STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31 2020 2019 2018 Turnover 373,578 424,486 456,300 Cost of sales (253,604) (254,210) (198,900) Gross profit 119,974 170,276 257,400 Impairment of financial assets (2,477) (1,800) (5,400) Distribution costs (87,036) (91,309) (96,100) Administrative expenses (32,556) (50,656) (67,200) Other operating income 2,369 10,039 3,500 Operating profit 274 36,550 92,200 Finance income 2,594 4,949 7,200 Finance costs (2,069) (2,765) (3,400) Profit before income tax 799 38,734 96,000 Income tax expense (285) (13,718) (15,450) Profit for the year 514 25,016 80,550 Other comprehensive income - - - Total comprehensive income 514 25,016 80,550 Table 1 Source (Author, 2022) CLOUD 9 LTD STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31 Non-current assets 2020 2019 2018 Property, plant and equipment 178,315 187,380 197,000 Right-of-use assets 2,793 3,726 4,500 Intangible assets 1,426 867 1,200 Current assets 182,534 191,973 202,700 Inventories 94,372 96,606 99,500 Trade and other receivables 100,612 47,024 75,000 Current income tax assets 4,713 1,184 3,200 Cash and cash equivalents 54,021 39,032 46,950 253,718 183,846 224,650 TOTAL ASSETS 436,252 375,819 427,350 EQUITY AND LIABILITY Stated capital 10,000 10,000 10,000 Retained earnings 250,105 249,591 270,200 Liabilities 260,105 259,591 280,200 Non-current liabilities: Deferred tax liabilities 9,349 11,295 10,050 Employee benefit obligations 284 1,222 3,400 Lease liabilities 1,833 3,717 5,000 Current liabilities: 11,466 16,234 18,450 Lease liabilities 713 425 1,050 Employee benefit obligations 39 168 500 Trade and other payables 160,923 96,363 105,000 Dividend payable 3,006 3,038 3,700 164,681 99,994 110,250 Total liabilities 176,147 116,228 128,700 TOTAL EQUITY AND LIABILITIES Table 2 Source (Author, 2022) 436,252 375,819 427,350 Required: Using ratio analysis, assess the companies performance and advice management

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31 2020 2019 2018 Turnover 373,578 424,486 456,300 Cost of sales (253,604) (254,210) (198,900) Gross profit 119,974 170,276 257,400 Impairment of financial assets (2,477) (1,800) (5,400) Distribution costs (87,036) (91,309) (96,100) Administrative expenses (32,556) (50,656) (67,200) Other operating income 2,369 10,039 3,500 Operating profit 274 36,550 92,200 Finance income 2,594 4,949 7,200 Finance costs (2,069) (2,765) (3,400) Profit before income tax 799 38,734 96,000 Income tax expense (285) (13,718) (15,450) Profit for the year 514 25,016 80,550 Other comprehensive income - - - Total comprehensive income 514 25,016 80,550 Table 1 Source (Author, 2022) CLOUD 9 LTD STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31 Non-current assets 2020 2019 2018 Property, plant and equipment 178,315 187,380 197,000 Right-of-use assets 2,793 3,726 4,500 Intangible assets 1,426 867 1,200 Current assets 182,534 191,973 202,700 Inventories 94,372 96,606 99,500 Trade and other receivables 100,612 47,024 75,000 Current income tax assets 4,713 1,184 3,200 Cash and cash equivalents 54,021 39,032 46,950 253,718 183,846 224,650 TOTAL ASSETS 436,252 375,819 427,350 EQUITY AND LIABILITY Stated capital 10,000 10,000 10,000 Retained earnings 250,105 249,591 270,200 Liabilities 260,105 259,591 280,200 Non-current liabilities: Deferred tax liabilities 9,349 11,295 10,050 Employee benefit obligations 284 1,222 3,400 Lease liabilities 1,833 3,717 5,000 Current liabilities: 11,466 16,234 18,450 Lease liabilities 713 425 1,050 Employee benefit obligations 39 168 500 Trade and other payables 160,923 96,363 105,000 Dividend payable 3,006 3,038 3,700 164,681 99,994 110,250 Total liabilities 176,147 116,228 128,700 TOTAL EQUITY AND LIABILITIES Table 2 Source (Author, 2022) 436,252 375,819 427,350 Required: Using ratio analysis, assess the companies performance and advice management

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 3MC

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Question

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31

	2020	2019	2018
Turnover	373,578	424,486	456,300
Cost of sales	(253,604)	(254,210)	(198,900)
Gross profit	119,974	170,276	257,400
Impairment of financial assets	(2,477)	(1,800)	(5,400)
Distribution costs	(87,036)	(91,309)	(96,100)
Administrative expenses	(32,556)	(50,656)	(67,200)
Other operating income	2,369	10,039	3,500
Operating profit	274	36,550	92,200
Finance income	2,594	4,949	7,200
Finance costs	(2,069)	(2,765)	(3,400)
Profit before income tax	799	38,734	96,000
Income tax expense	(285)	(13,718)	(15,450)
Profit for the year	514	25,016	80,550
Other comprehensive income	-	-	-
Total comprehensive income	514	25,016	80,550
Table 1 Source (Author, 2022)

CLOUD 9 LTD

STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31

Non-current assets	2020	2019	2018
Property, plant and equipment	178,315	187,380	197,000
Right-of-use assets	2,793	3,726	4,500
Intangible assets	1,426	867	1,200
Current assets	182,534	191,973	202,700
Inventories	94,372	96,606	99,500
Trade and other receivables	100,612	47,024	75,000
Current income tax assets	4,713	1,184	3,200
Cash and cash equivalents	54,021	39,032	46,950
	253,718	183,846	224,650
TOTAL ASSETS	436,252	375,819	427,350

EQUITY AND LIABILITY Stated capital	10,000	10,000	10,000
Retained earnings	250,105	249,591	270,200
Liabilities	260,105	259,591	280,200
Non-current liabilities: Deferred tax liabilities	9,349	11,295	10,050
Employee benefit obligations	284	1,222	3,400
Lease liabilities	1,833	3,717	5,000
Current liabilities:	11,466	16,234	18,450
Lease liabilities	713	425	1,050
Employee benefit obligations	39	168	500
Trade and other payables	160,923	96,363	105,000
Dividend payable	3,006	3,038	3,700
	164,681	99,994	110,250
Total liabilities	176,147	116,228	128,700
TOTAL EQUITY AND LIABILITIES Table 2 Source (Author, 2022)	436,252	375,819	427,350
Required:

Using ratio analysis, assess the companies performance and advice management

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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