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Indigo Limited Statement of Financial Position As at December 31, 2019 and 2018 2019 2018 Assets Current assets Cash Accounts receivable Inventory Prepaid insurance Total current assets $22,500 100,000 57,500 15,000 $15,000 127,500 22,500 22,500 187,500 472,500 $660,000 195,000 Property, plant and equipment, net Total assets 600,000 $795,000 Liabilities Current liabilities Accounts payable Salaries payable Total current liabilities $60,000 37,500 $97,500 112,500 210,000 $75,000 60,000 $135,000 225,000 360,000 Noncurrent liabilities Total liabilities Shareholders' Equity Ordinary shares, $100 par Retained earnings Total shareholders' equity Total liabilities and equity $435,000 150,000 _585,000 $795,000 $225,000 75,000 300,000 $660,000 Indigo Limited Income Statement For the year ended December 31, 2019 2019 Sales (all on credit) Less: Cost of goods sold Gross profit Less: Operating expenses Operating profit Less: Income tax expense $600,000 315,000 285,000 82,500 202,500 40,500 $ 162,000 Profit for the year

Indigo Limited Statement of Financial Position As at December 31, 2019 and 2018 2019 2018 Assets Current assets Cash Accounts receivable Inventory Prepaid insurance Total current assets $22,500 100,000 57,500 15,000 $15,000 127,500 22,500 22,500 187,500 472,500 $660,000 195,000 Property, plant and equipment, net Total assets 600,000 $795,000 Liabilities Current liabilities Accounts payable Salaries payable Total current liabilities $60,000 37,500 $97,500 112,500 210,000 $75,000 60,000 $135,000 225,000 360,000 Noncurrent liabilities Total liabilities Shareholders' Equity Ordinary shares, $100 par Retained earnings Total shareholders' equity Total liabilities and equity $435,000 150,000 _585,000 $795,000 $225,000 75,000 300,000 $660,000 Indigo Limited Income Statement For the year ended December 31, 2019 2019 Sales (all on credit) Less: Cost of goods sold Gross profit Less: Operating expenses Operating profit Less: Income tax expense $600,000 315,000 285,000 82,500 202,500 40,500 $ 162,000 Profit for the year

FINANCIAL ACCOUNTING
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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Calculate the ratios int image 2

Indigo Limited Statement of Financial Position As at December 31, 2019 and 2018 2019 2018 Assets Current assets Cash Accounts receivable Inventory Prepaid insurance Total current assets $22,500 100,000 57,500 15,000 $15,000 127,500 22,500 22,500 187,500 472,500 $660,000 195,000 Property, plant and equipment, net Total assets 600,000 $795,000 Liabilities Current liabilities Accounts payable Salaries payable Total current liabilities $60,000 37,500 $97,500 112,500 210,000 $75,000 60,000 $135,000 225,000 360,000 Noncurrent liabilities Total liabilities Shareholders' Equity Ordinary shares, $100 par Retained earnings Total shareholders' equity Total liabilities and equity $435,000 150,000 _585,000 $795,000 $225,000 75,000 300,000 $660,000 Indigo Limited Income Statement For the year ended December 31, 2019 2019 Sales (all on credit) Less: Cost of goods sold Gross profit Less: Operating expenses Operating profit Less: Income tax expense $600,000 315,000 285,000 82,500 202,500 40,500 $ 162,000 Profit for the year
Transcribed Image Text:Indigo Limited Statement of Financial Position As at December 31, 2019 and 2018 2019 2018 Assets Current assets Cash Accounts receivable Inventory Prepaid insurance Total current assets $22,500 100,000 57,500 15,000 $15,000 127,500 22,500 22,500 187,500 472,500 $660,000 195,000 Property, plant and equipment, net Total assets 600,000 $795,000 Liabilities Current liabilities Accounts payable Salaries payable Total current liabilities $60,000 37,500 $97,500 112,500 210,000 $75,000 60,000 $135,000 225,000 360,000 Noncurrent liabilities Total liabilities Shareholders' Equity Ordinary shares, $100 par Retained earnings Total shareholders' equity Total liabilities and equity $435,000 150,000 _585,000 $795,000 $225,000 75,000 300,000 $660,000 Indigo Limited Income Statement For the year ended December 31, 2019 2019 Sales (all on credit) Less: Cost of goods sold Gross profit Less: Operating expenses Operating profit Less: Income tax expense $600,000 315,000 285,000 82,500 202,500 40,500 $ 162,000 Profit for the year
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