Question

Q3. (20 marks) Top Aces reported the following financial statement at the end of 2016 - 2016 2015 1 2 3 4 5 $ 23,984 18,088 259 3,880 536 $ 1,221 $ 21,115 15,333 234 4,248 485 $ 815 6 7 8 9 Income Statement Net sales Cost of sales Depreciation Other operating expenses Income tax expense Net income Balance Sheet Cash and cash equivalents Accounts laceivable Inventory Property and equipment, net Accounts payable Accrued liabilities Income tax payable $ 10 11 12 13 14 15 16 15 597 3,060 4,345 1,549 942 201 $ 14 609 2,790 3,425 1,366 639 190

Answer 1

a Collections from customers b Payments for other operating expenses c Payment of cash dividends S S S 23,996 3,577 626 609 23,984 24,593 597 23,996 Working Notes : a Collections from Customers Opening balance of Accounts Receivables $ Add: Sales $ $ Less: Closing balance of Accounts Receivables $ $ b Payments for other operating expenses Other Operating expenses $ Add: Opening balance of Accured Liabilities $ $ Closing balance of Accured Liabilities $ $ c Dividends paid Opening balance of Retained Earnings $ Add: Net Income $ $ Less: Closing balance of Retained Earnings $ $ 3,880 639 4,519 942 3,577 3,734 1,221 4,955 4,329 626