is estimated to be 2,100 tons in the next year, and if the prices and costs stay at the same levels and amounts next year, the after-tax income that Davao can expect for next year is ? 3. The breakeven volume in tons of product for the year is ?QUESTION FOUR (a)Belta manufacturers in China produce car engines. They have been in the business for almost 20 years. They have been profitable enough to employ more staff and increase their production. But with a recent loan taken to facilitate automation, investors want to know how the company is doing. Their total assets are worth K3, 500,000 while they have current assets of K9, 200,000. Their current liabilities stand at K5, 000,000 while retained earnings amount to K800, 000. Earnings before Interest and Tax come to K6, 500,000. Sales total K8, 300,000 while the market value of equity is K7, 000,000.The company has 1,000,000 equity shares outstanding with par value of K5.These shares are now selling at K7 per share. Calculate the Altman z-score for the company and advise. (b)The risk incurred by a bank when the maturities of its assets and liabilities are mismatched is called interest rate risk. (i) Describe two types of interest rate risks (ii) Describe any three methods…
- 114-One of Oman based company is about to start investment in the international market. The company is very old in Oman but new in international market. It is also one of the requirements of the international market to shift accounting standards to International financial reporting standard. The company is not taking this task as challenge because a. Only terminologies will be changed b. None of the options c. The process does not require much efforts d. Training staff on shifting to this standard doesn't cost muchScenario: You have just been hired by the country of "Shorelinia" to create a tax system. Your tax system must collect at least $1,000 billion in revenue. You have three taxes to choose from; income tax, sales tax, and payroll tax. c) You must decide the SalesTax. For reference, state and local sales taxes around Seattle add up to approximately 10%, some of the highest in America. In the USA, there is no national sales tax, although a number of countries have them, also known as VATs (value added taxes) or GSTs (general sales taxes.) Sales tax revenue (in billions of $) at various tax rates 0% 2% 4% 6% 8% 10% 12% revenue $0 $60 $120 $180 $240 $300 $360 The sales tax rate in Shorelinia will be _______%. (fill in space below) d) Sales tax revenue Look up the tax revenue generated by your chosen tax rate in the table above. The sales tax revenue will be $_______billion. (fill in space below) e) Payroll Tax rate In the country of Shorelinia, the payroll tax is…16) please help me!! I don't know how to do it One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently being assembled at your plant. The supplier has bid $0.10 per part, given a forecast you provided of 200,000 parts in year 1; 400,000 in year 2; and 500,000 in year 3. Shipping and handling of parts from the supplier's factory is estimated at $0.03 per unit. Additional inventory handling charges should amount to $0.005 per unit. Finally, administrative costs are estimated at $30 per month. Although your plant is able to continue producing the part, the plant would need to invest in another molding machine, which would cost $20,000. Direct materials can be purchased for $0.06 per unit. Direct labor is estimated at $0.05 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at $0.009 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $30,000. Finally, management has insisted that…
- question 1 JamCore Investments has completed their 2021 financial year which ran from the 1 May 2020. The company sells masks and sold 1 000 000 masks (2020:20 000) at a price of N$10 (2020:5). The company also manufactures the masks, the cost of sales in 2021 is N$ 1, 200% less than the prior. They managed to decrease the cost of sales by using cheaper and thinner fabric. a. Compare the gross profit margin for 2020 and 2021?b. Comment on any ethical considerations you may have? c.Can ethical qualities be attributed to corporations?(3 reasons to support claim)Alam Damai Sdn Bhd (Alam Damai), a well-known restaurant, hired an expert from Australia, Mr Andrew, in order to advice on work process and to give guidance on ways to improve the equipment used by Alam Damai in their kitchen, starting from 1 July 2013. In order to perform the service, Mr Andrew will be spending around 80 days in Malaysia. Alam Damai will be paying RM200,000 to Mr Andrew in 2013. There is no double tax agreement between Malaysia and Australia. Alam Damai closes its accounts annually to 30 June. 2(a)(i) With regard to Mr AndrewBy taking Mr Andrew resident status into consideration, discuss why the technical fee payable to him is derived from Malaysia 2(a)(ii) Discuss accordingly the tax mechanism and how much he will be taxed. 2(b)(i) With regard to Alam Damai Provide opinion on why fee payment made to Mr Andrew can be regarded as capital and revenue. 2(b)(ii) Alam Damai need to comply with certain tax requirement pertaining to the fee payment made to Mr Andrew, discuss…Part A A software company is considering launching a new product in the market. To record consumer behavior, the company participated in two domestic software fairs in Athens and Thessaloniki that costed €7,000. The results showed that there are two Scenarios (A and B) whose probabilities of occurrence are 60% and 40% respectively, based on consumers’ willingness to buy the new product. To start production, €100,000 is required for new machinery, plus another €2,000 for transport costs and €1,000 for installation costs. This is a state-of-the-art technology machinery, thus, its economic life is only two years. The new machinery will be fully depreciated at the end of its economic life and the company applies the straight-line depreciation method. Table 1 shows the estimated figures on sales, variable costs, selling price, management and distribution costs and working capital needs. At the end of the second year the working capital will be recovered. Table 1: Estimated financial data…
