nancial Accounting 201Example:The following information has been extracted from the financial statements ofTakeo Plastics Limited for the year ended 31 December 20X9.SalesCost of salesGross profitWages and salariesOther expenses (including depreciation GH$25,000)Interest chargesProfit before taxTax on profitProfit after taxExtracts from the statement of financial position:At 1 January20X9GH¢Trade receivablesInventoryTrade payablesAccrued wages and salariesAccrued interest chargesTax payable233,000118,000102,000a)b)8,00030,00052,000GH¢1,280,000(400,000)880,000(290,000)(350,000)240,000(50,000)190,000(40,000)150,000At 31 December20X9GH¢219,000124,000125,0005,00045,00043,000RequiredPresent the cash flows from operating activities as they would be presented in astatement of cash flows using:the direct method; andthe indirect method.

The cash flow statement is prepared to record the cash flow from various activities during the…

Example: The following information has been extracted from the financial statements of Takeo Plastics Limited for the year ended 31 December 20X9. Sales Cost of sales Gross profit Wages and salaries Other expenses (including depreciation GH$25,000) Interest charges Profit before tax Tax on profit Profit after tax Extracts from the statement of financial position: At 1 January 20X9 GH¢ Trade receivables Inventory 233,000 118,000 GH¢ 1,280,000 (400,000) 880,000 (290,000) (350,000) 240,000 (50,000) 190,000 (40,000) 150,000 At 31 December 20X9 GH¢ 219,000 124,000

Example: The following information has been extracted from the financial statements of Takeo Plastics Limited for the year ended 31 December 20X9. Sales Cost of sales Gross profit Wages and salaries Other expenses (including depreciation GH$25,000) Interest charges Profit before tax Tax on profit Profit after tax Extracts from the statement of financial position: At 1 January 20X9 GH¢ Trade receivables Inventory 233,000 118,000 GH¢ 1,280,000 (400,000) 880,000 (290,000) (350,000) 240,000 (50,000) 190,000 (40,000) 150,000 At 31 December 20X9 GH¢ 219,000 124,000

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 data were reported by Lechon Corporation during the current year.· Accounts payable, January 1- P200,000· Accounts payable, December 31- P250,000· Inventory, January 1- P400,000· Inventory, December 31- P210,000· Purchase returns and allowances- P6,000· Purchase discounts- P3,000· Payment- P800,000· Cash purchase- P10,000How much is the total cost of sales under accrual basis of accounting?
Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of merchandise sold 325,000 242,000 Selling expenses 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: Question Content Area a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent. Young Technologies Inc.Comparative Income StatementFor the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent $- Select - - Select -% $- Select - - Select -% - Select - - Select - - Select - - Select - $- Select - - Select -% $- Select - - Select -% $- Select - - Select -% $- Select - - Select -% - Select - - Select - - Select - - Select - Total expenses $fill in the blank 86d00500602205c_26 fill in the…
Agro Co.’s income statement for the year ended 31 March 2019 and statements of financial position at 31 March 2019 and 2018 were as follows: Agro Co.: Income Statement for the year ended 31 March 2019 £'000 Sales 3495 Cost of Sales (2182) Gross profit 1313 Other income: interest received 33 Distribution costs (187) Administrative expenses (309) Interest costs (75) Profit before tax 775 Income tax expense (157) Profit for the year 618 Agro Co.: Statements of Financial Position as at 31 March 2019 and 2018 2019 2018 £'000 £'000 Non-current assets Property, plant and equipment (PPE) 1700 1615 Intangible assets 425 375 Investments 0 95 Current assets Inventory 150 102 Trade receivables 1010 315 Short-term investments 75 0 Cash at Bank 452 1 Total Assets 3812 2503 Current liabilities Trade payables 289 119 Bank overdraft 143 98 Taxation 312 285 744 502 Non-current liabilities Long-term loans 170 50 Total Net Assets 2898 1951 Equity Share capital (£1 ordinary shares) 1950 1550 Share premium…
The cost of merchandise sold by Kohl's Corporation for a recent year was $12,265 million. The balance sheet showed the following current account balances (in millions): Merchandise inventories Accounts payable Balance, End of Year Balance, Beginning of Year $ 4,038 1,251 $ 3,814 1,511 Determine the amount of cash payments for merchandise.
During the fiscal year 20x4, the initial inventory of the goods of company A is 15.000 €, purchases of goods for the fiscal year 25.000,00 € and the final stock of goods 10.000,00 €. The revenue from the sales of goods is 75.000,00 €, the operating expenses 30.000,00 € and the tax rate is 40%. An employee of the accounting department registered as the final stock of goods the amount of 12.000 €. What is the effect on the cost of sales during the use of 20X4?
Judon Corp. provides the following information from its annual report. Assume all revenues are credit sales. The cost of revenues can be used as an approximation of the company's purchases for the year. Revenues $ 546,190 Cost of revenues $ 340,275 Inventories as of 31 January 2022 $44,064 Inventories as of 31 January 2021 $41,020 Accounts payable as at 31 January 2022 $58,600 Accounts payable as at 31 January 2021 $51,800 Accounts receivable as at 31 January 2022 $7,482 Accounts receivable as at 31 January 2021 $5,434 Compute the following financial ratios for Judon Corp for 2022 1. Account Receivable Turnover Ratio (Times)? 2. Collection Interval (DSO) / Days? 3. Inventory Turnover Ratio (Times) ? 4. Holding Interval (Days) ? 5. Account Payable Turnover Ratio (Times)? 6.Payment Interval (Days)? 7. Does Judon Corp need short-term financing?
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The following information is available for Tamarisk Corp. for the year ended December 31, 2022. Other revenues and gains $23,800 Other expenses and losses 4,000 Cost of goods sold 292,000 Sales discounts 4,600 Sales revenue 760,000 Operating expenses 221,000 Sales returns and allowances 10,800 Prepare a multiple-step income statement for Tamarisk Corp. The company has a tax rate of 25%.
The following data were taken from the financial statements of Tokyo Corporation: Annual Sales - P1,250,666, Cost of Goods Sold - P1,014,540, Inventory - P250,000, Accounts Receivable - P300,000 and Accounts Payable - P150,000. Compute for the Inventory Conversion Period. ______ days. Use whole number, no peso sign.
96. Accounting