*Only enter your response in the blue cells. This is the only area that will be graded. a) Statement of Retained Earnings ( 6 marks) The information below relates to Cycle Ltd., a Canadian private company with an effective tax rate of 30%. Required: Prepare the Statement of Retained Earnings (in good form) for the year ended December 31, 2023. b) Statement of Financial Position (Balance Sheet) (17 marks) Century Ltd. has the following information available for their December 31. 2023 year end: The following additional information is provided: 1. Cash includes a bank overdraft of $2,500 has been deducted. There is no legal right of offset for this overdraft. 2. The net accounts receivable balance includes: (a) accounts receivable-debit balances $60,000; (b) allowance for expected credit losses (AFDA) $3,800. 3. Inventory does not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods. The following additional information is provided: 1. Cash includes a bank overdraft of $2,500 has been deducted. There is no legal right of offset for this overdraft. 2. The net accounts receivable balance includes: (a) accounts receivable-debit balances $60,000; (b) allowance for expected credit losses (AFDA) $3,800. 3. Inventory does not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods. 4. Investments include investments in common shares held for short term trading with a fair value of $19,000, long term investment in bonds of $48,300, and franchises of $9.000. 5. Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000 and included in this line item. Required: Prepare the Asseis section of the Classified Statement of Financial Position (in good form) at December 31.2023. C) Statement of Cash Flows (7 marks) See the financial information for Allo Inc, below: Required: Given the Statement of Cash Flow and ratios calculated above, answer the following: 1. Discuss Allo's financial results and their financial flexibility at the end of 2023 , (5 marks) Cash debt coverage ratio Net provided by operating activities/ave current liabilities Required: Given the Statement of Cash Flow and ratios calculated above, answer the following: 1. Discuss Allo's financial results and their financial flexibility at the end of 2023. (5 marks) 2. Given Allo's financial results what would you recommend for 2024. (2 marks)
