36.4 The following balances remained in the ledger of Lungox Ltd after preparation of the income statement for the year ended 31 December 2019: £000 Inventory Accounts receivable Issued ordinary shares of £1 each 4% preference shares of £1 each Accounts payable Balance at bank 138 166 80 50 141 18 General reserve 40 Retained profits at 1 January 2019 Profit for year to 31 December 2019 Non-current assets at cost less accumulated 221 66 547 depreciation 5% loan notes, repayable 2029 Corporation tax payable Share premium 150 35 96 During the year the preference dividend for 2018 was paid in full, along with ordinary dividends amounting to 10 pence per share. The directors also wish to transfer £15,000 to general reserve. Required: (a) An extract from the Statement of Changes in Equity for the year ended 31 December 2019, showing the movement in general reserve and retained profits. (b) A balance sheet as at 31 December 2019.

36.4 The following balances remained in the ledger of Lungox Ltd after preparation of the income statement for the year ended 31 December 2019: £000 Inventory Accounts receivable Issued ordinary shares of £1 each 4% preference shares of £1 each Accounts payable Balance at bank 138 166 80 50 141 18 General reserve 40 Retained profits at 1 January 2019 Profit for year to 31 December 2019 Non-current assets at cost less accumulated 221 66 547 depreciation 5% loan notes, repayable 2029 Corporation tax payable Share premium 150 35 96 During the year the preference dividend for 2018 was paid in full, along with ordinary dividends amounting to 10 pence per share. The directors also wish to transfer £15,000 to general reserve. Required: (a) An extract from the Statement of Changes in Equity for the year ended 31 December 2019, showing the movement in general reserve and retained profits. (b) A balance sheet as at 31 December 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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swer questions Income Statement Items 2019 2016 (000'Rands) (000'Rands) Sales Depreciation and ammortisation Interest expense Operating expense Gross Profit Margin 000 480 40% %0% Tax rate 30% 30% 2019 2016 Balance Sheet (000'Rands) (000'Rands) Accounts Payable 1,500 Accounts Receivable Accumulated /Retained Profits to 00 to 00 Cash to 00 0o 00 to 00 to 00 0o 00 Inventory Long term loans Ordinary Shares Property, Plant and Equipment Short term loans to 00 0o 00 00 00
Balance Sheets 2019 2018 Assets Cash and equivalents $100 $85 Accounts receivable 275 300 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,300 1,490 Total assets $3,050 $2,125 Liabilities and Equity Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Total liabilities 825 500 Common stock 1,225 1,225 Retained earnings 1,000 400 Common equity 2,225 1,625 Total liabilities and equity $3,050 $2,125 Income Statements 2019 2018 Sales $2,065 $1,525 Operating costs excluding depreciation and amortization 1,250 1,000 EBITDA $815 $525 Depreciation and amortization 100 75 EBIT $715 $450 Interest 63 46 EBT $652 $404 Taxes (25%) 163 101 Net income $489 $303 Dividends paid $54 $48 Addition to…
2.The following information is from Dejlah, Inc.s, financial statements. Sales (all credit) were AED 800 million for 2020. Sales to total assets... 2 times Total debt to total asset: 30% Current ratio ... 3.0 times Inventory turnover 5.0 times Average collection period 18 days Fixed asset turnover-.... 5.0 times Fill in the balance sheet: Cash..... Current debt Accounts receivable .. Long-term del Inventory ... Total debt . Total current assets Equity...... Fixed assets..... Total assets Total debt and equity
19. Ebasan Company have the following account balances: Cash (net of overdraft of P100,000) Accounts receivable Accounts payable Notes payable Loans payable Income tax payable Warranty obligations Deferred revenue Cumulative, redeemable preference shares at the option of the holder Non-cumulative, non-redeemable preference shares What is the total amount considered as financial liabilities? A. 4,620,000 B. 3,620,000 C. 4,600,000 D. 4,500,000 P300,0000 450,000 1,200,000 500,000 1,800,000 120,000 180,000 240,000 1,000,000 2,000,000
Q2. The following information has been extracted from the draft financial statements of Moba limited.. MOBA LIMITED STATEMENTS OF FINANCIAL POSITION AS AT 31 JUNE 2021 2022 Non-current assets Current assets Inventory Trade receivables Bank Total assets Equity and liabilities Equity Ordinary share capital Share premium Retained earnings Non-current liabilities 10% Loan note (redeemable 31 June 2022) Current liabilities Trade payables Taxation Bank overdraft Operating profit Interest payable Profit before taxation K'000 Taxation 450 180 58 580 360 0 K'000 Κ'000 4,600 940 5.540 3,500 300 1,052 4,852 0 688 5.540 Additional information (a) The statement of profit or loss for the year ended 31 June 2022 shows the following. 500 230 170 K'000 Profit for financial year (b) During the year dividends paid were K270,000. (c) Profit before taxation had been arrived at after charging K700,000 for depreciation on DANCON assets. (d) During the year non-current assets with a net book value of K200,000…
1n. Account
a. the Statement of Comprehensive Income for the year ended 31 December2020.
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Account Accounts payable Accounts receivable Accumulated depreciation 12/31/2021 Balances 12/31/2022 Balances 27,000 19,000 51,000 46,000 95,000 125,000 Notes Paya ble 22,000 22,000 Cash Common stock Depreciation expense Equipment Income tax expense 48,000 31.000 150,000 150,000 30,000 205,000 285,000 21% of pre-tax income Inventory Rent Expense 11,000 40,000 22,000 Cost of goods sold Prepaid rent Retained earnings 233.000 10,000 16,000 22,000 ?? Revenues 385,000 Dividends of 11,000 were declared during the year Income tax expense is 21% of income before taxes а. Create an income statement for the year ended 12/31/2022 Create i (Ctrl) - sheet as of 12/31/2022 (you will need to determine ending retained earnings) b.
Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio. Please help with the both questions mentioned
The inventory decreased from year to year do you deduct or add for the cash flow statement. Please prepare cash flow statement so I can compare my answers