Question
The following has been extracted from the trial balances of S&B Ltd for the last two years: 2021 2020 ($000) ($000) Sales (all on credit)
The following has been extracted from the trial balances of S&B Ltd for the last two years:
2021 | 2020 | |
($000) | ($000) | |
Sales (all on credit) | 3,215 | 5,250 |
Cost of goods sold | 2925 | 2,730 |
Doubtful debt expense | 740 | 525 |
Interest expense | 120 | 420 |
Salaries | 180 | 630 |
Depreciation | 60 | 210 |
Gain on sale of plant | 300 | 185 |
Cash | 2844 | 1,264 |
Inventory | 4,980 | 3,780 |
Accounts Receivable | 1,600 | 5,600 |
Allowance for doubtful debts | 160 | 560 |
Land | 2,170 | 2150 |
Plant | 1,750 | 2,100 |
Accumulated Depreciation | 300 | 490 |
Bank Overdraft | 140 | 4,890 |
Accounts payable | 5,620 | 4,280 |
Accrued Salaries | 382 | 462 |
Long-term loan | 1,510 | 240 |
Share capital | 4300 | 2530 |
Dividends paid | 0 | 190 |
Retained earnings | 1,442 |
Additional information:
- plant with a carrying value of $100,000 (original cost $350,000 and accumulated depreciation of $250,000) was sold during the year.
Required:
- Prepare an Income Statement for the year ending 30 June 2021.
- Calculate the closing balance of retained earnings as at 30 June 2021.
- Prepare a Statement of Financial Position as at 30 June 2021, showing comparative information for the prior year.
- Prepare a Statement of Cash Flows (and reconciliation of profit to operating cash flows) for the year ending 30 June 2021.
PROVIDE EXPLANATION TO YOUR ANSWERS.
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