Help me provide a proper statement with notes
Page 2 of 5 PROBLEM 2. STATEMENT OF COMPREHENSIVE INCOME The alphabetical list of items that may be relevant in the preparation of a statement of comprehensive income of Paper Rings Company is provided below: Actuarial gains on defined benefit pension plans recognized outside P 1,333 profit and loss Decrease in the inventories of finished goods and work in progress 107,900 Depreciation and amortization expense 17,000 Employee benefits expense 43,000 Exchange differences - gain on translating foreign operations financial 10,667 statements Finance costs 18,000 Gains on property revaluation 3,367 Income tax expense 32,000 Income tax relating to components of other comprehensive income 9,334 Loss for the year from discounted operations 30,500 Other expenses 5,500 Other income 11,300 Raw materials and consumables used 92,000 Revenue 355,000 Share of other comprehensive income of associates (unrealized loss 700 on available-for-sale financial assets) Share of profit of associates (Hint: this must be included in the income 30,100 from operations) Unrealized gain on available-for-sale financial assets 26,667 Unrealized loss on derivatives in an effective cash flow hedge 4,000 Work performed by the entity and capitalized 15,000 Requirement: Prepare a Statement of Comprehensive Income in good form with the accompanying notes to financial statement. Page 3 of 5Page 3 of 5 PROBLEM 3. STATEMENT OF CASH FLOWS Cornelia Street Corporation has recently decided to go public and has hired you as an independent CPA. One statement that the entity is anxious to have prepared is a statement of cash flows. Financial statements of Cornelia Street Corporation for 2018 and 2019 are provided below. 12/31/2019 12/31/2018 Cash P 153,000 P 72,000 Accounts receivable 135,000 81,000 Merchandise inventory 144,000 180,000 Property, plant, and equipment (net of accumulated 108,000 246,000 depreciation of P120,000 and P114,000 respectively as of 12/31/2019 and 12/31/2018 respectively) P 540.000 P 579.000 Accounts payable P 66,000 P 36,000 Income taxes payable 132,000 147,000 Bonds payable 135,000 225,000 Share capital 81,000 81,000 Retained earnings 126,000 90,000 P 540.000 P 579.000 Income Statement For the Year Ended December 31, 2019 Sales P 3,150,000 Cost of sales 2.682,000 Gross profit P 468,000 Selling expenses P 225,000 Administrative expenses 72,000 297,000 Income from operations P 171,000 Interest expense 27.000 Profit before taxes 144,000 Income taxes 36.000 Profit P 108.000 The following additional data were provided: 1. Dividends for the year were P72,000. 2. During the year, equipment was sold for P90,000. This equipment costs P132,000 originally and had a book value of P108,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Requirement. Prepare a Statement of Cash Flows in good form with the accompanying notes to financial statement. 4/5 Page 4 of 5
