STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR TO 31 DECEMBER 2014 2013 2014 GHS GHS Sales 160,000 200,000 Cost of goods sold (96,000) (114,000) Gross Profit 64,000 86,000 Operating expenses (30,000) (34,000) Debenture Interest (5,000) (5,000) Net profit before tax 29,000 47,000 Tax (9,000) (12,000) Net profit after tax 20,000 35,000 Dividend paid: Preference shares (2,000) (2,000) Ordinary shares (8,000) (10,000) (10,000) (12,000) CoDEUCC/Bachelor of Commerce 46 ANALYSIS OF STATEMENT OF SHAREHOLDERS EQUITY AND STATEMENT OF CASH FLOW UNIT 2 SESSION 2 Retained profit 10,000 23,000 STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2014 2013 2014 GHS GHS Non-current assets (@ net book value) 300,000 320,000 Current Assets: Inventories 15,000 20,000 Trade debtors 40,000 50,000 Cash and bank 3,000 1,000 58,000 71,000 Current Liabilities: Trade creditors (25,000) (35,000) Net current assets 33,000 36,000 333,000 356,000 Capital and reserves: Share capital (GHS1 ordinary shares) 200,000 200,000 Preference shares (GHS1 shares; 8%) 25,000 25,000 Retained earnings 58,000 81,000 283,000 306,000 Long-term Liabilities: 10% Debentures 50,000 50,000 333,000 356,000 Additional information: All sales and all purchases are on credit terms. 1. The opening inventory at 31 December 2012 was GHS20,000. 2. There were no accruals or prepayments at the end of either 2013 or 2014. 3. Assume that both the tax and the dividends had been paid before the end of the year. CoDEUCC/Bachelor of Commerce 47