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How much would be paid out to shareholders

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Reference no: EM132616520

Question - Adjustments to be effected on 28 February 2018

The following was found as per physical count.

1. Trading Stock R80 300

2. Packing Material R700

3. Depreciate equipment at 10% p.a. on the diminishing balance method.

4. Write of further credit losses of R2000.

5. Adjust allowance for credit losses to 5% of trade debtors.

6. Provide for the outstanding interest on loan.

7. Provide rates at 2% on value of land and buildings.

8. Final Dividends of 5 cents per share was declared on 28 February 2018

Income Tax is calculated 28% of net profit.

REQUIRED - Use the information above and draw up the following:

1. STATEMENT OF COMPREHENSIVE INCOME

2. Assume that board of directors decide to plough back 60% of the net profit, how much would be paid out to shareholders?

Reference no: EM132616520

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