90.2K

Verified Solution

Link Copied!

take the time you need before 27 July should I have the answer

of the Balance Sheet Statement of Financial Fornon Vuestion 1: Priyaration and Prew Down Trading Limited, a company listed on the Music Stock Exchange, is a trading and investment e company trades exclusively in steel and aluminium component, and also has an investing arm. ember I to eed you as their finance director to assist in the preparation Sepom pside-Down Trading Limited have just n me entity's 2021 financial statements. The financial period of the company is from August 31. company has provided you the following list of accounts, and the trial balance totals per can account as at end of their current final year: Trial Balance Figure Account Name $50,000,000 11% Debentures $5,000,000 7% Bonds (Due in less than 12 Months) $15.890,000 Accounts Payable S14,500,000 Accounts Receivables $11.950,000 Cash and Cash Equivalents $4,100,000 Copyright and R&D S56,100,390 Cost of Goods Sold $6,900,000 Current Tax liabilities $8,100,000 Employee Benefit Obligations Finance Expenses $4,502,000 Goodwill $18,540,000 Inventory $75,650,000 Loans Due in Less than 12 Months $16,850,000 Long-Term Investments $196,000,000 Long-Term Loans $215,580,000 Loss on Sale of Equipment $5,100,450 Other Payables $1,830,000 Other Receivables (Due in more than 12 Months) $1,520,000 Paid-Up Capital $218,702,000 Plant and Equipment $168,221,000 Prepaid Expenses $5,020,000 Property $312,512,000 Reserves $150,072,000 Retained Earnings $122,589,000 Sales Revenue $158,900,000 Short-Term Investments $6,500,000 Additional Information: 1. During the year, Upside-Down Trading Limited purchased $7,000,000 worth of machine equipment that has yet to be added to the relevant non-current asset account. 2. For the period ended August 31, 2021, Upside-Down Global Trading Limited recorded a loss of $7,500,000. This amount has already been closed to the Retained Earnings balance as per the trial balance. 3. The internal auditor found from a recent review that $4,000,000 of loans listed as being payable in next 12 months are not due till 2026. 4. All prepaid expenses are expected to be consumed by the end of December 31, 2021. Page 2 Question 2: Preparation and Presentation of the Income Statement Flexible and Confused Limited has just employed you as the new finance director. The first task you have been assigned to complete is to prepare the income statement for the 12-month period ended March 31, 2018. On your desk on your first day, the previous finance director lett valuable information to complete the task. 1. During the year Flexible and Confused Limited - a company that sells dishwashers - sold a total of 13,187,000 units at an average sales price of $41.25. 2. The old finance director also indicated that direct labour, direct material and applied overhead were equal to 20%, 12% and 25% of total sales revenue. 3. Following is a list of other expenses incurred by the company Expense Account Advertising and Marketing Costs Sales Entertainment Selling Insurance Office Repairs and Maintenance Office Depreciation Wages of General Operations Staff Salaries Sales Staff Administrative Travel Costs Total Incurred $5,512,000.00 $2,561,000.00 S690,000.00 $1,590,000.00 $14,457,000.00 $12,801,000.00 $11,036,000.00 $1,260,000.00 4. On January 1, 2018, the company sold a piece of equipment held for investment and recognized a loss on the sale of $4,221,000. 5. The company also enjoyed revenue from other sources noted as: Other Income totalling $9.050,000 and Interest Revenue totalling $8,661,000. 6. On April 1, 2017, the company sold land that resulted in a loss of $4,891,000. 7. If the company reports a profit during the year, the effective corporate tax rate is 25%. If a loss is reported the effective tax rate is zero. 8. The company incurred finance interest charges during the accounting period of $22.890,000. 9. The company is involved in joint venture operations. As a result of goof financial conditions, the company recorded a net gain of $6,079,000 from its share of the joint venture operations. 10. From the operations of its associate firms, the company expects to record a net gain of $42,287,000 for the financial period ended March 31, 2019 Required: Using the information supplied, prepare an income statement for Flexible and Confused Limited for the accounting period that conforms with IFRS IAS / recommendation and course requirements. (Hint: Expenses should be classified by function (e.g.. cost of goods sold) not nature. Page 14 of the Balance Sheet Statement of Financial Fornon Vuestion 1: Priyaration and Prew Down Trading Limited, a company listed on the Music Stock Exchange, is a trading and investment e company trades exclusively in steel and aluminium component, and also has an investing arm. ember I to eed you as their finance director to assist in the preparation Sepom pside-Down Trading Limited have just n me entity's 2021 financial statements. The financial period of the company is from August 31. company has provided you the following list of accounts, and the trial balance totals per can account as at end of their current final year: Trial Balance Figure Account Name $50,000,000 11% Debentures $5,000,000 7% Bonds (Due in less than 12 Months) $15.890,000 Accounts Payable S14,500,000 Accounts Receivables $11.950,000 Cash and Cash Equivalents $4,100,000 Copyright and R&D S56,100,390 Cost of Goods Sold $6,900,000 Current Tax liabilities $8,100,000 Employee Benefit Obligations Finance Expenses $4,502,000 Goodwill $18,540,000 Inventory $75,650,000 Loans Due in Less than 12 Months $16,850,000 Long-Term Investments $196,000,000 Long-Term Loans $215,580,000 Loss on Sale of Equipment $5,100,450 Other Payables $1,830,000 Other Receivables (Due in more than 12 Months) $1,520,000 Paid-Up Capital $218,702,000 Plant and Equipment $168,221,000 Prepaid Expenses $5,020,000 Property $312,512,000 Reserves $150,072,000 Retained Earnings $122,589,000 Sales Revenue $158,900,000 Short-Term Investments $6,500,000 Additional Information: 1. During the year, Upside-Down Trading Limited purchased $7,000,000 worth of machine equipment that has yet to be added to the relevant non-current asset account. 2. For the period ended August 31, 2021, Upside-Down Global Trading Limited recorded a loss of $7,500,000. This amount has already been closed to the Retained Earnings balance as per the trial balance. 3. The internal auditor found from a recent review that $4,000,000 of loans listed as being payable in next 12 months are not due till 2026. 4. All prepaid expenses are expected to be consumed by the end of December 31, 2021. Page 2 Question 2: Preparation and Presentation of the Income Statement Flexible and Confused Limited has just employed you as the new finance director. The first task you have been assigned to complete is to prepare the income statement for the 12-month period ended March 31, 2018. On your desk on your first day, the previous finance director lett valuable information to complete the task. 1. During the year Flexible and Confused Limited - a company that sells dishwashers - sold a total of 13,187,000 units at an average sales price of $41.25. 2. The old finance director also indicated that direct labour, direct material and applied overhead were equal to 20%, 12% and 25% of total sales revenue. 3. Following is a list of other expenses incurred by the company Expense Account Advertising and Marketing Costs Sales Entertainment Selling Insurance Office Repairs and Maintenance Office Depreciation Wages of General Operations Staff Salaries Sales Staff Administrative Travel Costs Total Incurred $5,512,000.00 $2,561,000.00 S690,000.00 $1,590,000.00 $14,457,000.00 $12,801,000.00 $11,036,000.00 $1,260,000.00 4. On January 1, 2018, the company sold a piece of equipment held for investment and recognized a loss on the sale of $4,221,000. 5. The company also enjoyed revenue from other sources noted as: Other Income totalling $9.050,000 and Interest Revenue totalling $8,661,000. 6. On April 1, 2017, the company sold land that resulted in a loss of $4,891,000. 7. If the company reports a profit during the year, the effective corporate tax rate is 25%. If a loss is reported the effective tax rate is zero. 8. The company incurred finance interest charges during the accounting period of $22.890,000. 9. The company is involved in joint venture operations. As a result of goof financial conditions, the company recorded a net gain of $6,079,000 from its share of the joint venture operations. 10. From the operations of its associate firms, the company expects to record a net gain of $42,287,000 for the financial period ended March 31, 2019 Required: Using the information supplied, prepare an income statement for Flexible and Confused Limited for the accounting period that conforms with IFRS IAS / recommendation and course requirements. (Hint: Expenses should be classified by function (e.g.. cost of goods sold) not nature. Page 14

Answer & Explanation Solved by verified expert

See Answer