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1. The following information relates to RDK Ltd. for the year 2020: Interest Expense Operating Expenses Sales Cost of Goods Sold $ 12,000 70,000 525,000
1. The following information relates to RDK Ltd. for the year 2020: Interest Expense Operating Expenses Sales Cost of Goods Sold $ 12,000 70,000 525,000 200,000 If businesses pay a flat rate of 25% for income taxes, calculate the following for RDK Ltd for the year 2020: (Please show workings) i. Gross Profit (1 mark) ii. Operating Profit (1 mark) iii. Net Profit (3 marks) 3. Chief & Deputy recorded Net Profits of $34,000 for the financial year 2021. The company's Statement of Financial Position as at the end of 2020 and 2021 reveal the following: Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Gross Plant & Equipment Accumulated Depreciation TOTAL ASSETS Accounts Payable Accrued Expenses Total Current Liabilities Mortgage Preferred Stock Common Stock Retained Earnings TOTAL LIABILITIES & EQUITY 2020 $ 89,000 64,000 112,000 10,000 275,000 238,000 (40,000) 473,000 85,000 68,000 153,000 70,000 0 205,000 45,000 473,000 2021 $ 100,000 70,000 100,000 10,000 280,000 311,000 (66,000) 525,000 90,000 63,000 153,000 0 120,000 205,000 47,000 525,000 Prepare a Statement of Cash Flows for Chief & Deputy to reflect the net change in cash over the two financial years. (10 marks) 2. An extract from the financial statements of Moonlight Entertainers reveals the following: $ Dividends Paid 25,000 Increase in Accounts Receivable 65,000 Increase in Inventories 5,000 Increase in Common Stock 27,000 Net Income 120,000 Decrease in Gross Non-Current Assets 55,000 Depreciation Expense 20,000 Increase in Accounts Payable 40,000 Prepare the section of the statement to show the Net Cash Flows from Operations for Moonlight Enterprise
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