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Johnston Enterprises Statement of Financial Position and Income Statement Data 136,000 357,000 34.000 Expenses: Depreciation Expense Salaries and Wages Expense Interest Expense Loss on Sale

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Johnston Enterprises Statement of Financial Position and Income Statement Data 136,000 357,000 34.000 Expenses: Depreciation Expense Salaries and Wages Expense Interest Expense Loss on Sale of Equipment Income Before Taxes Less Income Tax Expense Net Income December 31, 2019 HK$1,241,000 (477.000) 764.000 December 31. 2018 HK$1,122,000 (442.000 680.000 Property, Plant, and Equipment Less: Accumulated Depreciation 154,000 391,000 34,000 17.000 288,000 119.000 HKS 169.000 255,000 102.000 HKS_153.000 Current Assets: Inventory Accounts Receivable Cash Total Current Assets 391,000 238,000 154.000 783.000 340,000 306,000 119.000 765.000 Additional Information: During the year, Johnston sold equipment with an original cost of HK$153,000 and accumulated depreciation of HK$119,000 and purchased new equipment for HKS272,000. Total Assets HK$1.547.000 HK$1.445.000 a) Calculate the dividend declared in 2019. Show your workings. (4 marks) b) Prepare The Statement of cash flows for the year ending December 31, 2019. (9 marks) e) A clerical staff asked you whether all the dividend declared in 2019 has been paid. Please Equity: Share Capital-Ordinary Retained Earnings Total Equity HKS 510,000 374.000 884.000 HKS 467,500 340.000 807.500 d) A clerical staff asked you if a transaction for cash sales in 2019 has not been recorded, how would this affect your preparation of statement of cash flow? Please advise him. (4 marks) Non-Current Liabilities: Bonds Payable 340.000 391.000 Current Liabilities: Accounts Payable Notes Payable Income Taxes Payable Total Current Liabilities 187.000 51,000 85.000 322.000 102,000 68,000 776.500 246.500 Total Liabilities 663.000 637.500 Total Liabilities & Equity HKSI.547.000 HK$1.445.000 Please at your answer of Question four in the space below. Sales Revenue Less Cost of Goods Sold Gross Profit HK$1,615,000 731.000 884,000 HK$1,513,000 731.000 782,000

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