Question
Question 1 (Total: 25 marks) The income statements and statements of financial position for Kayu Bangku Berhad for 2019 and 2020 are shown below. KAYU
Question 1 (Total: 25 marks)
The income statements and statements of financial position for Kayu Bangku Berhad for 2019 and 2020 are shown below.
KAYU BANGKU BERHAD
INCOME STATEMENT FOR THE YEAR ENDED 31 AUGUST 2019 AND 2020
| 2020 | 2019 |
| RM | RM |
Revenue | 2,983,620 | 2,762,444 |
Cost of sales | 1,828,362 | 1,715,478 |
Gross profit | 1,155,258 | 1,046,966 |
Administrative expenses | 446,600 | 458,290 |
Selling and distribution costs | 146,920 | 136,662 |
Operating profit | 561,738 | 452,014 |
Interest payable | - | 3,938 |
Interest receivable | 1,862 | - |
Profit before taxation | 563,600 | 448,076 |
Tax | 159,500 | 136,650 |
Profit after taxation | 404,100 | 311,426 |
|
|
|
KAYU BANGKU BERHAD
STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2019 AND 2020
| 2020 | 2019 | ||
ASSETS | RM | RM | RM | RM |
Non-current assets |
| 2,021,400 |
| 1,863,092 |
Current assets |
|
|
|
|
Inventory | 140,257 |
| 128,677 |
|
Trade receivables | 367,844 |
| 365,900 |
|
Cash | 157,250 |
| - |
|
|
| 665,351 |
| 494,577 |
|
| 2,686,751 |
| 2,357,669 |
EQUITY AND LIABILITIES |
|
|
|
|
Equity |
|
|
|
|
Share capital |
| 500,000 |
| 500,000 |
Retained earnings |
| 1,861,349 |
| 1,457,249 |
|
| 2,361,349 |
| 1,957,249 |
|
|
|
|
|
Non-current liabilities |
| - |
| 93,300 |
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade payables | 165,902 |
| 170,470 |
|
Tax payable | 159,500 |
| 136,650 |
|
|
| 325,402 |
| 307,120 |
|
| 2,686,751 |
| 2,357,669 |
You are required:
a) to present a horizontal analysis of the income statement and statement of financial position. (5 marks)
b) to write a brief report commenting on the income statement and statement of financial position of the business over the two (2) years. Use computations from part (a) to illustrate. (14 marks)
c) to name two (2) interest groups that will be interested in the accounting information of Kayu Bangku Berhad and discuss the reasons for their interest and the aspects which might be particularly useful to them. (6 marks)
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