Question
On January 2018, Al-Arabia company for equipment and systems maintenance started with an initial cash investment of 50000 pounds. The following data was on December
On January 2018, Al-Arabia company for equipment and systems maintenance started with an initial cash investment of 50000 pounds.
The following data was on December 31, 2018:
Cash at bank | 46,000 |
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| Notes payable | 82,000 |
Receivables | 52,000 |
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| Payables | 5,000 |
Revenue | 80,000 |
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| Supplies expenses | 10,000 |
Rent | 12,000 |
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| Oil and gas expenses | 6,000 |
Advertising expense | 4,000 |
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| General expenses | 3,000 |
Equipments | 70,000 |
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| Wages and salaries expenses | 14,000 |
Al-Arabia company for equipment and systems maintenance | |||||
Income statement | |||||
for the year ended December 31, 2018 | |||||
Revenues | |||||
Account name | The amount | ||||
Expenses | |||||
Account name |
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Account name |
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Account name |
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Account name |
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Account name |
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Total expenses | |||||
Net profit |
Change in equity statement | |||||
for the year ended December 31, 2018 | |||||
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| Capital | Retained Earnings | Total |
Capital |
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Net profit |
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The balance at Dec 31,2018 |
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Statement of financial position | |||||
As at Dec 31,2018 | |||||
Assets (Resources) | |||||
Current assets |
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Account name |
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Account name |
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Total current assets |
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Noncurrent assets |
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Account name |
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Total noncurrent assets |
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Total assets | Equation | ||||
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Liabilities and Equity | |||||
Current liabilities |
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Account named |
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Account named |
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Non current liabilities |
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Account named |
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Total liabilities | Equation | ||||
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Equity | |||||
Account named |
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Account named |
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Total equity | Equation | ||||
Total liabilities and equity |
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| Equation |
Q2:
A) Briefly talk about whether the company's operation was successful or failed, using the possible financial analysis indicators.
b) Discuss the decision to distribute the profits made by the company.
C)Find the expected capital payback period.
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