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Finance for Managers

In: Business and Management

Submitted By ChristineSharon
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Individual Assignment (40%) CHAPTER 1 : FUNDAMENTAL CONCEPT OF FINANCIAL MANAGEMENT 1. What you understand on maximization of shareholders wealth (2 M)
Maximization of shareholders wealth means
a) maximizing the firm’s value – achieving the highest possible value for the firm in the marketplace. (by making profits and avoiding losses. Economic Value Add (EVA)
b) maximizing stock price - maximization of purchasing power, accumulating as much wealth as possible, by whatever means possible.
2. You are required to complete the gaps in the following table: (5M) Assets = Capital + Liabilities (current liabilities + long term liabilities) Assets | Liabilities | Capital | 19,600 | 3,150 | 16,450 | 28,000 | 4,900 | 23,100 | 159,000 | 49,000 | 110,000 | 88,000 | 26,000 | 62,000 | 51,400 | 11,650 | 39,750 |

3. Classify the following items into Liabilities, Assets, Income and Expenses (6M)

Vehicles | Asset | Bank overdraft | Liability | Salaries | Expenses | Loan from A. Shark | Liability | A/C Payable | Liability | Machinery | Asset | Debtors | Asset | Opening Inventory | Expenses | Comm. Rec | Income | Sales | Income | Rental | Expenses | Premises | Asset | 4. Preparation of Financial statement

Jamal started a book printing business on 01/01/2009 as Jamal Printers. The following are the transactions for the year ended 31/12/09:
Date Transaction
01/01/09 Deposit RM50,000 with RHB Arabic Bank as a business capital.
15/02/09 Received RM600000 as loan from RHB Arabic Bank.
25/02/09 Bought a secondhand printing machine for RM30,000; payment by cheque.
15/03/09 Bought office furniture for RM3.000; by cheque.
10/05/09 Printed 500 books @ RM100 per book and paid RM50,000 as a printing expenses.
15/06/09 Bought 1000 books @RM100 per book from Syarikat Lina on credit.
20/07/09 Sold 400 books for RM60,000.
12/09/09

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