ABC Limited list of balances on December 31, 2019 Sales Cost of sales S000 727,911 394,481 70,262 90.530 32.150 16,300 900 46,208 6,280 20,648 153,300 61,300 Distribution costs Administrative expenses Other operating expenses Other operating income Finance costs paid Corporation tax charge for (Note 4) Deferred taxation (Note 3) Corporation tax payable (taken to Statement of Financial Position) Property, plant & equipment Accumulated depreciation Long-term receivables Trade receivables Allowance for bad debts Other receivables and prepayments Cash and bank deposits Issued ordinary share capital General reserve Profit & Loss Account: January 1, 2019 Long term loan Trade payables Other payables and accruals Ordinary dividends paid Closing inventories 3.650 150.126 7,506 5,513 66,722 200,000 2,000 151.419 6,000 98,880 21.625 30,000 276,027 Additional information: 1. Current portion of long term receivable $1,000,000. 2. Current portion of long term loan $2,000,000. 3. Deferred taxation is to be reduced by $246,000. 4. Decrease corporation tax by $1,526,000. 5. Allowance for bad debts is 5% of trade debtors. 6. Interest rate of 15% per annum is charged on the long term loan. No interest was outstanding at the beginning or at the end of the financial year. 7. Issued share capital on January 1, 2019, and on December 31, 2019 is 100,000,000 ordinary shares 8. Authorized share capital: 500,000,000 ordinary shares 9. All finance costs were paid during the financial year. 10. The following relates to 2018: Sales Cost of sales Profit before interest & taxation Taxation charge $000 950,450 575,565 159,550 35,600 11. Property, plant and equipment: Assets Cost (Jan 1, 2019) Accumulated Charge for the Depreciation year (Jan 1, 2019) S000 S000 S000 8,920 41,000 32,200 2.970 12,880 1,025 6,440 Land Buildings Plant & machinery Furniture, fixtures & equipment Motor vehicles 9,200 7,165 1.740 60,000 17.480 12,000 During the year equipment acquired amounted to $2,480,000 and equipment costing $500,000 with accumulated depreciation of S400,000 was disposed of for $150,000. Required: a. Prepare the Statement of Comprehensive Income for the year ended December 31, 2019. b. Prepare the Statement of Changes in Equity for the year ended December 31, 2019. c. Prepare the Statement of Financial Position as at December 31, 2019. Comparative figures are required. d. Prepare the Statement of Cash Flow for the year ended December 31, 2019. e. Calculate the following ratios for ABC Limited for both years ended 31 December 2018 and 2019 and provide a brief assessment of the results. (Show your workings): i. Return on year-end capital employed (profit before interest and tax over total assets less current liabilities) 11. Net asset (equal to capital employed) turnover iii. Net profit (before tax) margin iv. Current ratio v. Closing inventory holding period (in days) vi. Trade receivables collection period (in days) vii. Trade payables' payment period (based on cost of sales) (in days) viii. Gearing (debt over debt plus equity) Further Instructions: Work must be presented in Microsoft Word or Microsoft Excel document. Any PDF Documents received will NOT be marked ABC Limited list of balances on December 31, 2019 Sales Cost of sales S000 727,911 394,481 70,262 90.530 32.150 16,300 900 46,208 6,280 20,648 153,300 61,300 Distribution costs Administrative expenses Other operating expenses Other operating income Finance costs paid Corporation tax charge for (Note 4) Deferred taxation (Note 3) Corporation tax payable (taken to Statement of Financial Position) Property, plant & equipment Accumulated depreciation Long-term receivables Trade receivables Allowance for bad debts Other receivables and prepayments Cash and bank deposits Issued ordinary share capital General reserve Profit & Loss Account: January 1, 2019 Long term loan Trade payables Other payables and accruals Ordinary dividends paid Closing inventories 3.650 150.126 7,506 5,513 66,722 200,000 2,000 151.419 6,000 98,880 21.625 30,000 276,027 Additional information: 1. Current portion of long term receivable $1,000,000. 2. Current portion of long term loan $2,000,000. 3. Deferred taxation is to be reduced by $246,000. 4. Decrease corporation tax by $1,526,000. 5. Allowance for bad debts is 5% of trade debtors. 6. Interest rate of 15% per annum is charged on the long term loan. No interest was outstanding at the beginning or at the end of the financial year. 7. Issued share capital on January 1, 2019, and on December 31, 2019 is 100,000,000 ordinary shares 8. Authorized share capital: 500,000,000 ordinary shares 9. All finance costs were paid during the financial year. 10. The following relates to 2018: Sales Cost of sales Profit before interest & taxation Taxation charge $000 950,450 575,565 159,550 35,600 11. Property, plant and equipment: Assets Cost (Jan 1, 2019) Accumulated Charge for the Depreciation year (Jan 1, 2019) S000 S000 S000 8,920 41,000 32,200 2.970 12,880 1,025 6,440 Land Buildings Plant & machinery Furniture, fixtures & equipment Motor vehicles 9,200 7,165 1.740 60,000 17.480 12,000 During the year equipment acquired amounted to $2,480,000 and equipment costing $500,000 with accumulated depreciation of S400,000 was disposed of for $150,000. Required: a. Prepare the Statement of Comprehensive Income for the year ended December 31, 2019. b. Prepare the Statement of Changes in Equity for the year ended December 31, 2019. c. Prepare the Statement of Financial Position as at December 31, 2019. Comparative figures are required. d. Prepare the Statement of Cash Flow for the year ended December 31, 2019. e. Calculate the following ratios for ABC Limited for both years ended 31 December 2018 and 2019 and provide a brief assessment of the results. (Show your workings): i. Return on year-end capital employed (profit before interest and tax over total assets less current liabilities) 11. Net asset (equal to capital employed) turnover iii. Net profit (before tax) margin iv. Current ratio v. Closing inventory holding period (in days) vi. Trade receivables collection period (in days) vii. Trade payables' payment period (based on cost of sales) (in days) viii. Gearing (debt over debt plus equity) Further Instructions: Work must be presented in Microsoft Word or Microsoft Excel document. Any PDF Documents received will NOT be marked