Question
INFORMATION Silverline Ltds Statement of Comprehensive Income for the year ended 31 December 2019 and Statement of Financial Position as at 31 December 2018 and
INFORMATION
Silverline Ltds Statement of Comprehensive Income for the year ended 31 December 2019 and Statement of Financial Position as at 31 December 2018 and 2019 are as follows:
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019
Sales (all credit) Cost of sales
R
1 152 000
(614 000)
Gross profit 538 000
Other operating income 42 000
Gross operating income Distribution expenses Administrative expenses Operating profit
Interest income Interest expense
580 000
(130 000)
(52 000)
398 000
34 000
(46 000)
Profit before tax 386 000
Income tax (92 000)
Profit after tax 294 000
SS
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:
2019
R
2018
R
ASSETS
Non-current assets 1 132 000 1 100 000
Property, plant and equipment: 1 132 000 1 100 000
Current assets 360 000 330 000
Inventories 82 000 88 000
Trade and other receivables (All accounts receivable) 200 000 212 000
Cash and cash equivalents 78 000 30 000
Total assets 1 492 000 1 430 000
EQUITY AND LIABILITIES
2019
R
2018
R
Equity 726 000 352 000
Ordinary share capital Retained earnings
480 000
246 000
300 000
52 000
Non-current liabilities 500 000 800 000
Long-term borrowings 500 000 800 000
Current liabilities 266 000 278 000
Trade and other payables 220 000 246 000
SARS: Income tax 46 000 32 000
Total equity and liabilities 1 492 000 1 430 000
Additional information
1. Additional plant and machinery were purchased during 2019. There were no other non-current asset acquisitions or disposals. Depreciation for 2019 amounted to R158 000.
2. An interim dividend of R100 000 was paid on ordinary shares during 2019. No final dividends were declared.
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