In: Accounting
Presented here are statement of income and retained earnings and Comparative Balance Sheets for Madison Garden PTY LTD, which operates a National chain of sporting goods.
Statement of income and Retained Earnings for the year ended 31 December 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 |
Madison Gardens Pty Ltd. Statement of Cash Flows For the year ended December 31, 2016 |
||
Cash Flows from Operating Activities | $ | $ |
Net Income | 3,440 | |
Adjustments to reconcile net income with net operating cash flows | ||
Depreciation Expense | 700 | |
Interest Expense | 280 | |
Increase in Accounts Receivable | (3,500) | |
Increase in Inventory | (2,500) | |
Decrease in Prepaid Insurance | 300 | |
Increase in Accounts Payable | 2,300 | |
Increase in Taxes Payable | 400 | |
Increase in Notes Payable | 800 | (1,220) |
Net cash flows from Operating Activities | 2,220 | |
Cash Flows from Investing Activities | ||
Cash paid to acquire Buildings and Equipment | (3,000) | |
Net cash used in Investing Activities | (3,000) | |
Cash Flows from Financing Activities | ||
Mortgage bond repaid | (200) | |
Interest paid | (280) | |
Preference dividends paid | (100) | |
Ordinary dividends paid | (500) | (1,080) |
Net decrease in cash | (1,860) | |
Beginning cash balance | 2,700 | |
Ending cash balance | 840 |
Note: you have not mentioned in the question what is to be calculated. Based on the type of question, i have provided cash flow statement. If more is required, please comment below.