Financial Statement Essay

1348 words - 6 pages

1. Part A

Snake Ltd

Statement of Profit or Loss and Other Comprehensive Income

for the year ended 30 June 2017


|Revenue |6,588,000 |
|Cost of sales |-3,514,000 |
| Gross profit |3,074,000 |
| Other revenue |139,200 |
| Other income ...view middle of the document...

- Revenue = 6,600,000 (sales revenue) – 12,000 (sales return ) = 6,588,000

2.- Cost of sales = 3,424,000 (cost of sales) + 90,000 (freight inwards) = 3,514,000

3.- Other revenue = 46,200 (Sundry revenue) +50,000 (interest revenue) + 43,000 (dividends revenue) = 139,200

4.-Other income = 40,000 (proceeds on sale of plant & machinery) – 24,000 (carrying amount) = 16,000

5.- Selling expense = 120,000 (advertising expense) +115,000 (Freight outwards) +500,000 (sales staff salaries and commission expense) +210,000 (other selling expense) = 945,000

6.- Administrative expenses = 540,000 (administrative staff salaries expense) +370,000 (Other administrative expense) – 45,000 (non audit consulting services 75% of 60,000) = 865,000

7.- Other expense = 190,000 Other expenses – 68,000 (interest expens e) + 45,000 (non audit consulting services 75% of 60,000) = 167,000

8.- Financial cost = 68,000 (interest expense)

9. - Gain arising during the year on revaluation of freehold land = 1,276,000 (fair value) – 1,076,000 (carrying amount) = 200,000

10.- Gain arising during the year on revaluation of listed investments =100,000 (fair value) – 60,000 (original cost) = 40,000

Part B Snake Ltd

Statement of Financial Position

as at 30 June 2017

|ASSETS | $ |
|Current asset | |
|Cash and cash equivalent |650,000 |
|Trade and other receivable |1,313,000 |
|Inventory |1,950,000 |
|Other financial assets |222,000 |
|Total current asset |4,135,000 |
| | |
|Non-current asset | |
|Available-for-sale financial assets |100,000 |
|Property, plant & equipment |2,685,000 |
|Other financial assets |220,000 |
|Intangible assets |652,000 |
|Deferred tax assets |35,000 |
|Total non-current asset |3,692,000 |
| ...

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