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    Moises82's Avatar
    Moises82 Posts: 4, Reputation: 1
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    #1

    May 7, 2007, 09:43 AM
    Income statement and balance sheet
    Help please here the question.

    1. Study the following financial year accounts of Brakers Ltd and answer the following questions.

    Items on the income statement on 28 February 1985

    Administration and sales expense 50 000
    Interest paid 7 500
    Gross income 157 500
    Income before tax 100 000
    Dividend on preference shares 15 000
    Dividend on common shares 30 000
    Net sales 456 000
    Tax 45


    1. Draw up income statement and show cost of sales, trade income the enterprise income, the net income assignable to common shareholders and the undivided income for the year and the undivided income for the year and the undivided income at the beginning of the year.

    2. Draw up a balance sheet, where assets are properly classified. Calculate separately the fixed, the floating assets, the net floating assets, the capital available on indefinite long term and on definite long term, outside capital, own capital and short term capital.


    Thank you for your time and help

    PLEASE SEND ANSWERS TO MY EMAIL Address [email protected]
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    May 8, 2007, 09:46 PM
    What do you think the answer is?
    Moises82's Avatar
    Moises82 Posts: 4, Reputation: 1
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    #3

    May 9, 2007, 03:52 AM
    Thanks Captain Forest,

    This I what I did so far Please help me :



    1. Brakers Ltd
    Income statemente 28 February 1985


    Turnover 456 000
    Cost of sales 298 500
    Gross income 157 500
    Admin& sales expense 50 000
    Trade income 107 500
    Investment income 0
    EBIT -Income before iterest & tax 107 500
    Interest paid 7 500
    EBT- income before tax 100 000
    Tax 44%

    Net income after tax 55 000
    Preference devidend 15 000
    Net income from common shareholders 40 000
    Common devidends 30 000
    Undevided for the year 10 000
    Undevided at beginning 40 000
    Undevided at end 50 000



    2. Brakers Ltd
    Balance sheet 28 February 1985


    OWN CAPITAL

    Common shares 30 000
    General reserves---
    Non devisible reserves 55 000
    Common shares interest 7500
    Preference on shares 15 000
    Mortgage loan----

    TOTAL 107 500


    FIXED ASSETS

    Land and building -
    Machinery & equip -

    Floating assets(current assets):

    Cash 55 000
    Trade debtor ---
    Stock - ----

    Floating Liabilities:

    Bank overdraft-----
    Trade creditors----
    Tax due 45 000
    Expenses due(devidend due) 7500


    TOTAL 107 500

    MY QUESTIONS ARE :

    1- how do I calculate the Capital on indefinit and definite long term
    2-ouside capital
    3- short term capital

    Please help in correcting me,
    Moises82's Avatar
    Moises82 Posts: 4, Reputation: 1
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    #4

    May 16, 2007, 04:27 AM
    CaptainForest,

    Can you help me? Say something please

    Thanks still waiting,
    Moises82's Avatar
    Moises82 Posts: 4, Reputation: 1
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    #5

    May 16, 2007, 04:29 AM
    Can anyone please help any suggestions are welcome THANK YOU!

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