ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.11 : Let an Accounting Equation to be : Assets = Liabilities + Equity of Owner. In a biochemical engineering organization, its account balance sheet contains the following information : Accounts payable $2200; accounts receivable $1500; line of credit $500; cash $100; long term debt $3800; inventory $1300; investments $800; plant equipment $6800. Find the equity of owner by applying Accounting Equation.
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.11 : Total asset = accounts receivable $1500 + cash $100 + inventory $1300 + investments $800 + plant equipment $6800 = $10500. Total liabilities = accounts payable $2200 + line of credit $500 + long term debt $3800 = $6500. Equity of owner = total assets - total liabilities = $10500 - $6500 = $4000. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
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MASS TRANSFER - EXAMPLE 4.2 : In a non-dilute absorber, graphical method is used to represent the process. In an X - Y coordinate system, X-axis represents mole of carbon dioxide / mole of water and Y axis represents mole of carbon dioxide / mole of nitrogen. The inlet gas stream consists of 8 mol % of carbon dioxide in nitrogen. (a) Find the S / G minimum as a slope that goes through the point (0, 0.0304) and (0.0000488, 0.086957). (b) Find the actual slope of operating line when it is 1.5 times the S / G minimum! (c) Find the value of x for inlet gas stream when y = 1640 x, y is mole fraction of carbon dioxide in nitrogen.
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ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.12 : You, as an engineer, buy a piece of biochemical instrument to start a servicing business. The instrument has a useful life of 3 years, that costs $60k. The instrumental business generates $100k per year. The labor costs $50k per year. The $60k new instrument depreciates in its value evenly up to 3 years, thereafter the old instrument needs to be replaced by another piece of new instrument. (i) In the first year of this engineering business : (a) what is its starting cash? (b) calculate the depreciation value of the instrument. (c) find the operating profit generated. (d) what is the capital expense of the business? (e) calculate the cash from operation. (f) calculate the ending cash. (ii) Based on the income statement of the business in the second year : (a) find the capital expense of the business. (b) what is its starting cash? (c) calculate the depreciation value of the instrument. (d) find the operating profit generated. (e) calculate the cash from operation. (f) calculate the ending cash.
ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.35 : A voluntary accountant is performing Du Pont Analysis for a charitable engineering organization. References for 3-step Du Pont formula are : (ROE) = (Net Income $) / (Equity $), where ROE is Return On Equity. (ROS) = (Net Income $) / (Sales $), where ROS is Return On Sales. (Asset Turnover) = (Sales $) / (Assets $). (Leverage) = (Assets $) / (Equity $). From the balance sheet and income statement, the company has Assets of $3753.19 this year and $3216.86 last year. Sales for this year is $2292.34. Let ROE = 0.37 and ROS = 0.21. (a) Calculate the Asset Turnover of the organization. (b) Find the value of the organizational Leverage. (c) Calculate the Net Income $ of the organization.
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