Question Three

As a financial analyst of mambo Yote Company he following data is available in your financial analysis (unless otherwise indicated all data are as at 31 December 2015)

Retained earnings December 31 2014	Sh. 98000
Gross Profit Margin	25%
Non-Current Assets	Sh. 280,000
Average Sale Period	45 Days
Average Collection Period	18 Days
Shareholders Equity To Total Debt	4 to 1
Sales All On Credit	Sh. 920,000
Corporate Tax Rate	30%
Operating Expenses	Sh. 180000 (Excluding Taxes and Cost of Goods Sold)

Additional information

1. Common stock sh. 15 par value, 10,000 shares issued and outstanding at sh. 21 per share.
2. No cash dividends were paid in 2014 or 2015.
3. Assume a 360 day year
4. Current assets consist of cash, accounts receivables and inventories.

Required

1. Construct the statement of income for the year ended 31^st December 2015

(10 Marks)

2. Construct the statement of financial position as at 31^st December 2015 (15 Marks)

(Sow all workings)