ChallengeMe Pty Ltd is a manufacturer of tennis equipment and fashion wear. The statement of financial position as at 30 June 2020 and details of expenses and revenues for the year ending 30 June 2020 are as follows:
Statement of nancial position as at 3010M 2020 2020 2019 ($6113) ($000) Currentossets Cash 135 274 Inventory 2,774 2,486 Prepayments 115 - Accounts receivable 2,897 2,654 Allowance of doublful debts [150] [120! Total current assets 5,771 5,294 Non-current assets Investment - associated company 1,050 - Investments 1,216 948 Land 1,500 1,750 Buildings 800 300 Accumulated depreciation - buildings (2(1)) (160) Plant and equipment 1,025 768 Accumulated depreciation - plant and equipment (100) (548) Deferred tax asset 312 302 Total non-curre nt assets 5,603 3,860 Total assets 11.374 9,154 Current liabilities Accounts payable 1,637 1,483 Accruals 1,575 1,110 Lease liability 5 - Income tax payable 243 83 Provision for employee entitlements 205 298 Provision for deferred payments (relating to investment in Squash Pty Ltd) 50 - Provision for warranty 314 - Total current liabilities 4,029 2,974 Nan-can'ent liabilities Lease liability 15 - Deferred tax liability 240 75 Borrowings 3,500 3,8m Total non-current liabilities 3,755 3,875 Total liabilities 7,784 6,840 Netassets 3,590 2,315 Statement of nancial position as at SOJune 2020 (cont) 2020 2019 (5M) (5000} Shareholders' equity Share capital 2,750 2,000 Retained earnings 280 130 Revaluation surplus 560 175 Total shareholders' equity 3,590 2,115 Statement of prot or loss and other comprehensive income for the year ending whine 2020 2020 2019 [$0001 ($0002 Income Sales 31,394 27,345 Dividends income 51 47 Expenses Bad debts [90) (85) Cost of sales (28,205) (24,611) Doubtful debts (35) (40) Inventory write-off (50) 0 Warranty expenses (taken to provision for warranty) (314) 0 Depreciation - Building (40) (40) - Plant and equipment (1(1)) (60) Interest [315) (418) Rent (6!!!) (6m) Salaries and wages {1.324) (1,231) Finance charges (7) (90) Protbefore tax 365 218 Income tax [215) - Prot oftertox 150 213 Other comprehensive income Reduction in revaluation surplus as a result of reduction in value ofland (17S) - Increase in revaluation surplus as a result of increase in value of plant and equipment 560 - Total comprehensive income 535 218 Statement ofdlongu in equityfor the year ending NJune 2020 Share Retained Revoiuotion copitoi earnings surplus To to! [$6092 (sang [$0001 [$0002 Opening balance 1.Iuly 2019 MI]! 130 115 2,315 Statement of profit and loss and other comprehensive income - 150 385 535 Issue of shares as part consideration for acquisition of associated company 750 - - 750 Balance SOJune 2020 2,750 zoo 560 3,5!)
