1.   Develop a basic "accounting equation" (Assets= Liability + Owner's Equity) for the year 2018 & 2019.

2.   Calculate "Net Profit" of the company for the year 2018 & 2019 by using the "Simple Income Statement" format which you learned in the class?

3.   "Company's net income appears directly on the income statement and the owner's equity statements, and it is included indirectly in the company's balance sheet". Do you agree? Explain how the net income is shown in Balance Sheet.

4.   What is a total assets value of the company during 2018 and 2019? Provide calculation

5.   What is a total Liability value of the company during 2018 and 2019? Provide calculation

6.   What is a total Owner's Equity value of the company during 2018 and 2019? Provide calculation

7.   What is the accounting period of the company?

8. Which method (periodic or perpetual) the company has used to calculate the Cost of Inventory? Explain briefly.

        (if the company is service organization, then explain both methods briefly)
Transcribed Image Text:DHOFAR POULTRY COMPANY SAOG STATEMENT OF PROFIT OR LOSSs FOR THE YEAR ENDED 31 DECEMBER 2019 Note 2019 2018 RO RO (restated refer note 34) Income from operations Cost of operations 22 9,451,873 9,944,518 23 (7,655,051) (7,969,040) Gross profit 1,796,822 1,975,478 Other income 24 34,260 90,422 General and administrative expenses 25 (784,262) (809,483) Selling and distribution expenses 26 (702,097) (873,104) (Impairment loss)/ reversal on trade receivables 10 (493,933) 23,304 406,617 (Loss)/profit from operations Finance charges (149,210) 27 (390,526) (372,714) (Loss)/ profit for the year before taxation (539,736) 33,903 Income tax 20 46,883 (31,807) Net (loss)/ profit for the year (492,853) 2,096 Basic (loss)/ earnings per share 21 (0.012) 0.000
Transcribed Image Text:DHOFAR POULTRY COMPANY SAOG STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 Note 2018 RO (restated refer note 34) 2019 RO ASSETS Non-current assets Property, plant and equipment Right-of-use assets Intangible asset Deferred tax assets 5 7,108,375 7,667,433 76,759 65,613 16,699 7 70,933 20 7,826,504 7,179,308 Current assets 1,687,619 1,475,578 2,688,030 20,155 1,333,817 1,425,096 3,738,470 227,031 Inventories Biological assets Trade and other receivables Cash and bank balances 10 11 5,871,382 6,724,414 Total assets 13,697,886 13,903,722 EQUITY AND LIABILITIES Equity Share capital Legal reserve Special reserve Revaluation reserve Accumulated losses 12 4,000,000 221,560 4,000,000 221,560 137,033 669,607 (1,455,154) 13 14 137,033 15 641,208 (1,914,596) Total equity 3,085,205 3,573,046 Liabilities Non-current liabilities 745,903 162,672 16 Non-current portion of term loans Employees' end of service benefits Non-current portion of lease liabilities Deferred tax liabilities 229,225 182,002 52,207 17 20 21,730 463,434 930,305 Current liabilities 516,678 6,308,222 3,297,668 16 Current portion of term loans Bank borrowings Trade and other payables Current portion of lease liabilities Income tax payable 953,357 5,237,481 3,192,028 18 19 6 26,679 20 17,505 10,149,247 9,400,371 Total liabilities 10,612,681 10,330,676 Total equity and liabilities 13,697,886 13,903,722 Net assets per share 21 0.077 0.089 These financial statements were approved and authorised for issue by the Board of Directors on 22 -02 2020 and signed on their behalf by: Salim Abdullah Al Awadhi Chairman Salim Taman Musallam Al Mashani Chief Executive Officer The notes on pages 12 to 50 form part of these financial statements. Auditor's report: pages 1-6 Page: 7

Question

1.   Develop a basic &#34;accounting equation&#34; (Assets= Liability + Owner's Equity) for the year 2018 & 2019.2.   Calculate &#34;Net Profit&#34; of the company for the year 2018 & 2019 by using the &#34;Simple Income Statement&#34; format which you learned in the class?3.   &#34;Company's net income appears directly on the income statement and the owner's equity statements, and it is included indirectly in the company's balance sheet&#34;. Do you agree? Explain how the net income is shown in Balance Sheet.4.   What is a total assets value of the company during 2018 and 2019? Provide calculation5.   What is a total Liability value of the company during 2018 and 2019? Provide calculation6.   What is a total Owner's Equity value of the company during 2018 and 2019? Provide calculation7.   What is the accounting period of the company?8. Which method (periodic or perpetual) the company has used to calculate the Cost of Inventory? Explain briefly.        (if the company is service organization, then explain both methods briefly) DHOFAR POULTRY COMPANY SAOGSTATEMENT OF PROFIT OR LOSSsFOR THE YEAR ENDED 31 DECEMBER 2019Note20192018RORO(restated refernote 34)Income from operationsCost of operations229,451,8739,944,51823(7,655,051)(7,969,040)Gross profit1,796,8221,975,478Other income2434,26090,422General and administrative expenses25(784,262)(809,483)Selling and distribution expenses26(702,097)(873,104)(Impairment loss)/ reversal on trade receivables10(493,933)23,304406,617(Loss)/profit from operationsFinance charges(149,210)27(390,526)(372,714)(Loss)/ profit for the year before taxation(539,736)33,903Income tax2046,883(31,807)Net (loss)/ profit for the year(492,853)2,096Basic (loss)/ earnings per share21(0.012)0.000 DHOFAR POULTRY COMPANY SAOGSTATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019Note2018RO(restated refernote 34)2019ROASSETSNon-current assetsProperty, plant and equipmentRight-of-use assetsIntangible assetDeferred tax assets57,108,3757,667,43376,75965,61316,699770,933207,826,5047,179,308Current assets1,687,6191,475,5782,688,03020,1551,333,8171,425,0963,738,470227,031InventoriesBiological assetsTrade and other receivablesCash and bank balances10115,871,3826,724,414Total assets13,697,88613,903,722EQUITY AND LIABILITIESEquityShare capitalLegal reserveSpecial reserveRevaluation reserveAccumulated losses124,000,000221,5604,000,000221,560137,033669,607(1,455,154)1314137,03315641,208(1,914,596)Total equity3,085,2053,573,046LiabilitiesNon-current liabilities745,903162,67216Non-current portion of term loansEmployees' end of service benefitsNon-current portion of lease liabilitiesDeferred tax liabilities229,225182,00252,207172021,730463,434930,305Current liabilities516,6786,308,2223,297,66816Current portion of term loansBank borrowingsTrade and other payablesCurrent portion of lease liabilitiesIncome tax payable953,3575,237,4813,192,0281819626,6792017,50510,149,2479,400,371Total liabilities10,612,68110,330,676Total equity and liabilities13,697,88613,903,722Net assets per share210.0770.089These financial statements were approved and authorised for issue by the Board of Directorson 22 -02 2020 and signed on their behalf by:Salim Abdullah Al AwadhiChairmanSalim Taman Musallam Al MashaniChief Executive OfficerThe notes on pages 12 to 50 form part of these financial statements.Auditor's report: pages 1-6Page: 7

Accepted Answer

Total Assets = Liabilities + Owner's Equity