D1. LDSearch Modules LibraryAccumulated depreciation on vehiclesEquipmentAccumulated depreciation on equipmentShare ISEStock (1 April 20.8)DebtorsCreditorsBankSalesPurchasesConsumablesStationary expenseRent incomeWagesGeneral ExpenseResourcesAdditional Information• Stock on hand as at 31 March 20.9 was R 10,000The net profit for the year was R13 930.Bursaries and Graduate Programme5 50030 0003.0008.50020 0006.365590012 065126 76690 5057259343 17011 4752.367

Accumulated depreciation on vehicles Equipment Accumulated depreciation on equipment Share ISE Stock (1 April 20.8) Debtors Creditors Bank Sales Purchases Consumables Stationary expense Rent income Wages General Expense Additional Information • Stock on hand as at 31March 20.9 was R 10.000 The net profit for the year was R13 930. 5500 30 000 3.000 8500 20 000 6.365 5900 12 065 126 766 90 505 725 934 3170 11 475 2.367

Accumulated depreciation on vehicles Equipment Accumulated depreciation on equipment Share ISE Stock (1 April 20.8) Debtors Creditors Bank Sales Purchases Consumables Stationary expense Rent income Wages General Expense Additional Information • Stock on hand as at 31March 20.9 was R 10.000 The net profit for the year was R13 930. 5500 30 000 3.000 8500 20 000 6.365 5900 12 065 126 766 90 505 725 934 3170 11 475 2.367

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 80.7C

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Question 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020. RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500Required:(a) Show the formulae and compute the value of the following for Barry:(i) Purchases(ii) Gross profit(iii)Net Profit
ShafNita Sdn. Bhd. Statement of Financial Position as at 31 December2019 2020RM RM RM RM Non Current AssetsBuilding 100,000 100,000Fixtures less accumulated depreciation 3,600 4,000Van less accumulated depreciation 7,840 14,800111,440 118,800 Current AssetInventory 11,200 24,800Trade account receivable 12,800 16,400Bank 1,800 -Cash 440 400 26,240 41,600Total assets 137,680 160,400Finance by:Capital account:Balance at 1 January 74,080 105,080Add: Net profit for the year 70,400 42,320Cash introduced - 20,000144,480 167,400Less: Drawings (39,400) (43,200)105,080 124,200 Non Current LiabilitiesLoan (repayable in 10 years time) 20,000 30,000Current LiablitiesAccount Payable 12,600 6,012Bank overdraft - 188Retained earnings 32,600 36,200Total liabilities and equity 137,680 160,400 Additional information at 31 December 2020:  Fixtures bought in 2020 cost RM800. Van bought in 2020 cost RM11,000. Required: Prepare statement of cash flow for ShafNita Sdn. Bhd. for the year ended 31 December…
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Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio. Please help with the both questions mentioned
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