this is the financial guven info

The description fields on this tab are designed to use dropdown boxes. Unless you enter descriptions that exactly match the descriptions in those dropdown boxes, you will be marked as incorrect. If your device or software does not support dropdown boxes, it is critically important that you enter descriptions that exactly match the descriptions in the folllowing list, including capitalisation, spelling and punctuation. If you find you cannot select from dropdown boxes when entering descriptions in the fields to the left, it is strongly recommended that you copy and paste descriptions from the following list. Land & Buildings Bank Loans Plant & Equipment Ordinary Shares Accounts Payable less Depreciation on Plant & Equipment Retained Earnings Mortgage Loans Income Tax Payable less Depreciation on Motor Vehicles Corporate Bonds Accounts Receivable Bank Overdraft Preference Shares Cash less Depreciation on Furniture, Fixtures & Fittings Inventory Dividends Payable Pre-paid Expenses Furniture, Fixtures & Fittings Motor Vehicles Show black on white to print? N BUSSIAF INTRODUCTION TO ACCOUNTING AND FINANCE PART 2: PREPARING THE FINANCIAL STATEMENTS Thank you for submitting your advice regarding sources of finance. Your client has carefully considered your advice in setting up the new business. As you will see below, the client may have acted on all some or none of your advice. That is the nature of being a consultant. Nevertheless, the client is happy with the advice you offered and seeks further assistance from you. As the client looked further into the feasibility of the new business, it soon became clear that there was much more demand than previously realised, and immediate plans were made to increase the size of the operation. This meant raising significant amounts of capital, and it was felt that this would be difficult as a private company. It was therefore decided to set up a public company. New Business Name: Rakshith Enterprises Ltd The new business commenced operations on 31 December 2018. It is now just over one year later the middle of January 2020. Your client has asked you for assistance in preparing financial statements. Your task: Prepare the following financial statements, based on the information below. 1. Balance Sheet as at 31 December 2018 2. Profit and Loss Statement for the year ending 31 December 2019. 3. Balance Sheet as at 31 December 2019 4. Statement of Cash Flows for the year ending 31 December 2019. Financial information: The company was initially set up by issuing 240,000 shares at an issue price of $1 each A factory was purchased at a cost of $550,000 The new factory was largely financed by taking out a $457,000 mortgage loan. In addition to the mortgage loan, the company took out a $618,000 Interest-only unsecured bank loan In addition to the factory, the company purchased the following: Plant and Equipment to the value of $290,000 Furniture, Futures and Fittings to the value of $140,000 Inventory to the value of $194,000 All of the above transactions occurred late in Decembe 2018 Any cash remaining after these purchases was put into a bank account. On1 March 2019, the company took out a bank overdraft. The outstanding balance on 31 December 2019 was $36,000. This is to be On 1 March 2019, the company took out a bank overdraft. The outstanding balance on 31 December 2019 was $36,000. (This is to be recorded separately from the cash balance rather thin combined. On 1 July 2019, motor vehicles to the value of $160.000 were purchased On 31 December 2019, the company issued corporate bonds to the value of $660,000, and used the proceeds to purchase an additional factory costing $660,000. On 31 December 2019, the company issued 117.000 new ordinary shares at a price of $2 each and 215,000 new preference shares ata price of $1 each. Some of the amount raised was used to buy additional plant and equipment for the new factory at a cost of $250,000 During the course of the year ending 31 December 2019, the following transactions occurred: Products to the value of $2,091,000 were sold and delivered. These sales were made on the basis of one month's credit. of the $2,091 000 in sales occurring in 2019, products to the value of $167,000 were delivered in December 2019 and will not be paid for until January 2020, Raw materials to the value of $1,171.000 were ordered and taken delivery These purchases were made on the basis of one month's credit of the S1.171,000 in raw materials purchased in 2019. raw materials to the value of $131,000 were ordered and taken delivery of in December 2019 and will not be paid for until January 2020 Payment of Wages ($126,000) Payment of Rent for 2019 ($104,000) Payment of Motor Vehicle Running Expenses ($43,000). Payment of Insurance for 2019 (S40,000). Payment of interest ($65,000). Payment for Printing & Stationery ($21,000). Payment for Heating and Lighting for 2019 (524,000) Payment for Telephone, Postage and internet Charges ($17,000). In addition, an additional S8000 was paid in December for January's rent In addition to the above interest payment, the principalowing on the mortgage loan was reduced by $43,000 WHOLE PUT until January 2020, Raw materials to the value of S1, 171,000 were ordered and taken delivery of. These purchases were made on the basis of one month's credit. Of the $1,171,000 in raw matenals purchased in 2019, raw materials to the value of $131,000 were ordered and taken delivery of in December 2019 and will not be paid for until January 2020 Payment of Wages ($125,000). Payment of Rent for 2019 (5104,000). Payment of Motor Vehicle Running Expenses ($43,000). Payment of insurance for 2019 (540,000) Payment of interest ($65,000). Payment for Printing & Stationery ($21,000). Payment for Heating and Lighting for 2019 ($24,000) Payment for Telephone, Postage and intemet Charges ($17,000). In addition, an additional S38,000 was paid in December for January's rent. In addition to the above interest payment, the principal owing on the mortgage loan was reduced by $43,000. The value of inventory on 31 December 2019 was $225,000. Additional information: Depreciation on motor vehicles, plant and equipment and furniture, foctures and fittings is calculated on a straight-line basis at the rate of 10% per year. Land and Buildings is not depreciated. The company faces a tax rate of 20%. The company's Dividend Payout Ratios 65% Instructions: Complete the boxes in the "Part 2 (A) to (D)"tabs, save this file and upload it as your submission. You do not need to complete every cell in those tabs. Complete as many cells as you need to crastruct the vanous financial statements. Enter whole numbers. In thousands of dollars (.e. round off numbers to the nearest Wholenber of thousands of dollars) Submission Deadline: 11.55pm Sunday 13 September 2020 Format. Please do not change the name of this file. There is no need to include your student Number or your name in the file name: Word limit: Not Applicable The description fields on this tab are designed to use dropdown boxes. Unless you enter descriptions that exactly match the descriptions in those dropdown boxes, you will be marked as incorrect. If your device or software does not support dropdown boxes, it is critically important that you enter descriptions that exactly match the descriptions in the folllowing list, including capitalisation, spelling and punctuation. If you find you cannot select from dropdown boxes when entering descriptions in the fields to the left, it is strongly recommended that you copy and paste descriptions from the following list. Land & Buildings Bank Loans Plant & Equipment Ordinary Shares Accounts Payable less Depreciation on Plant & Equipment Retained Earnings Mortgage Loans Income Tax Payable less Depreciation on Motor Vehicles Corporate Bonds Accounts Receivable Bank Overdraft Preference Shares Cash less Depreciation on Furniture, Fixtures & Fittings Inventory Dividends Payable Pre-paid Expenses Furniture, Fixtures & Fittings Motor Vehicles Show black on white to print? N BUSSIAF INTRODUCTION TO ACCOUNTING AND FINANCE PART 2: PREPARING THE FINANCIAL STATEMENTS Thank you for submitting your advice regarding sources of finance. Your client has carefully considered your advice in setting up the new business. As you will see below, the client may have acted on all some or none of your advice. That is the nature of being a consultant. Nevertheless, the client is happy with the advice you offered and seeks further assistance from you. As the client looked further into the feasibility of the new business, it soon became clear that there was much more demand than previously realised, and immediate plans were made to increase the size of the operation. This meant raising significant amounts of capital, and it was felt that this would be difficult as a private company. It was therefore decided to set up a public company. New Business Name: Rakshith Enterprises Ltd The new business commenced operations on 31 December 2018. It is now just over one year later the middle of January 2020. Your client has asked you for assistance in preparing financial statements. Your task: Prepare the following financial statements, based on the information below. 1. Balance Sheet as at 31 December 2018 2. Profit and Loss Statement for the year ending 31 December 2019. 3. Balance Sheet as at 31 December 2019 4. Statement of Cash Flows for the year ending 31 December 2019. Financial information: The company was initially set up by issuing 240,000 shares at an issue price of $1 each A factory was purchased at a cost of $550,000 The new factory was largely financed by taking out a $457,000 mortgage loan. In addition to the mortgage loan, the company took out a $618,000 Interest-only unsecured bank loan In addition to the factory, the company purchased the following: Plant and Equipment to the value of $290,000 Furniture, Futures and Fittings to the value of $140,000 Inventory to the value of $194,000 All of the above transactions occurred late in Decembe 2018 Any cash remaining after these purchases was put into a bank account. On1 March 2019, the company took out a bank overdraft. The outstanding balance on 31 December 2019 was $36,000. This is to be On 1 March 2019, the company took out a bank overdraft. The outstanding balance on 31 December 2019 was $36,000. (This is to be recorded separately from the cash balance rather thin combined. On 1 July 2019, motor vehicles to the value of $160.000 were purchased On 31 December 2019, the company issued corporate bonds to the value of $660,000, and used the proceeds to purchase an additional factory costing $660,000. On 31 December 2019, the company issued 117.000 new ordinary shares at a price of $2 each and 215,000 new preference shares ata price of $1 each. Some of the amount raised was used to buy additional plant and equipment for the new factory at a cost of $250,000 During the course of the year ending 31 December 2019, the following transactions occurred: Products to the value of $2,091,000 were sold and delivered. These sales were made on the basis of one month's credit. of the $2,091 000 in sales occurring in 2019, products to the value of $167,000 were delivered in December 2019 and will not be paid for until January 2020, Raw materials to the value of $1,171.000 were ordered and taken delivery These purchases were made on the basis of one month's credit of the S1.171,000 in raw materials purchased in 2019. raw materials to the value of $131,000 were ordered and taken delivery of in December 2019 and will not be paid for until January 2020 Payment of Wages ($126,000) Payment of Rent for 2019 ($104,000) Payment of Motor Vehicle Running Expenses ($43,000). Payment of Insurance for 2019 (S40,000). Payment of interest ($65,000). Payment for Printing & Stationery ($21,000). Payment for Heating and Lighting for 2019 (524,000) Payment for Telephone, Postage and internet Charges ($17,000). In addition, an additional S8000 was paid in December for January's rent In addition to the above interest payment, the principalowing on the mortgage loan was reduced by $43,000 WHOLE PUT until January 2020, Raw materials to the value of S1, 171,000 were ordered and taken delivery of. These purchases were made on the basis of one month's credit. Of the $1,171,000 in raw matenals purchased in 2019, raw materials to the value of $131,000 were ordered and taken delivery of in December 2019 and will not be paid for until January 2020 Payment of Wages ($125,000). Payment of Rent for 2019 (5104,000). Payment of Motor Vehicle Running Expenses ($43,000). Payment of insurance for 2019 (540,000) Payment of interest ($65,000). Payment for Printing & Stationery ($21,000). Payment for Heating and Lighting for 2019 ($24,000) Payment for Telephone, Postage and intemet Charges ($17,000). In addition, an additional S38,000 was paid in December for January's rent. In addition to the above interest payment, the principal owing on the mortgage loan was reduced by $43,000. The value of inventory on 31 December 2019 was $225,000. Additional information: Depreciation on motor vehicles, plant and equipment and furniture, foctures and fittings is calculated on a straight-line basis at the rate of 10% per year. Land and Buildings is not depreciated. The company faces a tax rate of 20%. The company's Dividend Payout Ratios 65% Instructions: Complete the boxes in the "Part 2 (A) to (D)"tabs, save this file and upload it as your submission. You do not need to complete every cell in those tabs. Complete as many cells as you need to crastruct the vanous financial statements. Enter whole numbers. In thousands of dollars (.e. round off numbers to the nearest Wholenber of thousands of dollars) Submission Deadline: 11.55pm Sunday 13 September 2020 Format. Please do not change the name of this file. There is no need to include your student Number or your name in the file name: Word limit: Not Applicable