25000, the ending invento nning inventory, and purch se discount is 4% of the ne ad 970/
25000, the ending invento nning inventory, and purch se discount is 4% of the ne ad 970/
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q/ The following data was extracted from Al-Bayariq Trading Company at the
end of 2020 :
The beginning inventory is 225000, the ending inventory is 10300, the purchases
represent 150% of the beginning inventory, and purchases returns is 23% of the
total purchases, and purchase discount is 4% of the net purchases.
As for sales, they represented 87% of cost of goods available for sale, and the
returns were 7% of sales, and the discount was 10% of sales.
Note that the operating expenses were 20,000 represented in the following
expenses (selling expenses 5,000, depreciation 7,000, selling commissions
4,000, administrative expenses 4,000)
The company's profits obtained from the Miqat Company at the end of the year
are 20000, the rental revenues is 10000, the interest expense is 5000, and the
income tax is 19% of the net income, and dividends declared are 20000.
Note that the transportation expenses for purchases and sales were 40,000,
distributed in a ratio of 2:3.
Required: Calculate the retained earnings at the end of the period on December
31, 2020
Note / The company started its commercial activity on 1/1/2020
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