Question
The following data come from summarized financial statements of ABC Corporation for two recent years: 2011 2010 Revenues 200,000 150,000 (-) Cost of goods sold
The following data come from summarized financial statements of ABC Corporation for two recent years:
2011 | 2010 | |
Revenues | 200,000 | 150,000 |
(-) Cost of goods sold | 50,000 | 60,000 |
(-) Other expenses | 30,000 | 105,000 |
The income tax-rate is 20 %.
In addition, consider the following facts:
- The share capital of the ABC Corporation at the year ended at 31 December 2009 was 5,000.
- The retained earnings of the ABC Corporation at the year ended at 31 December 2009 were 3,000.
- Reserves of the ABC Corporation at the year ended at 31 December 2009 were 50,000
- During 2010 ABC Corporation declared and paid a dividend of 3,000.
- The share capital of the ABC Corporation increased by 5,000 in 2011.
On the basis of the above information answer Questions 21A and 21B
A.Firms equity at the year ended at 31 December 2010 is:
- 40,000
- 33,000
- 55,000
- 31,000
- 43,000
B. Assuming that the ABC Corporations total liabilities at the year ended at 31 December 2011 are 170, 000 and the liabilities of the firm to trade creditors at the same date amount to 20,000, determine the amount of ABC long term liabilities at the year ended at 31 December 2011:
- 129,000
- 143,000
- 100,000
- 150,000
- 179,000
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