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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:

  1. Prepare an Income Statement for the year ending 30 June 2021.
  2. Calculate the closing balance of retained earnings as at 30 June 2021.
  3. Prepare a Statement of Financial Position as at 30 June 2021, showing comparative information for the prior year.
  4. 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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