The statement of financial position Asset Fixed as Inventory Teade debtors Bank and cash 488,584 21.400 21 650 0.540 17.800 25 200 0.00 399514 15.000 18.900 Trade creditors interest payable Loan 120.000 1900 ZARO Equity Share capital Share premium Reserve 200,000 230,000 10494 120,000 100.000 F78154 3901 The following statement of financial position and statement of comprehensive incomes for the year ended 31 December were extracted from the full set of financial statements of Alex Ltd. The statement of comprehensive income 20x9 Sales 150,000 Cost of sales Gross profe 81,000 Depreciation charge 13,000 Interest cost 7,200 Other operating expenses Proff before tax 13,000 Tax 2.600 Profe after tax 10.400 Additional information - During the year, a bonus issue of 1 share for every 4 held (The par value of the shares outstanding is $1) at 1 January 20X9 followed by a right issue on 5 February 20x9 at $1.2 each. - The company sold a machine with a NBV of $15,000 for $12,000. - A five years loan of $100,000 was raised on December 31, 20X8 with annual interest rate of 6%, and the interest expense has not been charged. Required: 1. What is the definiton of asset, liablity and equity? What are the the relationship between them? 2. What is the definition of inventory? What is the difference between inventory and non- current tangible assets? Please provide an example to caculate the cost of goods sold frome opening inventory\closing inventory. Why does company provide depreciation expense for non-current tangible assets? 4 Calculate related ratios and common Alex Ltd's long-term and short-term solvency." s Calculate the Inventory turnover period, Receivables collection period and Payables payment period and explain it's working capital cycle What are the differences between inventory's carriage inward and carriage outward when we include them into the statement of profit or loss? 64 A company values its inventory using the fint in, fint out furo) method. At 1 May 2012 the come had 700 engines in inventory, valued at $190 each During the year ended 30 Apr 2013 the following transactions took place Ily Purchased 500 5220 each Sold 400 engines for $360,000 1 February Purchased 300 engines at $2.30 each 15 A Sold 250 engines for $125,000 What is the value of the company's closing inventory of engines at 30 Apr 2013! A $188.500 B $19.500 c $166.000 D None of these figures (Workings are needed.) * To make double entries and show its capital structure following: (a) A'l for 4' bonus issue (b) A rights issue of '1 for 5' at $1.2 following the bonus issue, assuming all rights taken up . To make double entries for the machine disposed 10. To make double entries for the loan interest required 11. To prepare the statement of profit or loss for the year ended 31 December 20X9 ( The statement of financial position Asset Fixed as Inventory Teade debtors Bank and cash 488,584 21.400 21 650 0.540 17.800 25 200 0.00 399514 15.000 18.900 Trade creditors interest payable Loan 120.000 1900 ZARO Equity Share capital Share premium Reserve 200,000 230,000 10494 120,000 100.000 F78154 3901 The following statement of financial position and statement of comprehensive incomes for the year ended 31 December were extracted from the full set of financial statements of Alex Ltd. The statement of comprehensive income 20x9 Sales 150,000 Cost of sales Gross profe 81,000 Depreciation charge 13,000 Interest cost 7,200 Other operating expenses Proff before tax 13,000 Tax 2.600 Profe after tax 10.400 Additional information - During the year, a bonus issue of 1 share for every 4 held (The par value of the shares outstanding is $1) at 1 January 20X9 followed by a right issue on 5 February 20x9 at $1.2 each. - The company sold a machine with a NBV of $15,000 for $12,000. - A five years loan of $100,000 was raised on December 31, 20X8 with annual interest rate of 6%, and the interest expense has not been charged. Required: 1. What is the definiton of asset, liablity and equity? What are the the relationship between them? 2. What is the definition of inventory? What is the difference between inventory and non- current tangible assets? Please provide an example to caculate the cost of goods sold frome opening inventory\closing inventory. Why does company provide depreciation expense for non-current tangible assets? 4 Calculate related ratios and common Alex Ltd's long-term and short-term solvency." s Calculate the Inventory turnover period, Receivables collection period and Payables payment period and explain it's working capital cycle What are the differences between inventory's carriage inward and carriage outward when we include them into the statement of profit or loss? 64 A company values its inventory using the fint in, fint out furo) method. At 1 May 2012 the come had 700 engines in inventory, valued at $190 each During the year ended 30 Apr 2013 the following transactions took place Ily Purchased 500 5220 each Sold 400 engines for $360,000 1 February Purchased 300 engines at $2.30 each 15 A Sold 250 engines for $125,000 What is the value of the company's closing inventory of engines at 30 Apr 2013! A $188.500 B $19.500 c $166.000 D None of these figures (Workings are needed.) * To make double entries and show its capital structure following: (a) A'l for 4' bonus issue (b) A rights issue of '1 for 5' at $1.2 following the bonus issue, assuming all rights taken up . To make double entries for the machine disposed 10. To make double entries for the loan interest required 11. To prepare the statement of profit or loss for the year ended 31 December 20X9 (