Question

MOZART Company, a limited liability company has a commercial activity It buys and sells books and CDs devoted to the learning of foreign languages The balance sheet at 31 December, N-1 is presented as follows. Balance sheet at 31 December, N (in 000 ) ASSETS SHAREHOLDERS' EQUITY AND LIABILITIES Fixed assets Shareholders' equity Capital Retained earnings Equipment (net value 1000 900 460 Current assets Inventory of GFR Accounts receivable (a) Liabilities 100 400 150 Financial debt Accounts payable (b) Income tax payable (b) Total 120 144 1774 274 Cash Total a to be received in N 774 b to be paid in N The following budgeted figures are given for N (in 000 6): will be received from customers during the year). 2. Purchases budget (merchandise): 500 (400 will be paid to suppliers during the year). 3. Budgeted ending merchandise inventóry: 150 4. Finance budget: repayment of financial debt for 10

Please do balance sheet, income statement and cash flow statement for this company.

Answer 1

	Income statement:
					$	$
	Sales					1500
	Less: Cost of goods sold
	Beginning inventory				100
	Add: Purchases				500
					600
	Less: Ending inventory				150	450
	Gross profit					1050
	Less:
	Other operating expenses				700
	Depreciation				100	800
	Net income					250
				Balance sheet:
	Assets:				$	$	Shareholder's equity and liabilities				$	$
	Fixed assets						Shareholder's equity
	Equipment (net value)						Capital					900
	Beginning balance				1000		Retained earnings
	Add: Fixed assets purchase				300		Beginning balance				460
					1300		Add: Net income				250	710
	Less: Depreciation				100	1200
							Liabilities:
	Current assets:						Financial debt
	Inventory of GFR					150	Beginning balance				150
	Accounts receivable						Less: repayment				10	140
	Sales				1500		Accounts payable
	Less:received from customers				1000	500	Purchase				500
	Cash	(Refer cashflow statement)				0	Less: Paid to suppliers				400	100
	Total					1850	Total					1850