Answer:
Net income = $31,130
Total Assets = Owner's Equity and Liabilities = $104,230
Explanation:
The the Income Statement of Profit or Loss and the Statement of Financial Position can be prepared as follows:
Sugar Almonds Ltd
Income Statement of Profit or Loss
For the Year Ended 31st December 2020
<u>Particulars $ $ </u>
Sales Revenue 93,700
Cost of sales:
Opening inventory 12,000
Purchases 49,000
Closing inventory - income statement <u> (24,350) </u>
Cost of sales <u> (36,650) </u>
Gross profit 57,050
Operating expenses:
Administrative Expenses (850)
Rent paid (2,000)
Telephone (900)
Wages (21,650)
Travel expenses <u> (330) </u>
Total operating expenses (25,730)
Interest income (expense):
Interest paid <u> (190) </u>
Net income <u> 31,130 </u>
Sugar Almonds Ltd
The Statement of Financial Position
As at 31st December 2020
<u> </u><u>Particulars $ $ </u>
<u>Fixed Assets</u><u> </u>
Premises at cost 70,000
Vehicles at cost <u> 5,800 </u>
Total Fixed Assets 75,800
<u>Current Assets</u>
Cash 630
Bank 2,100
Closing inventory - Statmt of fin positn 24,350
Trade Receivables <u> 1,350</u>
Total Current Assets <u> 28,430 </u>
Total Assets <u> 104,230 </u>
<u>Owner's Equity</u>
Capital 72,000
Drawings (6,450)
Net income <u> 31,130 </u>
Total Owner's Equity 96,680
<u>Current Liabilities</u>
Trade Payables 6,400
VAT <u> 1,150 </u>
Total Current Liabilities <u> 7,550 </u>
Owner's Equity and Liabilities <u> 104,230 </u>
