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Financial Accounting: Income Statement, Balance Sheet, and Cash Flow Statement

Answering questions related to the trial balance of Aderonke Ltd, a retailer, and calculating the inventory at the end of the year.

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Added on  2023-06-17

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This article covers financial accounting and provides solved assignments for preparing income statement, balance sheet, and cash flow statement. It also explains what will be added back or deducted from the cash flow statement. The subject is Financial Accounting and the course code is not mentioned. The content is relevant for college and university students studying accounting and finance.

Financial Accounting: Income Statement, Balance Sheet, and Cash Flow Statement

Answering questions related to the trial balance of Aderonke Ltd, a retailer, and calculating the inventory at the end of the year.

   Added on 2023-06-17

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Financial Accounting
Financial Accounting: Income Statement, Balance Sheet, and Cash Flow Statement_1
Table of Contents
TASK 1............................................................................................................................................3
Prepare Income Statement...........................................................................................................3
Balance Sheet..............................................................................................................................4
TASK 2............................................................................................................................................4
Prepare Cash Flow Statement.....................................................................................................4
What will be added back or deducted from the cash flow statement..........................................5
REFERENCES................................................................................................................................6
Financial Accounting: Income Statement, Balance Sheet, and Cash Flow Statement_2
TASK 1
Prepare Income Statement.
Particulars Amount (£)
Sales 164000
Less: Cost of Goods Sold 101600
Purchases 100000
Closing Inventory -4400
Opening stock 6000
Add: Drawings 500
Gross Profit 62900
Less: Operating Expenses 56590
Discount Allowed 920
Rent and Rates 8000
Carriage Outwards 1500
Heating & Lighting 4500
Salaries & Wages 37000
Motor Running Cost 720
Depreciation on Delivery Van 2250
Depreciation on Shop Fittings 1700
Operating Income 6310
Add: Discount received 500
Net profit 6810
Working Notes:
Financial Accounting: Income Statement, Balance Sheet, and Cash Flow Statement_3

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