Question

Create a Statement of cash flows

Note:

Dividends paid for 2019 is 2,151,941
Dividends paid for 2018 is 2,408,000

Credit 5,500,000 Credit 5,800,000 807,300 5% Preference share capital, P100 par 3,685,000.0 3,350,000.0 umulated depreciation Building 260,000.00 1,400,000 1,420,000 1,600,000 110,000 700,000 700,000 800,000 ated ated lated depreciation Store equipment Cooking equipmen Office e qu ance for doubtful accounts 7,500,000.0 5,500,000.0 3,500,000.0 22,744,988.00 150,000.0 720,000.0 800,000.0 3,500,000.0 SO Depreciation expense building expense - office equipment store 700,000.0 800,000.0 Dividends payable Finished goods inventory 1.374,912.0 1,354,320.0 2,545,940.0 Income tax payable Insurance expense of goods sold in transit nterest expense 2,544,740 2,889,580 428,940.0 96,000.0 60,000.0 20,000 Land Loss due to fire Notes payable, due on December 31, 2020 7,000,000.0 500,000.0 4,000,000.0 0.0 800,000 500,000 3,600,000.0 3,500,000.0 equipment 194,970.0 ce supplies expense 5,000,000 7,500,000 dinary share capital, P5 par 64,990.0 aid i Raw materials inventory Rental income Retained Earnings 954,800.0 940,500,0 240,000 5,140,530 3,217,050.0 2.144,700.0 laries and wagesc alaries and wages of sales agents 2,924,550.0 1,949,700.0 223,400 203,100 4,220,000 0,200,000 Sales discounts 442,200.0 884,400.0 402,000.0 804,000.0 les returns and allowances 750,000 825,000 are Share Premium Preference 870,000 Store equipment 4,000,000.0 4,000,000.0 428,930.0 389,940.0 1,000,000 1,500,000 ubscribed preference share capital Subscription receivable Ordinary 500,000 1,160,000 800,000 1,200,000.0 696,000.0 120,000.0 300,000.0 Treasury Shares at cost, ordinary Treasury Shares at cost, preference 60,500.0 1.128,600.0 72,761,710.0072,761,710.0064,843,840.0064,843,840 Additional information: 1. Inventories as of January 1 2019 2018 Raw materials inventory 940,500.00 570,000.00 820,000.00 Finished goods inventory 1,354,320.001,250,000.00 ork in process inventory 1,128,600.00 8 2. Cost of Goods Sold related expenses 2018 2019 548,000.009,405,00 477,400.00 470,250 90,960.00188,100.0 0.0 Purchases Freight-in Purchase returns and allowances Direct Labor Factory Overhead (including the depreciation expense for the cooking equipment) 5,892,100.005,590,000.00 for the cooking ,070,500.006,708,000.00 3. Preference shares are cumulative and non- participating. Dividends was declared last December 25, 2018 and paid last January 20, 2019800,000.00 Dividends was declared last December 28, 2019 and will be paid on February 1, 2020. 1,000,000.00 Provide the schedule for the dividend allocation

Answer 1

ANSWER

Statement of Comprehensive Income 2019 44,220,000 442,200 884,400 2018 40,200,000 402,000 804,000 Sales Less Sales Discounts Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Less Operating expenses Depreciation expense Building Depreciation expense- Office Equipment Depreciation expense Store Equipment Doubtful Accounts Freight Out Insurance epense of goods sold in transit Office Supplies expense Salaries & Wages of admin employees Salaries & Wages of sales agents Store Supplies expense Total Operating expenses Operating Income Other Income and expenses Interest expense Interest Income Loss due to fire 42,893,400 22,744,988 20,148,412 40,602,000 21,201,730 19,400,270 10 110,000 700,000 800,000 67,000 1,949,700 389,940 194,970 2,924,550 1,949,700 389,940 12 13 14 15 16 17 18 19 20 21 150,000 720,000 800,000 6,700 2,144,700 428,940 214,470 3,217,050 2,144,700 428,930 10,255,490 9,892,922 9,475,800 9,924,470 23 24 25 26 27 (96,000) 100,000 (500,000) (60,000) 20,000

Rental Income Net Income Before Tax Income Tax expense Net Income 28 29 30 31 32 240,000 256,000 9,636,922 2,891,080 6,745,842 210,000 170,000 10,094,470 2,545,940 7,548,530 The Retained earnings balance given in 2018 is Beginning Balance of Retained earnings without making any adjustment for net income and dividend paid. The Beginning balance of 2019 Retained earnings showing 5140530 and it showed that the ending balance of Retained Earnings for 2018 must be 5,140,530 34 35 36 37 38 39 40 41 42 43 Beginning Balance of Retained Earnings Add Net Income Less Dividend Paid Ending Balance of Retained Earnings 5,140,530 6,745,842 2,151,941 9,734,431 7,548,530 2,408,000 (7548530-5140530) 5,140,530 Note; As nothing is given in the question how much dividend has been paid in 2019 it has been that 31.9% of net inome has been paid in the year as in 2018 (2408000/7548530) 45 46

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Answer 2

ANSWER

Statement of Comprehensive Income 2019 44,220,000 442,200 884,400 2018 40,200,000 402,000 804,000 Sales Less Sales Discounts Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Less Operating expenses Depreciation expense Building Depreciation expense- Office Equipment Depreciation expense Store Equipment Doubtful Accounts Freight Out Insurance epense of goods sold in transit Office Supplies expense Salaries & Wages of admin employees Salaries & Wages of sales agents Store Supplies expense Total Operating expenses Operating Income Other Income and expenses Interest expense Interest Income Loss due to fire 42,893,400 22,744,988 20,148,412 40,602,000 21,201,730 19,400,270 10 110,000 700,000 800,000 67,000 1,949,700 389,940 194,970 2,924,550 1,949,700 389,940 12 13 14 15 16 17 18 19 20 21 150,000 720,000 800,000 6,700 2,144,700 428,940 214,470 3,217,050 2,144,700 428,930 10,255,490 9,892,922 9,475,800 9,924,470 23 24 25 26 27 (96,000) 100,000 (500,000) (60,000) 20,000

Rental Income Net Income Before Tax Income Tax expense Net Income 28 29 30 31 32 240,000 256,000 9,636,922 2,891,080 6,745,842 210,000 170,000 10,094,470 2,545,940 7,548,530 The Retained earnings balance given in 2018 is Beginning Balance of Retained earnings without making any adjustment for net income and dividend paid. The Beginning balance of 2019 Retained earnings showing 5140530 and it showed that the ending balance of Retained Earnings for 2018 must be 5,140,530 34 35 36 37 38 39 40 41 42 43 Beginning Balance of Retained Earnings Add Net Income Less Dividend Paid Ending Balance of Retained Earnings 5,140,530 6,745,842 2,151,941 9,734,431 7,548,530 2,408,000 (7548530-5140530) 5,140,530 Note; As nothing is given in the question how much dividend has been paid in 2019 it has been that 31.9% of net inome has been paid in the year as in 2018 (2408000/7548530) 45 46