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Skyline Ltd started its operations on 1 January 2015. Below are the financial records for the first five years of trading: Year Ended 31 December
Skyline Ltd started its operations on 1 January 2015. Below are the financial records for the first five years of trading:
Year Ended 31 December | Trading Profit (Loss) £ | Profit (Loss) on Non-Current Assets £ | Upward Revaluation of Non-Current Assets £ |
2015 | (15,000) | 0 | 2,000 |
2016 | 10,000 | 1,000 | 3,000 |
2017 | 20,000 | 4,000 | 5,000 |
2018 | 25,000 | (3,000) | 0 |
2019 | 30,000 | 2,000 | 4,000 |
Requirements:
- Calculate the total net profit for each year, considering trading profit, profit (loss) on non-current assets, and upward revaluation of non-current assets.
- Assuming Skyline Ltd paid out the maximum legal dividend each year, calculate the dividend for each year.
- Prepare a summarized income statement for the year ended 31 December 2019.
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