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Magic GMBA 3 Corporation ? ? Income Statements For the Years Ended December 3 1 , 2 0 2 0 and 2 0 1 9

Magic GMBA 3 Corporation ??
Income Statements
For the Years Ended December 31,2020 and 2019
20202019
$ $
Operating revenues- Note 11,046,400972,000
Less: Cost of goods sold 484,000480,000
Gross Profit 562,400492,000
Operating expenses
Selling and administrative expenses 184,000200,000
Depreciation expense 40,00040,000
Other expense 80,00064,000
Bad debt expense 4,0003,600
Rent expense 80,00080,000
Operating expenses 388,000387,600
Net income from operations 174,400104,400
Inventory loss (40,000)
Interest expense (35,736)(35,392)
Income before tax 98,66469,008
Income tax expense (40,000)(24,000)
Net income 58,66445,008
Note 1: Operating revenue includes $84,600 gain on disposal of plant assets and other similar items.Magic GMBA 3 Corporation ??
Balance Sheets
December 31,2020, and 2019
ASSETS 20202019
$ $
Cash 113,880469,408
Accounts receivable 360,000280,000
Less: Allowance for bad debts (4,800)(4,400)
Inventory 440,000360,000
Total current assets 909,0801,105,008
Long term investment 95,60087,200
Property, plant, and equipment 752,000400,000
Less: Accumulated depreciation (152,000)(160,000)
Goodwill 120,000
Total assets 1,724,6801,432,208
LIABILITIES AND SHAREHOLDERS EQUITY
Liabilities
Accounts payable 128,00065,600
Accrued payables 112,00048,000
Unearned revenues -64,000
Total current liabilities 240,000177,600
Other long term liability- pension 58,71242,712
Bonds payable 400,000400,000
Less: Discount on bonds payable (38,944)(42,680)
Deferred income tax 25,24025,568
Total Liabilities 685,008603,200
Shareholders equity
Preferred stock 400,000400,000
Common stock 40,00040,000
Additional paid-in capital 480,000440,000
Retained earnings 263,672253,008
Less: Treasury stock (144,000)(304,000)
Total shareholders equity 1,039,672829,008
Total liabilities and shareholders equity 1,724,6801,432,2081-Prepare a cash flows statement for the operating activities for the year 2020.
2-Compute ratios that can be calculated from the data presented (2 years, trend, percentages etc.)

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