MICRON INDUSTRIES LIMITED Income Statement For the years ended Dec. 31, 2018 and 2019 2018 2019 S000's S000's 900000 1125000 Sales 300000 306600 Cost of Goods Sold 600000 818400 Gross Profit Selling and Administrative Expenses Depreciation Expense Advertising Expenses Earnings Before Interest and Taxes 150000 156000 54000 57000 18000 21000 378000 584400 Interest Expense 3000 3000 Taxable Income 375000 581400 Taxation (35%) 131250 203490 Net Income 243750 377910 Dividends (40N) 97500 151164 Addition to Retained Earnings 146250 226746 Additional Information Share Price 21 27.3 Ordinary Shares Outstanding 120000000 144000000 MICRON INDUSTRIES LIMITED Statement of Financial Position As at Dec. 31, 2018 and 2019 2019 ASSETS Current Assets Inventories 2018 LIABILITIES & EQUITY Current Liabilities 2018 so00's so00's 2019 so00's 276000 330000 270000 264000 So00's Accounts Payables Notes Payables Accounts Receivables 138000 150900 288900 294000 114000 132654 246654 90000 Cash and Equivalents 210900 768900 876000 Non current Liabilities Net Faed Assets 120000 408900 Total Liabilities Equity Common Stock Retained Earnings Total Equity 630600 690000 336654 264000 726600 990600 276000 953346 Total Assets 1229346 1399500 1566000 Total Liabilities & Equity 1399500 1566000
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
(b) Calculate the following for 2019:
i. Operating
ii. Net Capital Spending
iii. Change in Net
iv. Cash Flow from Assets
v. Cash Flow to Creditors
vi. Cash Flow to Stockholders
ONLY PARTS iv, v, vi to be done please.
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