The following information was extracted from the books of Jamaica National Baking Supplies Limited located at 45 Maxfield avenue Kingston 5 for the period ending December 31, 2022 PARTICULARS 2,000,000 Ordinary shares $2. each) Share Premium Reserve Motor Vehicles at cost Building at cost Office Furniture and Fixtures at cost Machinery at cost Purchases Sales 7.5 % Preference shares of $1 each Salaries & Wages DR (3) 2,500,000 2,300,000 1,700,000 1,200,000 2,200,000 1,300,000 CR (S) 4,000,000. 650,000 5,800,000 1,600,000 Returned earning previous year Electricity Water Opening Stock January 1,2020 Telephone Director Remuneration Bad Debt written off Provision for Bad debt Debtors & Creditors Cash at Bank NCB Bank Overdraft - BNS TOTAL 400,000 120,000 Motor Vehicle 20% p.a. Building 2% Office Furniture and Fixtures 10% 140,00 90,000 250,000 140,000 520,000 810,000 13,670,000 740,000 80,000 450,000 The following additional information is available: a) Authorize share capital is 5,000,000 $1.50 ordinary shares and 2,000,000 $1 preference shares. b) Closing stock amounted to $250,000.00 as at December 31,2022 c) A dividend of 6 cents per share is proposed for ordinary shareholders. d) The preference shareholders are to be paid their dividends. e) Electricity bill unpaid at December 31, 2022 was $27,500.00. f) Provision for bad debt is to be adjusted to 15% of debtors on the books as at December 31,2022 g) The Depreciation policy for all assets is to be calculated as follows using the straight-line method: 350,000. 13,670,000 Machinery 10% h) Included in the bad debt figure in the trial balance is the Sum of $40,000 which was written off a debtor Paul Green account. Paul subsequently turned up with a BNS cheque in the amount of $45,000 to settle the outstanding balance on his account. This adjustment must be reflected in the year end finical Report. i) Bank charges and other user fees in the amount of $30,500 were reflected in the BNS bank statement at the end of the financial year and the financial director wanted this adjustment to be reflected in the financial report at the end of the accounting period. Task A a. Prepare the statement of comprehensive Income for the period ending December 31,2022 (30 Marks) b. Prepare the statement of financial position as at December 31, 2022 (30 Marks) TASK B Assume purchases and sales are all on credit terms. a) Calculate the following ratios for Jamaica National Baking Supplies Limited at the end of the financial period December 31, 2022: (1) The gross profit margin (2) The net profit margin (3) Asset turnover (4) Current ratio (5) Quick asset ratio (6) Debtors' collection period (7) Creditors' payment period (8) Stock turnover ratio Task D (16 marks) Task C The management team is considering changing the method of depreciation used to depreciate the business fixed assets from the straight-line method to the reducing balance method. Write a letter to the management team explaining the difference between straight-line and the reducing balance method of depreciation and the formulas used to calculate depreciation using both methods. You are also required to state two advantages each when using either method. (10 Marks) Included in the trial balance debtors' figure is an amount owed by max traders limited located at 20 West i Avenue Kingston 10, for goods purchase on April 15, 2022, valued one hundred and thirty thousand dollars $130,000. Max traders has not make any payment on their account to date. They were given thirty days (30) credit period. As the accounting officer write a letter to this customer clearly stating the number of days their account is in arrears as at the end of the accounting period. Interest and penalties are charge at a rate of 10% on all outstanding balance owed must be highlighted in the letter. (4 marks)