Presented here are statement of income and retained earnings andComparative Balance Sheets for Madison Garden PTY LTD, whichoperates a National chain of sporting goods.
Statement of income and Retained Earnings for the year ended 31December 2016
| Net sales R48000 |
| Cost of goods sold R36000 |
| Gross profit R12000 |
| Selling , General and admin expense R6000 |
| Operating income R6000 |
| Interest expense 280 |
| Income before tax 5720 |
| Income tax expense 2280 |
| Net income 3440 |
| Preference Dividends 100 |
| Income available to ordinary shareholders 3340 |
| Ordinary dividends 500 |
| To Retained Earnings 2840 |
| Retained Earnings 01/01/2016 12000 |
| Retained Earnings by the end of the year 14840 |
|
| COMPARATIVE BALANCE SHEETS AS AT |
| DECEMBER 31 2016 2015 |
| Cash 840 2700 |
| Accounts Receivable 12500 9000 |
| Inventory 8000 5500 |
|
| Prepaid Insurance 100 400 |
| Total Current Assets 21440 17600 |
|
| Land 4000 4000 |
| Buildings & Equipment 12000 9000 |
| Accumulated Depreciation (3700) (3000) |
| Total Long Term Assets R12300 R10000 |
|
| Total Assets R33740 R27600 |
|
| Accounts payable 7300 5000 |
| Taxes Payable 4600 4200 |
| Notes payable 2400 1600 |
|
| Current portion of Mortgage bond 200 200 |
Total Current Liabilities 14500 11000 |
| Mortgage Bond 1400 1600 |
| Total Liabilities 15900 12600 |
| Preference Shares 1000 1000 |
| Ordinary Shares 2000 2000 |
|
| Retained Earnings 14840 12000 |
| Total 17840 15000 |
| R33 740 R27600 |
|
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