Below is a list of the general ledger account totals from the trial balance at the end of 2020 for the business.

Name of Account Dr Cr

Cash ?

Inventory 15,000

Accounts Receivable ?

Prepaid Lease 0

Property Plant & Equipment ?

Accumulated Depreciation ?

Suppliers Accounts Payable 28,000

Taxes Payable 0

Interest Only Bank Loan 55,000

Contributed Capital 10,000

Retained Earnings ?

Credit Sales 175,000

Cash Sales 30,000

Cost of Goods Sold 88,000

Wages Expense 29,000

Lease Expense 8,000

Utilities Expenses 5,000

Interest on Bank Loan 3,000

Dividends Paid 50,000

Except for the cost of goods sold and new taxes, assume that all expenses are paid for in cash. The business had new equipment purchases during 2020 of $5,000 and depreciation on all property, plant & equipment is calculated using the reducing balance method with an annual depreciation rate of 35%.

a. If the business pays a flat tax rate of 28%, construct a Statement of Financial Performance for the business for 2020 show: i)gross profit ii) operating profit iii) net profit after tax

b.Show the journal entries for recording the new taxes payable.

c. Calculate the total inventory purchases for 2020 and the total cash amounts paid to suppliers.

d.If total cash receipts from accounts receivable were $175,000, calculate the end of year balance for accounts receivable.

e. Based on all of the above information, construct an updated Statement of Financial Position for the business at the end of 2020. Note the Businesss final cash position will be a balancing item assuming all of the other information has been processed correctly.

f. Based on all of the above information, construct a Statement of Cashflows for 2020 and check that the balance sheet cash position is correct.

Please explain answers.

1. gross profit ii) operating profit iii) net profit after tax