Question 1: [5 marks] Presented below is an income statement for Naser Company for the year ended December 31, 2020. Naser Company Income Statement For the Year Ended December 31, 2021 Net sales $750,000 Costs and expenses: Cost of goods sold 440,000 Selling, general, and administrative expenses 70,000 Other Income & Expenses 15,000 Income before income taxes 225,000 Additional information: 1. "Selling, general, and administrative expenses" included a charge of $5,000 for loss on sale of furniture. 2. "Other Income & Expenses " consisted of the following items, all before tax: interest expense $6,000, a discontinued operations loss of $18,000, and rent revenues $39,000 3. Tax rate 15% 4. Naser had 100,000 ordinary shares outstanding during 2021. Instructions Prepare a corrected income statement, including the appropriate per share disclosures. Then answer the following questions. Answer # Question Income from operations for 2021, is: 2 Income before income tax for 2021, is: 3 Income tax for 2021, is: 4 Income from continuing operations for 2021, is: 5 Net income for 2021, is: Naser Company Income Statement For the Year Ended December 31, 2021 # Question 2: 15 marks] Fill in the blanks below with the Qualitative Characteristics that best completes the sentence. Sentence Qualitative Characteristics 1 Because the company's income is low this year, a switch from accelerated depreciation to straight-line depreciation is made this year 2 Presentation of timely information with predictive and feedback value 3 Presentation of error-free information. 4 Application of the same accounting principles as in the preceding year 5 Information that helps users confirm or correct prior expectations _15 marks] Question 3: Presented below is the income statement of Amman Inc. for 2021: Sales $380,000 Cost of goods sold 225,000 Gross profit $155,000 Operating expenses 85,000 Income before income taxes 70,000 Income taxes 28,000 Net income $ 42,000 Notes: Operating expenses includes depreciation expense for the year for $16,700 Income taxes amount include $ 6000 related to financing activities. The company does not include any interest or dividend cash flows in the operating section of the statement of cash flows. In addition, the following information related balances of current assets and current liabilities shown in statement of financial position as follows: 31/12/2020 31/12/2021 Cash 12000 24000 Account receivable 15000 30000 20000 25000 Prepaid Insurance. Inventories 29400 10000 Accounts payable 20000 33000 Instructions Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows using the indirect method. Answer Amman Inc. Statement of Cash Flows (Indirect Method) Question 4: [5 marks] The following account information for Safari Corporation, prepare a statement of financial position in report form for the company as of December 31, 2021. All accounts have normal balances. (Net Income JD 100800) Equipment JD 50,000 Interest Expense 2,400 Interest Payable 1,000 long-term Notes Receivable 12,500 Retained Earnings 161,100 Dividends 50,400 Land 140,000 Inventory 105,000 Bonds Payable 154,000 Financial Assets measured at FV through P&L 4,500 Notes Payable (due in 6 months) 25,500 Share Capital-Ordinary 49,500 Accumulated Depreciation - Equip. 10,000 Prepaid Advertising 3,600 Buildings 90,500 Supplies 2,500 Treasury shares 1,000 Financial Assets measured at FV through OCI 4,500 Taxes Payable 3,000 Utilities Expense 1,320 restricted cash (petty cash) 400 Advertising Expense 1,560 Salaries and Wages Expense 53,040 Salaries and Wages Payable 15,000 Accumulated Dep. - Buildings 20,000 Cash 45,000 Depreciation Expense 8,000 Land Held for Investment 30,000 Answer # Question 1 Total Non-Current Assets that will be reported at 31/12/2021 statement of financial position, is: 2 Total Current Liabilities that will be reported at 31/12/2021 statement of financial position, is: 3 Total Equity that will be reported at 31/12/2021 statement of financial position, is: 4 Total Current Assets that will be reported at 31/12/2021 statement of financial position, is: 5 Amount of Property, Plant, and Equipment to be reported at 31/12/2021 statement of financial position, is: Safari Corporation statement of financial position as of December 31, 2021