Having gone through the principles II class, imagine you are an intern at Floro agro florists and its end year. The Warehouse Manager is overwhelmed with work and realizes that you can just be the perfect person to help him with inventory-related issues after he realizes a glitch in some year's records. The information for the years in question has been provided as follows; 2018 2019 2020 Current Assets = 1,000 1,250 1,750 Non-Current Assets = 5,000 6,250 8,750 Total Assets = 6,000 7,500 10,500 Long term Liabilities = 2,000 2,500 3,500 Revenue = 1,000 1,250 1,750 Cost of Sales 40% on cost for all the Years Assume that ending Inventory was overstated by K1, 500 in 2018 and Understated by K10, 000 ends of 2019. Required a. Calculate the Cost of goods sold for the years 2018, 2019, and 2020 b. Calculate the Owners Equity value for the years 2018, 2019 and 2020 c. Calculate the correct values for the below-listed items in 2018 and 2019 indicating the effect with an explanation. i. Current Assets ii. Non-current Assets iii. Total Assets iv. Long term Liabilities v. Owners Equity vi. Revenue vii. Cost of sales viii. Gross Profit
Having gone through the principles II class, imagine you are an intern at Floro agro florists and its end year. The Warehouse Manager is overwhelmed with work and realizes that you can just be the perfect person to help him with inventory-related issues after he realizes a glitch in some year's records. The information for the years in question has been provided as follows;
2018 2019 2020
Current Assets = 1,000 1,250 1,750
Non-Current Assets = 5,000 6,250 8,750
Total Assets = 6,000 7,500 10,500
Long term Liabilities = 2,000 2,500 3,500
Revenue = 1,000 1,250 1,750
Cost of Sales 40% on cost for all the Years
Assume that ending Inventory was overstated by K1, 500 in 2018 and Understated by K10, 000
ends of 2019.
Required
a. Calculate the Cost of goods sold for the years 2018, 2019, and 2020
b. Calculate the Owners Equity value for the years 2018, 2019 and 2020
c. Calculate the correct values for the below-listed items in 2018 and 2019 indicating the effect with an explanation.
i. Current Assets
ii. Non-current Assets
iii. Total Assets
iv. Long term Liabilities
v. Owners Equity
vi. Revenue
vii. Cost of sales
viii. Gross Profit
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