Po frma Statments -Provinciat Impertshas assambed gst 2oLs Pnancial Statemersinc

Question

Po frma Statments -Provinciat Impertshas assambed gst 2oLs Pnancial Statemersincome Statement + frrancia oming y ranciel pryjecnsincome Sta tement+balance on for usen prepariog Ararcial plans 2015 Assets 9,000 sold a ,745 000 moctetade Cash -ao1, o0 Acct. Recevane 49,0 nventones 501,000 Total Correnk As ISsy,000 Ner Fxed Assesi 410,00 xpentes 8s 090 418,000 eretaneddividendse asooooT at Assets ago,,0000 -2015 Liabildies6totholdes Equi tu eSS: t Cash dividends as o taned earnings 43000 to refained Adt Powahe 69%,000 oks payable aoo ther Curce nt Liab lhes 4900 thl Cocrent Liabili hes 995590o payable.--090,000 N ,0oo oc 21,0 00 Relaned Eamings 1221,000

Explanation / Answer

INCOEM STATEMENT

AVERGE SALES => 4999000/12=> 416583

ACCOUNTS RECEIAVBLE IN 2015=> 619000

AVERAGE COLLECTION PERIOD=> 619000/416583 =>1.49 MONTHS

ACCOUNTS RECIEVABLE IN 2016 => 1.49 * AVERAGE MNTHLY SALES(2016) =>1.49*499500=> 744255

ACCOUNTS PAYABLE IN 2015=> 696000

COGS AVERAGE => 2745000/12 =>228750

AVERAGE COLLECTION PERIOD=>696000/228750=>3.04 MONTHS

ACCOUNTS PAYABLE IN 2016 => 3.04 * AVERAGE MNTHLY COGS(2016) =>3.04 *311500=> 946960

OTHER CURRENT LAIBILITIES=> 4900/416583 => 0.011

THEN => 0.011*499500 => 5495

CASH => 201000 * 2 => 402000

INVENTORIES => 507000* 2=> 1014000

ASSETS

1670000

LIABILITIES

SALES 5994000 LESS: COST OF GOODS SOLD 3738000 GROS PROFIT 2256000 LESS: OPERATING EXPENES 1115000 NET PROFIT BEFORE TAX 1141000 LESS TAX RATES(40%) 456400 NET PROFIT AFTER TAX 684600 LESS: CASH DIVIDENDS 273840 RETAINED EARNINGS 410760

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