Watch Me Flex (WMF) Watch Me Flex (WMF) is a watch retailer based in Shanghai, China. It operates as a partnership between three owners, Eric, Nicolas, and Alvin. It specializes in the distribution of luxury branded watches, such as Rolex, Patek Phillipe, and Audemars Piguet. Due to the falling economic growth in China, WMF has been facing declining sales revenue during the past year. Further, with the crackdown of corruption, The State Administration of Taxation is reviewing many businesses. To prepare for WMF's review, the owners hired a new finance manager to prepare the final accounts for the tax authority's review. Table 1: Select financial information for WMF for 2019. Figures in Chinese yuan (#). Items ( * ) Sales revenue 12,000,000 Total current assets 2,570,500 Total current liabilities 2,880,780 Utilities 95,320 Cost of goods sold (COGS) 10,500,000 Equity X Rent 155,000 Salaries Y Long-term bank loan 970,500 Depreciation (in 2019) 77,200 Net fixed assets 1,350,500 Total expenses 1,218,400 Interest 123,500 Promotion expenses 30,780 The State Administration of Taxation in China stipulates a standard corporate tax rate of 25%. The fiscal year ends on 31 December for WMF