QUESTION The following trial balance was extracted from the books of Chipumalanga Enterprises as at 31 Lember, 2019 Dr

Particulars

Purchanes

Sales

Dewings

Reuma inwarh Returns outwards

the allowed Discounts received

Deh

Cros

Stock

Freehold premises at cit Mobil vehicles utmost

Furniture att

Provision for depreciation on motor vehicles Provision for depreciation on fumitur

Cash at bank Cash in hand

The in

14,100% 7.300.00

10.200.0

45.000.00

14.300.00

46,00000

12,00000 5000

1.40

Saluties 40.60000

Carriage inwards

Carriage outwands Printing and the y

22.200.00 10 000

3.600.00

Electricity and water 14.9000 HIKI ND

Institute

General expenses Provision for bad debt

34. VOD

Bad debt witten off 400.00

Capital Reni received

Commission received

The following information should be taken into account

Suck ut 31st December 2019 wus valuet ut Tsts 31, 800UK0,

680 300.00

Cr. Tahsin

S17,000.00

6200.00

8,400.00

37,100.00

4.500.00

200.00

11,200.00 680.300.00

ti) Acersed expenses at 31/12/2019 were salaries T S X 000 and electricity Tsh MX

Prepaid expenses at 31/12/2010 were insurance Tshs. 400.X) and general expenses Tshs.500,XI

(iv) Adjust mavision for bad debt to 24 debts and create provision for discount

allowable at 15 of debtors

(v) Commission due but yet to he received at 31/12/2019 amounted to Tsh. 800,00

(vi) Change depreciation on Non Current assets a follows, Furniture 20 on cost and

Motor vehicles: 1 cn cOnt

(vii) Rent received in advance at 31/12/2019 mounted to 4.21,000. (vii) Godh casting Tuhs. 1.200.000 were taken by the owner for private me. This was yet lo he recorded in the books

Blue computers, a major pc manufacturer in the united states, currently has plants in kentucky and pennsylvania. the kentucky plant has a capacity of 1 million units a year and the pennsylvania plant has a capacity of 1.5 million units a year. the firm divides the united states into five markets: northeast, southeast, midwest, south, and west. each pc sells for $1,000. the firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. potential sites being considered are in north carolina and california. currently the firm pays federal, state, and local taxes on the income from each plant. federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. north carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. blue computers would like to take the tax break into consideration when planning its network. consider income over the next 10 years in your analysis. assume that all costs remain unchanged over the 10 years. use a discount factor of 0.1 for your analysis. annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in table 5-13. (a) if blue computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? how should the network be structured? (b) if blue computers sets an objective of maximizing after-tax profits, where should they build the new plant? how should the network be structured? variable production and shipping cost ($/unit) annual fixed cost northeast southeast midwest south west (million$) kentucky 185 180 175 175 200 150 pennsylvania 170 190 180 200 220 200 n. carolina 180 180 185 185 215 150 california 220 220 195 195 175 150 demand ('000 units/month) 700 400 400 300 600