Below is a Statement of Financial Position for a small business as at the end of 2020.

	($000)		($000)
Current Assets		Current Liabilities
Cash	5	Suppliers Accounts Payable	12
Inventory	27	Taxes Payable	3
Accounts Receivable	16
Prepaid Lease	2	Non-Current Liabilities
		Interest Only Bank Loan	55
Non-Current Assets
Property, Plant & Equipment	60	Equity
Accumulated Depreciation	(23)	Contributed Capital	10
		Retained Earnings	7

Below is a list of the general ledger account totals from the trial balance at the end of 2021 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		23,000
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	27,000
Lease Expense	8,000
Utilities Expenses	4,000
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 2021 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 23%, construct a Statement of Financial Performance for the business for 2021 showing:

1. 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 2021 and the total cash amounts paid to suppliers.

d.If total cash receipts from accounts receivable were $176,000, 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 2021. 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 2021 and check that the balance sheet cash position is correct.