Garnet Company, Inc. Comparative Statements of Financial Position As of the year ended December 31, 2022 Assets Cash 2022 2021 P 94,190.00 P Accounts receivable Inventory Prepaid expenses 55,400.00 131,000.00 62,700.00 70,400.00 154,000.00 34,152.00 19,860.00 Total current assets 314,742.00 306,960.00 Land 157,500.00 157,500.00 Equipment 225,750.00 192,500.00 Accumulated depreciation - Equipment 75,125.00 48,125.00 Buildings 275,000.00 275,000.00 Accumulated depreciation - Buildings 82,550.00 68,750.00 Total 815,317.00 P 815,085.00 Liabilities and Equity Accounts payable Long-term notes payable Ordinary shares, P5 par value Share Premium Accumulated Profits and Losses Treasury shares Total 41,800.00 47,250.00 270,000.00 360,000.00 ? 150,000.00 ? 56,415.00 ? 250,500.00 ? 49,080.00 ? 815,085.00 Sales for 2022 were P503,950 and cost of goods sold was 60% of sales. Furthermore, depreciation for the year was P48,400 and other expenses was P73,100. During the year, equipment costing P19,000 with accumulated depreciation P7,600 (already included in the total depreciation of P48,400) at the time sale was sold for P12,580 cash. Additionally, new equipment was bought during the year. The corporate tax rate was 25%, and Garnet pays 40% of its after tax profits as dividends. During the year Garnet issued ordinary shares with a par value of P47,300 for P71,545. The decrease in the notes payable represents the installment payment made for this year. P12,430 worth of shares were re-acquired by the company. Given this information, construct the firm's 2022: 1) Compute for Garnet, Inc.'s profit after income tax for the year 2022. 2) Compute for the amount of dividends paid by Garnet, Inc. during the year. 3) Construct Garnet, Inc.'s Statement of Shareholders' Equity for the year 2022. 4) Construct Garnet, Inc.'s Statement of Cash Flows for the year 2022.
Garnet Company, Inc. Comparative Statements of Financial Position As of the year ended December 31, 2022 Assets Cash 2022 2021 P 94,190.00 P Accounts receivable Inventory Prepaid expenses 55,400.00 131,000.00 62,700.00 70,400.00 154,000.00 34,152.00 19,860.00 Total current assets 314,742.00 306,960.00 Land 157,500.00 157,500.00 Equipment 225,750.00 192,500.00 Accumulated depreciation - Equipment 75,125.00 48,125.00 Buildings 275,000.00 275,000.00 Accumulated depreciation - Buildings 82,550.00 68,750.00 Total 815,317.00 P 815,085.00 Liabilities and Equity Accounts payable Long-term notes payable Ordinary shares, P5 par value Share Premium Accumulated Profits and Losses Treasury shares Total 41,800.00 47,250.00 270,000.00 360,000.00 ? 150,000.00 ? 56,415.00 ? 250,500.00 ? 49,080.00 ? 815,085.00 Sales for 2022 were P503,950 and cost of goods sold was 60% of sales. Furthermore, depreciation for the year was P48,400 and other expenses was P73,100. During the year, equipment costing P19,000 with accumulated depreciation P7,600 (already included in the total depreciation of P48,400) at the time sale was sold for P12,580 cash. Additionally, new equipment was bought during the year. The corporate tax rate was 25%, and Garnet pays 40% of its after tax profits as dividends. During the year Garnet issued ordinary shares with a par value of P47,300 for P71,545. The decrease in the notes payable represents the installment payment made for this year. P12,430 worth of shares were re-acquired by the company. Given this information, construct the firm's 2022: 1) Compute for Garnet, Inc.'s profit after income tax for the year 2022. 2) Compute for the amount of dividends paid by Garnet, Inc. during the year. 3) Construct Garnet, Inc.'s Statement of Shareholders' Equity for the year 2022. 4) Construct Garnet, Inc.'s Statement of Cash Flows for the year 2022.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Garnet Company, Inc.
Comparative Statements of Financial Position
As of the year ended December 31, 2022
Assets
Cash
2022
2021
P
94,190.00
P
Accounts receivable
Inventory
Prepaid expenses
55,400.00
131,000.00
62,700.00
70,400.00
154,000.00
34,152.00
19,860.00
Total current assets
314,742.00
306,960.00
Land
157,500.00
157,500.00
Equipment
225,750.00
192,500.00
Accumulated depreciation - Equipment
75,125.00
48,125.00
Buildings
275,000.00
275,000.00
Accumulated depreciation - Buildings
82,550.00
68,750.00
Total
815,317.00 P
815,085.00
Liabilities and Equity
Accounts payable
Long-term notes payable
Ordinary shares, P5 par value
Share Premium
Accumulated Profits and Losses
Treasury shares
Total
41,800.00
47,250.00
270,000.00
360,000.00
?
150,000.00
?
56,415.00
?
250,500.00
?
49,080.00
?
815,085.00
Sales for 2022 were P503,950 and cost of goods sold was 60% of sales.
Furthermore, depreciation for the year was P48,400 and other expenses was P73,100.
During the year, equipment costing P19,000 with accumulated depreciation P7,600
(already included in the total depreciation of P48,400) at the time sale was sold for
P12,580 cash. Additionally, new equipment was bought during the year. The corporate
tax rate was 25%, and Garnet pays 40% of its after tax profits as dividends.
During the year Garnet issued ordinary shares with a par value of P47,300 for
P71,545. The decrease in the notes payable represents the installment payment made
for this year. P12,430 worth of shares were re-acquired by the company.
Given this information, construct the firm's 2022:
1) Compute for Garnet, Inc.'s profit after income tax for the year 2022.
2) Compute for the amount of dividends paid by Garnet, Inc. during the year.
3) Construct Garnet, Inc.'s Statement of Shareholders' Equity for the year 2022.
4) Construct Garnet, Inc.'s Statement of Cash Flows for the year 2022.
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