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Finance: Income Statement, Statement of Financial Position, Net Cash Flows, Investment Appraisal, Break-Even Analysis

   

Added on  2022-11-24

10 Pages2020 Words413 Views
FINANCE

Table of Contents
Question: 1.......................................................................................................................................3
SECTION- B...................................................................................................................................5
QUESTION- 2.................................................................................................................................5
Question: 4.......................................................................................................................................8
REFERENCES..............................................................................................................................10

Question: 1
a) Income statement for the year ended 31 December 2020
Particulars Amount
Sales 1204
Less: cost of sales
Opening inventory
44
Purchases
805
- Closing Inventory -60 -789
Gross profit 415
Less: Expenses
Rates and insurance – Prepaid insurance (40 - 5) 35
Telephone 5
Energy bills + Outstanding energy bills (28 + 1) 29
Audit fee 10
Bad debts 2
Director’s remuneration 33
Salaries and wages + Outstanding wages (190 + 2) 192
Debenture interest + Outstanding debenture interest (4 + 2) (note 1) 6
Depriciation on vehicles (note 2) 12
Depriciation on equipment (100 * 20%) 20
Profit before tax 71
Less: Provision for taxation 20
Profit after tax 51
Less: Dividends
Interim ordinary dividend paid 15
Final proposed (300 * 0.06) 18
33
Retained profit for the year 18
Retained profit brought forward 141
Retained carry forward 159

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