EXERCISE 7: PREPARING FINANCIAL STATEMENTS Prepare the following four financial statements for Linden International Inc. for 2012: 1. Statement of income 2. Statement of comprehensive income 3. Statement of changes in equity 4. Statement of financial position Income tax expense Increase in property revaluation Current assets Cost of sales Distribution costs $ 600,000 35,000 6,500,000 7,500,000 900,000 Common shares issued 895,000 Accumulated other comprehensive income/(loss) beginning of year Finance costs 90,000 Stock-option compensation 40,000 Profit before taxes Retained earnings (end of year) 1,750,000 5,000,000 Scanned by CamScanner Dividends paid Financial Spreadsheets: Excel 81 150,000 Other income 40,000 Gross profit 3,500,000 Share capital (end of year) 3,395,000 Contributed surplus (beginning of year) 60,000 Non-current liabilities 5,000,000 Change in currency translation (income) 40,000 Retained earnings (beginning of year) 4,000,000 Administrative expenses 800,000 Total liabilities 8,000,000 Total assets 16,500,000