Barakah CompanyBalance Sheet as at 31st December 2019Financed by:Fixed Assets (net after depreciation)2$$Paid-up:Share CapitalRetained EarningsReserves350,500200,500150,00050,000Land & Buildings600,000155,50075,000830,500EquipmentVehiclesFixtures & FittingsLong Term Liabilities25,000751,000Current Assets125,000Accounts Receivable 215,00010,000110,00020,0001,231,000InventoryCurrentOther payablesTrade creditorsLiabilities100,000245,500PrepaymentsCash at BankCash in HandAccrued expense30.000375,5001,231.000Additional Information:i)Work-in-Progress is one sixth of the total Inventory.Prepayments is related to rental of buildings.ii)ii)Bad Debts is 5% for the year.iv)Non Muslim ownership is at 20%.Required: Determine the zakat base and due for the company using:(a) Net Current Assets method; and(b) Net Invested Fund Method.

Zakat Zakat is custom which was followed by the Muslim Community as a charity which are paid to…

Answered: Additional Information: i)…

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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The following account balances were taken from the 2021 adjusted trial balance of the Bowler Corporation: sales revenue, $325,000; cost of goods sold, $168,000; salaries expense, $45,000; rent expense, $20,000; depreciationexpense, $30,000; and miscellaneous expense, $12,000. Prepare an income statement for 2021.
For which of the following sources of income would the entire amount be required to be included in a business’ gross income and taxed in the current year? a. Prepaid rent received by a cash-method company b. Life insurance proceedsc. State and local bond interest d. None of the above
The income statement of Mid-South Logistics includes $12 million for amortized prior service cost. Does MidSouth Logistics prepare its financial statements according to U.S. GAAP or IFRS? Explain
The balance sheet of Mi-T-M reports total assets of $400,000 and $450,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%. What is Mi-T-M's net income for the year? A. $42,500 B. $85,000 C. $45,000 D. $4,250,000
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Please see the attachment for details: a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.b. What conclusions can be drawn from these data as to the company’s abilityto meet its currently maturing debts?
Assuming that a business total asset is 1/3 liabilities which includes an account payable of 50,000 how much is the total liabilities if the total equity balance is thrice as much as the accounts payable balance?
If total liabilities amount to P400,000 which 1⁄3 of the total assets, what is the amount of the residual interest of the business?
XYZ Company reported the following information for the year: Net Sales $1,000,000, Cost of goods sold $500,000, Selling expenses $200,000, General and administrative expenses $100,000, and Interest expense $50,000. Calculate the company's Earnings Before Interest and Taxes (EBIT) and Net Income.
The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities. Stockholders equity Connon stock, $5 per value. Retained earnings Total stockholders equity Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net incone before taxes Income taxes (30%) Net income $24,000 230,000 370,000 9,000 633,000 860,000 $1,493,000 $ 290,000 320,000 610,000 $150,000. 733,000 883,000 $1,493,000 $ 2,290,000 1,220,000 1,070,000 580,000 490,000 32,000 458,000 137,400 $ 320,600
Clayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…
Southern Style Realty has total assets of $485,390, net fixed assets of $250,000, current liabilities of $23,456, and long-term liabilities of $148,000. What is the total debt ratio? Can you provide the formula?
This is the financial position of Hospital AMIH, Inc. regarding the repayment of its debts. These are the most relevant data of its financial statements: Total revenues $ 245,000 Total expenses $ 145,000 Depreciation $ 10,000 Changes in receivable accounts +$ 50,000 Changes in inventory ($ 20,000) Changes in accounts payable ($ 25,000) Total current liabilities $ 30,000 Total long-term debt $ 45,000 cash flow (total margin + depreciation expense) + interest expense/principal payment + interest expense Calculate the operating cash flow.

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