For this assignment, you are provided with basic financial information about a fictional company and are asked to prepare three financial statements for the company. You are then required to discuss the financial health and position of the organisation.

Below, you will find two important documents: the opening statement of financial position and a provisional trial balance for the fictional company.

Remember that the trial balance has been prepared at the end of the year, but note that the retained earnings and inventories balances included are still those figures relating to the start of that year.

International Financial Reporting and Analysis Week 2: Assignment Hand-in Assignment For this assignment, you are provided with basic financial information about a fictional company and are asked to prepare three financial statements for the company. You are then required to discuss the financial health and position of the organisation. Below, you will find two important documents: the opening statement of financial position and a provisional trial balance for the fictional company. Remember that the trial balance has been prepared at the end of the year, but note that the retained earnings and inventories balances included are still those figures relating to the start of that year. Additional information: An inventory count established that the value of closing inventories on 31 December 2009 was 6,000. All of the dividends declared during 2009 (and charged as an expense) were paid in that same year, as was the interest expensed for 2009. Statement of financial position as at 31 December 2008 Non-current assets Land Buildings Less: Accumulated depreciation 10,000 15,000 (8,000) 7,000 12,000 29,000 Investments Current assets Inventories Accounts receivables Cash and cash equivalents Current liabilities Accounts payable Tax payable Net current assets 4,000 5,000 68,000 77,000 25,000 5,000 30,000 47,000 Total assets less current liabilities 76,000 Equity Common stock Retained earnings Trial Balance: 31 December 2009 Accounts Cash and cash equivalents Sales revenues Purchases Long-term investment Accounts payable Opening inventory (01.01.09) Land Buildings Accumulated depreciation Accounts receivable Depreciation expense Utilities expense Tax expense Interest expense Tax payable Wages expense Common stock Retained earnings at start of year (01.01.09) Totals 50,000 26,000 76,000 Debit 57,000 Credit 95,000 22,000 15,000 19,000 4,000 10,000 18,000 9,000 10,000 1,000 20,000 3,000 1,000 2,000 40,000 50,000 26,000 201,000 201,000 Required: 1. Using the above information, prepare an income statement for the company for the year to 31 December 2009. 2. Prepare a statement of financial position for the company as at 31 December 2009. 3. Prepare a cash flow statement for the company for the year to 31 December 2009, using the indirect method and in accordance with IAS 7. 4. Discuss what inferences can be drawn from the above three statements in relation to the company's financial position. Use the Turnitin link below to submit your assignment by Day 7. Please do not worry if the Turnitin Report generated distorts the appearance of your numerical calculations / financial statements; your instructor can also access the original submission as a \".doc\" or \".docx\" file