Reference no: EM132926829
Question - The current year income statement of DEF Company shows the following:
Sales 2,400,000
Cost of sales 960,000
Gross profit 1,440,000
Unrealized gain on financial asset at fair value 25,000
Gain from physical change of biological assets 12,000
Gain from price change of biological assets 8,000
Interest income 40,000
Total income 1525,000
Expenses
Sales salaries 500,000
Office salaries 200,000
Delivery expenses 40,000
Store utilities 30,000
Office utilities 10,000
Depredation - Right of Use 40,000
Depreciation - office equipment 60,000
Depreciation - store equipment 48,000
Bad debt expense 12,000
Interest expense on lease liability 10,000
Total 950,000
Net income before tax 575,000
Income tax expense 172,500
Net income after tax 402,500
Additional information -
1) Credit sales constitutes 80% of net sales, 20% of which is not collected during the year. The allowance for bad debts has no opening balance during the current year.
2) The entity's biological assets have total fair value of Php180,000. New born hogs at year-end have total fair value of Php30.000 which were not recorded by the entity, There were no acquisition of biological assets during the year.
3) Ending inventory is 20% of cost of goods available for sale. Purchases, which is 90% of cost of goods available for sale, were all on credit 8% of which is unpaid as of year-end.
4) The unrealized gain resulted from the change in fair value of a financial asset at fair value through Other comprehensive income that has a fair value of Php170,000 at year-end. The instrument was acquired last year for Php140,000.
5) The office and store equipment has a remaining useful life of 5 years and 7 years as of January 1 of the current year, respectively. Both equipment were purchased in prior years.
6) Salaries include 20% for share appreciation rights and 10% Stock options, both have 3 years vesting period both the share appreciation rights and stock options were granted during the year. Salaries payable amounted to 10% of the remainder.
7) The total utilities paid during the year, of which Php14,000 pertains to payment for utilities incurred in the previous period., approximated to 90% of the total utilities expense incurred during the year.
8) The entity entered into a 5-year lease contract for an ice cream dispenser on January 1 of the current year. The equipment has a useful life of b years. The lease payment during the year amounted to Php40,000, while the next lease payment is due two years from the end of the current reporting period.
9) The entity has 200,000 ordinary shares with a Php10 par value which were originally issued for Php1,800,000 cash, and Land of Php2,000,000, There are no other equity accounts except for Retained Earnings.
10) The ending cash balance amounted to Php900,000.
Requirement - Make the Statement of Financial Position (in Report Format).