[CielSky]

I. The following has been extracted from the books of Hill Ltd.
Trial balance as at 31 December 2008:

K K
Ordinary shares of 50p each 200,000
K1 Preference shares 10% 70,000
Land 40,000
Buildings 90,000
Fixtures and fittings 10,000
Bank interests 3,500
Purchases 1,010,000
Sales 1,300,000
Trade receivables 98,000
Trade payables 85,000
Wages and salaries 63,000
Administrative expenses 50,000
Rents and insurance 45,000
Accumulated depreciation 1 January 2008
- Buildings 22,000
- Fixtures and fittings 8,000
Allowance for receivables 1,500
Advertising 25,000
10% debentures 2012 150,000
Bank 38,000
Inventory at 1 January 2008 570,000
Retained earnings balance 1 January 2008 213,500
Debentures interest paid 7,500
2,050,000 2,050,000

The following items still need to be taken into account:

1. After an examination of the sales ledger, an amount of K 14,000 is to be written off and a
general allowance of 5% of the remaining balance is to be provided for.
2. Closing inventory at 31 December 2008 was valued at K 482,250.
3. Depreciation is to be provided as follows:
Buildings : straight line over 20 years ;
Fixtures and fittings : straight line over 6 years ( residual value of K 1,500).
4. Corporation tax of K 22,000 for the year is to be provided.
5. The following accruals for expenses at 31 December 2008 need to be made:
Insurance K 2,137
Administration K 1,475
6. The following prepayments for expenses at 31 December 2008 need to be made:
Rent K 5,496
Advertising K 12,000
7. An ordinary dividend of 10p per share has been proposed.

Required: Prepare an income statement for the year ended 31 December 2008 and a balance sheet at that date.

II. The following information is available in respect of Zaw enterprise.
Income statement for the year ended 30 September 2008

K000
Revenue 2,000
Cost of sales 1,379
Gross profit 621
Operating expenses 390
Profit before interest and tax 231
Finance costs 22
Profit before tax 209
Tax 70
Profit after tax 139

Balance sheet as at 30 September 2008
2007 2008
K000 K000
Assets
Non-current assets 1,000 1,140
Current assets 350 460
Total assets 1,350 1,600
Equity and liabilities
Equity
Ordinary share capital 160 200
Share premium - 80
Retained earnings 590 729
750 1,009
Non-current liabilities 130 190
Current liabilities
Tax 100 80
Bank overdraft 20 -
Others 350 321
470 401
Total equity and liabilities 1,350 1,600

The following informations are also relevant:
1. As at 30 September 2008 the current assets of K 460,000 includes bank balance of K 30,000.
2. Depreciation charges for the year ended 30 September 2008 was K 100,000.
3. During the year ended 30 September 2008, a non-current asset with a carrying value of
K 110,000 was sold at a loss of K 35,000.


Required:
Prepare a cash flow statement for Zaw enterprise for the year ended 30 September 2008 and comment on the financial position of Zaw as shown by the cash flow statement you have prepared.

III. From the following information, write a report for a potential investor in Tiger enterprise assessing the financial position and performance of the enterprise.
Income statement for the year ended:
31-12-07 31-12-08
Km Km
Revenue 6,709 5,875
Cost of sales 4,699 4,128
Gross profit 2,010 1,747
Distribution costs 424 387
Administration costs 603 563
Operating profit 983 797
Interest paid 43 5
Profit before tax 940 792
Tax 288 242
Profit after tax 652 550

Balance sheet as at :
31-12-07 31-12-08
Km Km
Assets
Non-current assets 3,712 3,611
Investments 179 125
3,891 3,736
Current assets
Inventories 720 651
Trade receivables 1,011 848
Bank and cash 165 88
1,896 1,587
Total assets 5,787 5,323
Equity and liabilities
Equity
Ordinary share capital K1 shares 2,739 2,744
Revaluation reserves 40 40
Retained earnings 1,043 616
3,822 3,400
Non-current liabilities: 5% debentures 427 150
Current liabilities
Trade payables 1,538 1,773
Total equity and liabilities 5,787 5,323

[Curlyben]

Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html

[Wondergirl]

You are kidding, right? What work have YOU done on this homework assignment?

(We don't do homework on this site, but we will help you with understanding something and by critiquing what you have done.)

[joypulv]

Prepare a cash flow statement and write a report? Gee, did I miss anything?
I'll get right on it.
Suggestion: switch majors or drop out and get a job.