Question
Fibertech GmbH Balance sheets at 31 December x3 and x4 (amounts in 000) Dec 31, x3Dec 31, x4Non-current assets Brands5090Land200200Building and equipment, gross540580less: Accumulated depreciation-484-474Building
Fibertech GmbH Balance sheets at 31 December x3 and x4 (amounts in 000)
Dec 31, x3Dec 31, x4Non-current assetsBrands5090Land200200Building and equipment, gross540580less: Accumulated depreciation-484-474Building and equipment, net56106Total non-current assets306396Current assetsInventories250350Accounts receivable400500Prepaid insurance46Cash340239Total current assets9941095Total assets13001491Shareholders' equityShare capital170170Retained profits120426Total shareholders' equity290596Non-current liabilitiesLong-term bank loan600450Current liabilitiesShort-term portion of long-term bank loan150150Accounts payable200250Taxes payable3525Interest payable2520Total current liabilities410445Total liabilities and shareholders' equity13001491
Profit and loss year x4
DebitCredit- BBCost of goods sold14002200Total salesDepreciation expense4015Gain on sale of buildings and equipmentSelling and administration salaries240Insurance expense?Interest expense?Income taxes?336Net Income
Cash
DebitCreditBB340Receipts from customers2100?Payments to suppliersProceeds from sale of buildings and equipment45120Purchase of equipment240Payments of salaries36Prepayments of insurance60Payments of interest on loans150Loan repayment120Payments of taxes?Payments of dividends40Purchase of brandEB239
Additional note:
Fibertech estimates its brands have an indefinite life and consequently they are not amortized.
Compute the following items for year x4:(using T-accounts might be helpful)
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