Can you please help me prepare the Cash Flow Statement of Harmony Limited for the year ended 31 December 2020. INFORMATIONThe information provided below was extracted from the accounting records of Harmony Limited on 31 December 2020:Harmony LimitedExtract of Statement of Comprehensive Income for the year ended 31 December 2020RSales6 600 000Cost of sales(3 900 000)Gross profit2 700 000Operating expenses(1 710 000)Selling and administrative expenses1 260 000Depreciation450 000Operating profit990 000Interest expense(270 000)Profit before tax720 000Company tax(240 000)Profit after tax480 000Extract of Statement of Changes in Equity for the year ended 31 December 2020RetainedearningsRBalance on 01 January 20201 500 000Profit after tax480 000Dividends paid and proposed in 2020(180 000)Balance on 31 December 20201 800 000 Balances extracted from the Statement of Financial Position as at 31 December:20202019RRPlant and equipment3 750 0003 000 000Investments210 000240 000Inventories1 290 0001 230 000Accounts receivable1 140 0001 050 000Cash and cash equivalents300 000210 000Ordinary share capital1 860 0001 860 000Retained earnings1 800 0001 500 000Long-term loan360 000210 000Accounts payable2 520 0001 962 000Dividends payable120 000150 000Income tax payable30 00048 000Note:(a)Plant and equipment was purchased but there was no disposal.(b)The number of ordinary shares in issue was 930 000.(c)All purchases and sales of inventory were on credit.(d)Credit terms to debtors are 30 days. Debtors took approximately 28 days to settle their accounts during 2019.

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INFORMATION The information provided below was extracted from the accounting records of Harmony Limited on 31 December 2020: Harmony Limited Extract of Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 6 600 000 Cost of sales (3 900 000) Gross profit 2 700 000 Operating expenses (1 710 000) Selling and administrative expenses 1 260 000 Depreciation 450 000 Operating profit 990 000 Interest expense (270 000) Profit before tax 720 000 |Company tax (240 000) Profit after tax 480 000

INFORMATION The information provided below was extracted from the accounting records of Harmony Limited on 31 December 2020: Harmony Limited Extract of Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 6 600 000 Cost of sales (3 900 000) Gross profit 2 700 000 Operating expenses (1 710 000) Selling and administrative expenses 1 260 000 Depreciation 450 000 Operating profit 990 000 Interest expense (270 000) Profit before tax 720 000 |Company tax (240 000) Profit after tax 480 000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 53BE

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Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the beginning of the current year, Bloom changed its inventory method from LIFO to FIFO, and the cumulative effect (net of taxes) of this change was 28,000. In addition, Bloom earned net income of 150,000 and paid dividends of 30,000 in the current year. Prepare Blooms retained earnings statement for the current year.
Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
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Refer to RE5-1. Prepare a single-step income statement for Brandt Corporation for the current year.
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