Q3: Accounting Policy choice Problem 16.1 (Trotman, Carson & Gibbins, 2016) DEF Limited Balance sheet as at 30 June Current assets Cash Accounts receivable Allowance for doubtful debts Inventory 2016 2015 40 000 650 000 (50 000) 700 000 1 340 000 60 000 300 000 290 000 600 000 Noncurrent assets Equipment Accumulated depreciation Capitalised borrowing costs 1 800 000 1 100 000 (650 000 (100 200 000 1 450 000 0 00 2 790 000 1 600 000 Total assets Current liabilities Accounts payable Tax payable 670 000 60 000 730 000 556 000 44 000 600 000 Noncurrent liabilities Loan Total liabilities Net assets 580 000 1 310 000 1 480 000 600 000 1 200 000 400 000 OR HT Shareholders' equity Share capital Retained profits 1 150 000 330 000 1 480 000 250 000 150 000 400 000 Additional information: 2016 2015 Sales (all on credit) Net profit after tax EBIT Tax expense 1000 000640 000 200 000128 000 290 000 197 000 32 000 41 000 Note: No equipment was sold during the year