Question
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
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 19670
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
Gross profit = 117,000
Operating profit = 73,250
Depreciation on plant and equipment = 1750
income tax expense = 19670
net profit after tax = 50,580
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%.
Question: Based on all of the above information, construct an updated Statement of Financial Position for the business at the end of 2020 and a Statement of Cashflows for 2020 and check that the balance sheet cash position is correct.
* Note the Businesss final cash position will be a balancing item assuming all of the other information has been processed correctly.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started