Q$7$

Francis Chan and his friends founded Iridium Co$.$ Ltd$.$ that speceiglizes in making batteries for electric vehicles on $31$ Dec, $2020.$ Shareholders

contributed $$1,200m$ as equity capital. All shareholders have paid in cash.

The financial year for Iridium for $2021$ is from $1$ Jan $2021$ to $31$ Dec $2021.$

On $1$ Jan $2021,$ the following activities took place:

Iridium borrowed $$200m$ at annual interest rate of $8\%.$ The company will pay off the whole principal of $$200m$ at the end of year $5.$

Iridium bought machines A and B$.$ Machine A costs $$300m$ and Machine B costs $$600m,$ all paid in cash. Both have useful life of $10$ years.

The company bought raw materials to make the batteries that cost $$600m$ but $$100m$ has not been paid to the suppliers.

For the financial year $2021,$ the revenue recorded for Iridium was $$1200m.$

Expenses related to wages and utilities are $$250m$ and $$80m$ respectively. As of Dec $31,2021,$$$20m$ of wages are outstanding $($i$.$e$.,$ not paid in

cash yet$)$ but utilities are all paid in cash.

On Dec $312021,$

$$200m$ has not been collected in cash from its customers.

Of the raw materials that were bought on $1$ Jan $2021,$$$200m$ was not used for the production of batteries in the $2021$ financial year. The rest

was all used in the form of expenses to produce the batteries.

Iridium decided to sell Machine A and buy a better one. Iridium sold Machine A for $$270m.$

Cash dividend of $$100m$ was paid to shareholders.

Iridium bought Machine C with useful life of ten years for $$280m,$ all paid in cash. Depreciation expense for Machine C will begin on $1$ Jan

Tax rate is $20\%.$

Calculate the net income for $2021.$

Q$8$

As of Dec $31,2021,$ calculate the ending cash balance.

Q$9$

Calculate the total stockholders' equity as of Dec $31,2021.$

Q$10$

Draw up the balance sheet of Iridium as of Dec $31,2021.$