ONLY PREPARE THE CONSOLIDATED STATEMENTS ONLY!
Fish Limited Fish Limited, Shark Limited and Whale Limited are fictitious companies. Any similarity to any company registered in the Caribbean or any company listed on a Stock Exchange in the Caribbean is entirely coincidental and unintentional. The persons and transactions in this project are fictitious. Any similarity to any person living or dead and to any transaction which has occurred or might occur in the future is entirely coincidental and unintentional. Fish Limited is incorporated as a public company under the laws of Jamaica and its shares are quoted on the Jamaica Stock Exchange. The initial public offering (IPO) was on October 27, 2017. The company is domiciled in Jamaica. The registered office of the company is located at 00 Gloucester Avenue, Montego Bay, Jamaica. Fish Limited operates a hotel in Montego Bay. Shark Limited is incorporated as a private company and is domiciled in Jamaica. The registered office of the company is 00 Main Street, Ocho Rios, Jamaica. Shark Limited operates restaurants in Ocho Rios (head office), Montego Bay (branch), and Negril (branch). Whale Limited is incorporated as a private company and is domiciled in Jamaica. The registered office of the company is 00 Norman Manley Boulevard, Negril, Jamaica. Whale Limited operates a hotel in Negril. The auditors Manchester and United are willing to continue in office. The auditors have completed their audit of all three companies and they issued an unqualified audit report on July 31, 2020. Fish Limited consolidated financial statements were approved and authorized for issue by the board of directors on October 30, 2020. Due to COVID-19 pandemic, the annual general meeting of Fish Limited was rescheduled from December 2020 to Wednesday, November 17, 2021 at 12:00 noon at the Montego Bay Convention Centre, Montego Bay, Jamaica. The notice for the annual general meeting was sent to the shareholders by the Company Secretary on July 1, 2021. Fish Limited acquired an eighty per cent (80%) holding in Shark Limited on January 1, 2015. At that time Shark Limited general reserves were $200,000 and retained profits were $3,520,000. Fish Limited acquired a thirty per cent (30%) holding in Whale a Limited on January 1, 2016. At that time Whale Limited retained profits were $3,800,000. A guest and a supplier filed lawsuits against Fish Limited in November 2019. The guest is claiming damages amounting to $400,000 arising out of an alleged accident in the lobby in which she sustained injuries to her back and neck. The company's lawyer, Miguel Williams wants to settle out of court for $200,000 and started negotiations with the plaintiff's lawyer. The supplier is claiming damages amounting to $300,000 for breach of contract. Miguel Williams is of the opinion that the supplier's claim will not succeed. On Thursday, February 3, 2020 Fish Limited Company Secretary received a letter from the liquidator of King Limited, indicating that the King Limited was placed into liquidation under the terms of a loan agreement by the loan creditors on December 16, 2019. Fish Limited accounts receivable balance includes an amount of $280,000 owed by King Limited. No allowance was made in the books for this amount. Fish Limited in December 2019 filed a lawsuit for $1,200,000 against a supplier for breach of contract. The company's lawyer, Miguel Williams is of the opinion that Fish Limited is likely to succeed (80% chance of success in the Court) when the case goes to trial. (A) The income tax rate for 2018 and 2019 is 25%, and the corporation tax rate for 2018 and 2019 is 33 1/3 %. (B) The allowance for bad debt is a specific allowance. (C) The authorized share capital of Fish Limited consist of 10,000,000 no par ordinary shares. The number of ordinary shares issued on December 31, 2019 was 8,000,000. Fish Limited issued 2,000,000 bonus ordinary shares out of general reserves on April 21, 2019 at a stated value of $1 per share. (D) Fish Limited Board of Directors voted on March 13, 2020 to increase the authorised share capital to 15,000,000. The new shares will rank pari passu with existing ordinary shares. (E) Fish Limited gross operating revenue (Sales) for 2019 includes $2,000,000 for goods sold to Shark Limited. Fish Limited mark-up on the goods sold to Shark Limited was 25%. Shark Limited cost of operating revenue includes the goods purchased from Fish Limited. Seventy five per cent (758) of the goods were sold by Shark Limited at the year end. (F) Transactions in foreign currencies have been converted at the rates of exchange ruling at the dates of those transactions. (G) Fish Limited short term investments on December 31, 2019 comprise: $900,000 fixed deposit that will mature in 60 days, and $300,000 fixed deposit that will mature in 6 months. (H) A donation of $100,000 was made to the Salvation Army by Fish Limited on May 1, 2019. The amount is already reflected in the accounts. (I) Inventories are stated by the companies at the lower of cost and net realizable. The first in first out method is used to value inventory. (J) Fish Limited investments in debt and equity securities on December 31, 2019: $'000 Originated Debt Government of Jamaica Securities 100 Available for Sale Government of Jamaica Securities 150 Quoted Securities 100 350 (K) Depreciation is calculated on property, plant and equipment using the straight line method of depreciation at rates estimated to write off the assets over their expected useful lives as follows: Furniture & fittings 10% Equipment 20% Land & buildings 5% (L) Fish Limited directors retiring by rotation pursuant to article 90 of the Articles of Association are Mr. Frank Rose, Miss Demi Jordan, and Miss Monique Sharpe who being (M) eligible offer themselves for re-election. Fish Limited operating income for 2019 includes dividend income (gross) from Shark Limited and Whale Limited, profit on disposal of equipment and interest income. Fish Limited dividend income from Shark limited and whale Limited were received net of income tax (25% was deducted). The gross amount is reflected in the Income Statement of Fish Limited. (N) In 2020 $25,000 of the long term receivable will become due and payable to Fish Limited. (0) In 2020 $1,000,000 of the 15% long term loan will become due and payable by Fish Limited. (P) Fees and Remuneration for 2019 Directors fees Directors remuneration Auditors remuneration Fish $'000 320 2,000 770 Shark $'000 250 2,000 620 Whale $'000 160 1,000 390 The fees and remuneration are already reflected in the Income Statement of each company. (Q) Inventories on December 31, 2019: o Fish $'000 532 228 760 Food Beverage Shark $'000 349 111 460 Whale $'000 48 56 (R) Account Receivables on December 31, 2019: Fish $'000 Trade receivables 1,881 Staff receivables 19 1,900 Less allowance for bad debts 20 1,880 Shark 000 1,960 40 2,000 60 1,940 Whale $'000 712 38 750 6 744 ==== ==== (S) The taxation charge reflected in each company's Income Statement for 2019: Fish Shark Whale $'000 $'000 $'000 Charge for the year 11,490 2,720 6,000 Under-provision 10 0 0 Investment income tax 300 0 0 Deferred taxation 200 80 400 12,000 2,800 6,400 ===== === (T) Property, plant and equipment Fish $'000 Shark $'000 Whale $'000 Cost Land & buildings 31,000 Furniture & fixtures 8,500 Equipment 4,100 Balance January 1, 2019 43,600 10,000 3,000 2,000 15,000 14,000 2,500 4,000 20,500 Accumulated Depreciation Land & buildings Furniture & fixtures Equipment Balance January 1, 2019 3,100 850 870 4,820 4,000 600 1,200 5,800 1,750 200 800 2,750 Depreciation Charge 2019 Land & buildings Furniture & fixtures Equipment 1,510 850 800 3,160 500 300 400 1,200 700 250 800 1,750 The depreciation charge for each company is already reflected in the Income Statement. During 2019 Fish Limited sold equipment costing $100,000, with accumulated depreciation of $60,000 for $50,000 cash. This transaction is already reflected in the accounts. (Y) The taxation charge for 2018: Charge for the year Under-provision Investment income tax Deferred taxation Fish $'000 9,521 20 300 0 9,841 Shark $'000 2,279 0 0 Whale $'000 5, 450 0 0 350 5,800 OOO! 2,279 (Z) Depreciation charge for 2018 Land & buildings Furniture & fixtures Equipment Fish $'000 1,550 850 820 3,220 Shark $'000 500 300 400 1,200 Whale $000 700 250 800 1,750 (AA) Staff Cost for 2018 Fish $'000 2,890 Shark $'000 3,130 Whale $'000 1,790 Salaries and wages Staff benefits Statutory contributions Other 180 322 88 320 78 70 29 Average Number of Employees Full time Part time Contractors their employees O O 18 40 N N 00 00 28 28 42 6 ON 00 4 Fish Limited December 31, 2019 Name of Director Number of Shares Held Number of Shares Held Indirectly (Chairman) President) 50,000 25,000 25,000 5,000 260, 500 2,000 Nil Nil 100 Nil Directors should insert their names in the space provided Ten Largest Shareholders Number of Shares Held Soft Pension Limited 720,000 Surprise Investments Limited 500,000 Debbie-Ann Wong 380, 200 Karen Mills 350,000 Deloris Fenton 350,000 Damian Cunningham 350,000 Rory Frankson 300,000 Peta-Gaye Brown 280,500 Dane Johnson 280,000 Monique Sharpe 260,500 Shareholdings of Senior Managers and Officers Number of Shares Held Courtney James (President) 25,000 Melissa Williams (Company Secretary) Nil Leighton Lindo (Vice President) 1,000 Keisha Scarlett (Vice President) 1,000 Income Statement for the year ended December 31, 2019 Fish $'000 98,000 25, 920 72,080 3,640 Shark $'000 67,600 32,400 35,200 400 Whale $'000 52,000 16,200 35,800 0 Gross operating revenue Less cost of operating revenue Gross profit Add other operating income Less Administrative Distribution costs Other operating expenses Operating profit Less finance cost Profit before taxation Less taxation Profit after taxation Less dividends Retained profits for the year Retained profits brought forward Retained profits carried forward 12,880 12,560 640 49, 640 600 49,040 12,000 37,040 4,000 33,040 8, 320 41, 360 13,600 13, 200 800 8,000 0 8,000 2,800 5, 200 1,200 4,000 3,520 7,520 11,800 11,600 400 12,000 0 12,000 6,400 5,600 800 4,800 10,960 15,760 The market price per share for Fish Limited on December 31, 2019 was $1.80 Balance Sheet as at December 31, 2019 Fish $'000 Shark $'000 Whale $'000 8,000 16,000 Assets Property, plant & equipment Long term loan to Whale Investment in Shark (at cost) Investment in Whale (at cost) Long term receivable Investment Inventories Accounts receivables Receivable from Shark Receivable from Whale Short term investments Cash and bank 35,580 400 4,600 2,800 50 350 760 1,880 372 248 1,200 8,000 56, 240 0 0 460 1,940 0 0 56 744 | OOO O1 0 400 10,800 0 800 17,600 8,000 2,000 41,360 200 1,800 200 7,520 80 400 0 15, 760 50 Equity and Liabilities Ordinary share capital General reserves Retained profits Deferred taxation Loan from Fish 15% long term loan Trade payables Payable to Fish Accruals Corporation tax payable 3,000 300 400 0 310 248 80 352 17,600 0 358 372 20 450 10,800 80 1,300 56,240 On December 31, 2019 Fish Limited acquired land and building in Central America by cheque equivalent to J$6,000,000. This transaction is not yet reflected in the accounts. On January 15, 2020 Fish Limited rented the entire land and building to 4 tenants to earn rental income. An assessment of goodwill on December 31, 2019 revealed an impairment of $24,000. Fish Limited Consolidated Income Statement For the year ended December 31, 2018 Gross operating revenue Cost of operating revenue Gross profit Other operating income Administrative expenses Distribution costs Other operating expenses Operating profit Finance costs Share of associate profit Profit before taxation Taxation Profit after taxation $'000 156, 370 ( 56,290) 100,080 2,840 ( 23, 830) ( 23,700) (1,280) 54, 110 ( 7, 200) 2,550 49,460 (13,860) 35,600 Attributable to; Equity holders of the Parent Non-Controlling interest 34,600 1,000 35,600 ====== Earnings per share $5.77 The market price per share for Fish Limited on December 31, 2018 was $0.95. The IPO market price for Fish Limited was $1.00. Fish Limited Consolidated Statement of Changes in Equity For the year ended December 31, 2018 Ordinary General Retained Non Total Share Reserve Profits Contr. Capital Inter. $'000 $'000 $'000 $'000 $'000 Balance January 1, 2018 6,000 4,000 1,368 344 11,712 Profit after taxation 34,600 1,000 35,600 Distribution to non- Controlling interest (240) (240) Dividends (25,500) (25 00) Balance December 31, 2018 6,000 4,000 10,468 1,104 21,572 ===== ====== Non Contr. Inter. = Non-controlling interest The number of ordinary shares in issue on December 31, 2018 was 6,000,000. Interest in Associate on December 31, 2018 $'000 Cost of investment 2,800 Share of post acquisition profits 2,148 4,948 Loan to associate 400 5,348 Fish Limited investments on December 31, 2018 $'000 250 Originated Debt Government of Jamaica Securities Available for Sale Quoted Securities 100 350 No interest is charged by Fish Limited on the loan to Whale Limited and no fixed date is set for repayment of the loan. Fish Limited 15% long term loan is secured against the property, plant and equipment. Fish Limited Consolidated Statement of Changes in Equity For the year ended December 31, 2018 Ordinary General Retained Non Total Share Reserve Profits Contr. Capital Inter. $'000 $'000 $'000 $'000 $'000 Balance January 1, 2018 6,000 4,000 1,368 344 11,712 Profit after taxation 34,600 1,000 35,600 Distribution to non- Controlling interest (240) (240) Dividends (25,500) (25 00) Balance December 31, 2018 6,000 4,000 10,468 1,104 21,572 ===== ====== Non Contr. Inter. = Non-controlling interest The number of ordinary shares in issue on December 31, 2018 was 6,000,000. Interest in Associate on December 31, 2018 $'000 Cost of investment 2,800 Share of post acquisition profits 2,148 4,948 Loan to associate 400 5,348 Fish Limited investments on December 31, 2018 $'000 250 Originated Debt Government of Jamaica Securities Available for Sale Quoted Securities 100 350 No interest is charged by Fish Limited on the loan to Whale Limited and no fixed date is set for repayment of the loan. Fish Limited 15% long term loan is secured against the property, plant and equipment. Fish Limited Consolidated Balance Sheet as at December 31, 2018 $'000 Assets Non-Current Assets Goodwill 184 Property, plant and equipment 47,980 Interest in associate 5, 348 Long term receivable 50 Investment 350 53, 912 Current Assets Inventories 780 Accounts receivables 12,096 Current portion of long term receivable 25 Cash and bank 96 12,997 ON Total assets 66,909 Equity and Liabilities Shareholders' Equity Ordinary share capital General reserves Retained profits Ordinary shareholders interest Non-Controlling interest 6,000 4,000 10,468 20, 468 1,104 21,572 Non-Current Liabilities Deferred taxation Long term loan 0 35,000 35,000 Current Liabilities Trade payables Accruals Current portion of long term loan Corporation tax payable 8, 323 10 1,000 1,004 10,337 Total liabilities 45,337 Total equity and liabilities 66,909 Fish Limited assets, equity and liabilities as at December 31, 2018 $'000 Assets Property, plant & equipment Long term loan to Whale Investment in Whale (at cost) Investment in Shark (at cost) Long term receivable Investment Inventories Accounts receivables Cash and bank 38,780 400 2,800 4,600 75 350 480 7,257 10 54,752 Equity and Liabilities Ordinary share capital General reserves Retained profits 15% long term loan Trade payables Accruals Corporation tax payable 6,000 4,000 8,320 36,000 160 70 202 54,752 Additional information: Current portion of long term receivable $25,000. Current portion of 15% long term loan $1,000,000. Fish Limited Consolidated Statement of Cash Flows For the year ended December 31, 2018 $'000 Cash flows from operating activities Profit before taxation Investment income Interest expense Adjustment for non-cash items Depreciation Share of associate profit 49,460 ( 2,830) 7, 200 53,830 4, 420 ( 2,550) (Increase) / decrease in operating assets Inventories Trade receivable 171 (2,118) 112 20 Increase/ (decrease) in operating liabilities Trade payables Accruals Cash generated from operations Corporation tax paid Net cash provided by operating activities 53,885 (11,116) 42, 769 Cash flows from investing activities Receipt from long term receivable 25 Investment income 2,530 Dividends received from associate 240 Net cash provided by investing activities 2,795 Cash flows from financing activities Interest paid (7, 200) Loan payment (1,000) Dividends paid (25,500) Minority interest in dividends paid by subsidiary ( 240) Net cash used by financing activities (33, 940) Increase in cash and cash equivalents Opening cash and cash equivalents closing cash and cash equivalents 11,624 (11,528) 96 == Represented by: Cash and bank 9 5 96 1. Company Statement of Financial Position 2. Consolidated Income Statement 3. Consolidated Statement of Changes in Equity 4. Consolidated Statement of Financial Position b. Prepare Fish Limited annual report for the year ended December 31, 2019. (Group Assignment 4 persons group) Fish Limited Fish Limited, Shark Limited and Whale Limited are fictitious companies. Any similarity to any company registered in the Caribbean or any company listed on a Stock Exchange in the Caribbean is entirely coincidental and unintentional. The persons and transactions in this project are fictitious. Any similarity to any person living or dead and to any transaction which has occurred or might occur in the future is entirely coincidental and unintentional. Fish Limited is incorporated as a public company under the laws of Jamaica and its shares are quoted on the Jamaica Stock Exchange. The initial public offering (IPO) was on October 27, 2017. The company is domiciled in Jamaica. The registered office of the company is located at 00 Gloucester Avenue, Montego Bay, Jamaica. Fish Limited operates a hotel in Montego Bay. Shark Limited is incorporated as a private company and is domiciled in Jamaica. The registered office of the company is 00 Main Street, Ocho Rios, Jamaica. Shark Limited operates restaurants in Ocho Rios (head office), Montego Bay (branch), and Negril (branch). Whale Limited is incorporated as a private company and is domiciled in Jamaica. The registered office of the company is 00 Norman Manley Boulevard, Negril, Jamaica. Whale Limited operates a hotel in Negril. The auditors Manchester and United are willing to continue in office. The auditors have completed their audit of all three companies and they issued an unqualified audit report on July 31, 2020. Fish Limited consolidated financial statements were approved and authorized for issue by the board of directors on October 30, 2020. Due to COVID-19 pandemic, the annual general meeting of Fish Limited was rescheduled from December 2020 to Wednesday, November 17, 2021 at 12:00 noon at the Montego Bay Convention Centre, Montego Bay, Jamaica. The notice for the annual general meeting was sent to the shareholders by the Company Secretary on July 1, 2021. Fish Limited acquired an eighty per cent (80%) holding in Shark Limited on January 1, 2015. At that time Shark Limited general reserves were $200,000 and retained profits were $3,520,000. Fish Limited acquired a thirty per cent (30%) holding in Whale a Limited on January 1, 2016. At that time Whale Limited retained profits were $3,800,000. A guest and a supplier filed lawsuits against Fish Limited in November 2019. The guest is claiming damages amounting to $400,000 arising out of an alleged accident in the lobby in which she sustained injuries to her back and neck. The company's lawyer, Miguel Williams wants to settle out of court for $200,000 and started negotiations with the plaintiff's lawyer. The supplier is claiming damages amounting to $300,000 for breach of contract. Miguel Williams is of the opinion that the supplier's claim will not succeed. On Thursday, February 3, 2020 Fish Limited Company Secretary received a letter from the liquidator of King Limited, indicating that the King Limited was placed into liquidation under the terms of a loan agreement by the loan creditors on December 16, 2019. Fish Limited accounts receivable balance includes an amount of $280,000 owed by King Limited. No allowance was made in the books for this amount. Fish Limited in December 2019 filed a lawsuit for $1,200,000 against a supplier for breach of contract. The company's lawyer, Miguel Williams is of the opinion that Fish Limited is likely to succeed (80% chance of success in the Court) when the case goes to trial. (A) The income tax rate for 2018 and 2019 is 25%, and the corporation tax rate for 2018 and 2019 is 33 1/3 %. (B) The allowance for bad debt is a specific allowance. (C) The authorized share capital of Fish Limited consist of 10,000,000 no par ordinary shares. The number of ordinary shares issued on December 31, 2019 was 8,000,000. Fish Limited issued 2,000,000 bonus ordinary shares out of general reserves on April 21, 2019 at a stated value of $1 per share. (D) Fish Limited Board of Directors voted on March 13, 2020 to increase the authorised share capital to 15,000,000. The new shares will rank pari passu with existing ordinary shares. (E) Fish Limited gross operating revenue (Sales) for 2019 includes $2,000,000 for goods sold to Shark Limited. Fish Limited mark-up on the goods sold to Shark Limited was 25%. Shark Limited cost of operating revenue includes the goods purchased from Fish Limited. Seventy five per cent (758) of the goods were sold by Shark Limited at the year end. (F) Transactions in foreign currencies have been converted at the rates of exchange ruling at the dates of those transactions. (G) Fish Limited short term investments on December 31, 2019 comprise: $900,000 fixed deposit that will mature in 60 days, and $300,000 fixed deposit that will mature in 6 months. (H) A donation of $100,000 was made to the Salvation Army by Fish Limited on May 1, 2019. The amount is already reflected in the accounts. (I) Inventories are stated by the companies at the lower of cost and net realizable. The first in first out method is used to value inventory. (J) Fish Limited investments in debt and equity securities on December 31, 2019: $'000 Originated Debt Government of Jamaica Securities 100 Available for Sale Government of Jamaica Securities 150 Quoted Securities 100 350 (K) Depreciation is calculated on property, plant and equipment using the straight line method of depreciation at rates estimated to write off the assets over their expected useful lives as follows: Furniture & fittings 10% Equipment 20% Land & buildings 5% (L) Fish Limited directors retiring by rotation pursuant to article 90 of the Articles of Association are Mr. Frank Rose, Miss Demi Jordan, and Miss Monique Sharpe who being (M) eligible offer themselves for re-election. Fish Limited operating income for 2019 includes dividend income (gross) from Shark Limited and Whale Limited, profit on disposal of equipment and interest income. Fish Limited dividend income from Shark limited and whale Limited were received net of income tax (25% was deducted). The gross amount is reflected in the Income Statement of Fish Limited. (N) In 2020 $25,000 of the long term receivable will become due and payable to Fish Limited. (0) In 2020 $1,000,000 of the 15% long term loan will become due and payable by Fish Limited. (P) Fees and Remuneration for 2019 Directors fees Directors remuneration Auditors remuneration Fish $'000 320 2,000 770 Shark $'000 250 2,000 620 Whale $'000 160 1,000 390 The fees and remuneration are already reflected in the Income Statement of each company. (Q) Inventories on December 31, 2019: o Fish $'000 532 228 760 Food Beverage Shark $'000 349 111 460 Whale $'000 48 56 (R) Account Receivables on December 31, 2019: Fish $'000 Trade receivables 1,881 Staff receivables 19 1,900 Less allowance for bad debts 20 1,880 Shark 000 1,960 40 2,000 60 1,940 Whale $'000 712 38 750 6 744 ==== ==== (S) The taxation charge reflected in each company's Income Statement for 2019: Fish Shark Whale $'000 $'000 $'000 Charge for the year 11,490 2,720 6,000 Under-provision 10 0 0 Investment income tax 300 0 0 Deferred taxation 200 80 400 12,000 2,800 6,400 ===== === (T) Property, plant and equipment Fish $'000 Shark $'000 Whale $'000 Cost Land & buildings 31,000 Furniture & fixtures 8,500 Equipment 4,100 Balance January 1, 2019 43,600 10,000 3,000 2,000 15,000 14,000 2,500 4,000 20,500 Accumulated Depreciation Land & buildings Furniture & fixtures Equipment Balance January 1, 2019 3,100 850 870 4,820 4,000 600 1,200 5,800 1,750 200 800 2,750 Depreciation Charge 2019 Land & buildings Furniture & fixtures Equipment 1,510 850 800 3,160 500 300 400 1,200 700 250 800 1,750 The depreciation charge for each company is already reflected in the Income Statement. During 2019 Fish Limited sold equipment costing $100,000, with accumulated depreciation of $60,000 for $50,000 cash. This transaction is already reflected in the accounts. (Y) The taxation charge for 2018: Charge for the year Under-provision Investment income tax Deferred taxation Fish $'000 9,521 20 300 0 9,841 Shark $'000 2,279 0 0 Whale $'000 5, 450 0 0 350 5,800 OOO! 2,279 (Z) Depreciation charge for 2018 Land & buildings Furniture & fixtures Equipment Fish $'000 1,550 850 820 3,220 Shark $'000 500 300 400 1,200 Whale $000 700 250 800 1,750 (AA) Staff Cost for 2018 Fish $'000 2,890 Shark $'000 3,130 Whale $'000 1,790 Salaries and wages Staff benefits Statutory contributions Other 180 322 88 320 78 70 29 Average Number of Employees Full time Part time Contractors their employees O O 18 40 N N 00 00 28 28 42 6 ON 00 4 Fish Limited December 31, 2019 Name of Director Number of Shares Held Number of Shares Held Indirectly (Chairman) President) 50,000 25,000 25,000 5,000 260, 500 2,000 Nil Nil 100 Nil Directors should insert their names in the space provided Ten Largest Shareholders Number of Shares Held Soft Pension Limited 720,000 Surprise Investments Limited 500,000 Debbie-Ann Wong 380, 200 Karen Mills 350,000 Deloris Fenton 350,000 Damian Cunningham 350,000 Rory Frankson 300,000 Peta-Gaye Brown 280,500 Dane Johnson 280,000 Monique Sharpe 260,500 Shareholdings of Senior Managers and Officers Number of Shares Held Courtney James (President) 25,000 Melissa Williams (Company Secretary) Nil Leighton Lindo (Vice President) 1,000 Keisha Scarlett (Vice President) 1,000 Income Statement for the year ended December 31, 2019 Fish $'000 98,000 25, 920 72,080 3,640 Shark $'000 67,600 32,400 35,200 400 Whale $'000 52,000 16,200 35,800 0 Gross operating revenue Less cost of operating revenue Gross profit Add other operating income Less Administrative Distribution costs Other operating expenses Operating profit Less finance cost Profit before taxation Less taxation Profit after taxation Less dividends Retained profits for the year Retained profits brought forward Retained profits carried forward 12,880 12,560 640 49, 640 600 49,040 12,000 37,040 4,000 33,040 8, 320 41, 360 13,600 13, 200 800 8,000 0 8,000 2,800 5, 200 1,200 4,000 3,520 7,520 11,800 11,600 400 12,000 0 12,000 6,400 5,600 800 4,800 10,960 15,760 The market price per share for Fish Limited on December 31, 2019 was $1.80 Balance Sheet as at December 31, 2019 Fish $'000 Shark $'000 Whale $'000 8,000 16,000 Assets Property, plant & equipment Long term loan to Whale Investment in Shark (at cost) Investment in Whale (at cost) Long term receivable Investment Inventories Accounts receivables Receivable from Shark Receivable from Whale Short term investments Cash and bank 35,580 400 4,600 2,800 50 350 760 1,880 372 248 1,200 8,000 56, 240 0 0 460 1,940 0 0 56 744 | OOO O1 0 400 10,800 0 800 17,600 8,000 2,000 41,360 200 1,800 200 7,520 80 400 0 15, 760 50 Equity and Liabilities Ordinary share capital General reserves Retained profits Deferred taxation Loan from Fish 15% long term loan Trade payables Payable to Fish Accruals Corporation tax payable 3,000 300 400 0 310 248 80 352 17,600 0 358 372 20 450 10,800 80 1,300 56,240 On December 31, 2019 Fish Limited acquired land and building in Central America by cheque equivalent to J$6,000,000. This transaction is not yet reflected in the accounts. On January 15, 2020 Fish Limited rented the entire land and building to 4 tenants to earn rental income. An assessment of goodwill on December 31, 2019 revealed an impairment of $24,000. Fish Limited Consolidated Income Statement For the year ended December 31, 2018 Gross operating revenue Cost of operating revenue Gross profit Other operating income Administrative expenses Distribution costs Other operating expenses Operating profit Finance costs Share of associate profit Profit before taxation Taxation Profit after taxation $'000 156, 370 ( 56,290) 100,080 2,840 ( 23, 830) ( 23,700) (1,280) 54, 110 ( 7, 200) 2,550 49,460 (13,860) 35,600 Attributable to; Equity holders of the Parent Non-Controlling interest 34,600 1,000 35,600 ====== Earnings per share $5.77 The market price per share for Fish Limited on December 31, 2018 was $0.95. The IPO market price for Fish Limited was $1.00. Fish Limited Consolidated Statement of Changes in Equity For the year ended December 31, 2018 Ordinary General Retained Non Total Share Reserve Profits Contr. Capital Inter. $'000 $'000 $'000 $'000 $'000 Balance January 1, 2018 6,000 4,000 1,368 344 11,712 Profit after taxation 34,600 1,000 35,600 Distribution to non- Controlling interest (240) (240) Dividends (25,500) (25 00) Balance December 31, 2018 6,000 4,000 10,468 1,104 21,572 ===== ====== Non Contr. Inter. = Non-controlling interest The number of ordinary shares in issue on December 31, 2018 was 6,000,000. Interest in Associate on December 31, 2018 $'000 Cost of investment 2,800 Share of post acquisition profits 2,148 4,948 Loan to associate 400 5,348 Fish Limited investments on December 31, 2018 $'000 250 Originated Debt Government of Jamaica Securities Available for Sale Quoted Securities 100 350 No interest is charged by Fish Limited on the loan to Whale Limited and no fixed date is set for repayment of the loan. Fish Limited 15% long term loan is secured against the property, plant and equipment. Fish Limited Consolidated Statement of Changes in Equity For the year ended December 31, 2018 Ordinary General Retained Non Total Share Reserve Profits Contr. Capital Inter. $'000 $'000 $'000 $'000 $'000 Balance January 1, 2018 6,000 4,000 1,368 344 11,712 Profit after taxation 34,600 1,000 35,600 Distribution to non- Controlling interest (240) (240) Dividends (25,500) (25 00) Balance December 31, 2018 6,000 4,000 10,468 1,104 21,572 ===== ====== Non Contr. Inter. = Non-controlling interest The number of ordinary shares in issue on December 31, 2018 was 6,000,000. Interest in Associate on December 31, 2018 $'000 Cost of investment 2,800 Share of post acquisition profits 2,148 4,948 Loan to associate 400 5,348 Fish Limited investments on December 31, 2018 $'000 250 Originated Debt Government of Jamaica Securities Available for Sale Quoted Securities 100 350 No interest is charged by Fish Limited on the loan to Whale Limited and no fixed date is set for repayment of the loan. Fish Limited 15% long term loan is secured against the property, plant and equipment. Fish Limited Consolidated Balance Sheet as at December 31, 2018 $'000 Assets Non-Current Assets Goodwill 184 Property, plant and equipment 47,980 Interest in associate 5, 348 Long term receivable 50 Investment 350 53, 912 Current Assets Inventories 780 Accounts receivables 12,096 Current portion of long term receivable 25 Cash and bank 96 12,997 ON Total assets 66,909 Equity and Liabilities Shareholders' Equity Ordinary share capital General reserves Retained profits Ordinary shareholders interest Non-Controlling interest 6,000 4,000 10,468 20, 468 1,104 21,572 Non-Current Liabilities Deferred taxation Long term loan 0 35,000 35,000 Current Liabilities Trade payables Accruals Current portion of long term loan Corporation tax payable 8, 323 10 1,000 1,004 10,337 Total liabilities 45,337 Total equity and liabilities 66,909 Fish Limited assets, equity and liabilities as at December 31, 2018 $'000 Assets Property, plant & equipment Long term loan to Whale Investment in Whale (at cost) Investment in Shark (at cost) Long term receivable Investment Inventories Accounts receivables Cash and bank 38,780 400 2,800 4,600 75 350 480 7,257 10 54,752 Equity and Liabilities Ordinary share capital General reserves Retained profits 15% long term loan Trade payables Accruals Corporation tax payable 6,000 4,000 8,320 36,000 160 70 202 54,752 Additional information: Current portion of long term receivable $25,000. Current portion of 15% long term loan $1,000,000. Fish Limited Consolidated Statement of Cash Flows For the year ended December 31, 2018 $'000 Cash flows from operating activities Profit before taxation Investment income Interest expense Adjustment for non-cash items Depreciation Share of associate profit 49,460 ( 2,830) 7, 200 53,830 4, 420 ( 2,550) (Increase) / decrease in operating assets Inventories Trade receivable 171 (2,118) 112 20 Increase/ (decrease) in operating liabilities Trade payables Accruals Cash generated from operations Corporation tax paid Net cash provided by operating activities 53,885 (11,116) 42, 769 Cash flows from investing activities Receipt from long term receivable 25 Investment income 2,530 Dividends received from associate 240 Net cash provided by investing activities 2,795 Cash flows from financing activities Interest paid (7, 200) Loan payment (1,000) Dividends paid (25,500) Minority interest in dividends paid by subsidiary ( 240) Net cash used by financing activities (33, 940) Increase in cash and cash equivalents Opening cash and cash equivalents closing cash and cash equivalents 11,624 (11,528) 96 == Represented by: Cash and bank 9 5 96 1. Company Statement of Financial Position 2. Consolidated Income Statement 3. Consolidated Statement of Changes in Equity 4. Consolidated Statement of Financial Position b. Prepare Fish Limited annual report for the year ended December 31, 2019. (Group Assignment 4 persons group)
