Solution-Prepare an income statement for the year ending

Prepare an income statement for the year ending june

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Reference no: EM133101239

Question - The following has been extracted from the trial balances of S&B Ltd for the last two years:

	2021	2020
	($000)	($000)
Sales (all on credit)	3,215	5,250
Cost of goods sold	2925	2,730
Doubtful debt expense	740	525
Interest expense	120	420
Salaries	180	630
Depreciation	60	210
Gain on sale of plant	300	185
Cash	2844	1,264
Inventory	4,980	3,780
Accounts Receivable	1,600	5,600
Allowance for doubtful debts	160	560
Land	2,170	2150
Plant	1,750	2,100
Accumulated Depreciation	300	490
Bank Overdraft	140	4,890
Accounts payable	5,620	4,280
Accrued Salaries	382	462
Long-term loan	1,510	240
Share capital	4300	2530
Dividends paid	0	190
Retained earnings		1,442

Additional information: plant with a carrying value of $100,000 (original cost $350,000 and accumulated depreciation of $250,000) was sold during the year.

Required -

1. Prepare an Income Statement for the year ending 30 June 2021.

2. Calculate the closing balance of retained earnings as at 30 June 2021.

3. Prepare a Statement of Financial Position as at 30 June 2021, showing comparative information for the prior year.

4. Prepare a Statement of Cash Flows (and reconciliation of profit to operating cash flows) for the year ending 30 June 2021.

Reference no: EM133101239

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Prepare an income statement for the year ending june

Reference no: EM133101239

Reference no: EM133101239

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