Income Statement and Balance Sheet
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.
