Reference no: EM132217732
Question: The following are the summarized trial balances of Chilly Chutneys Ltd at 31 December 20x2 and 20x1 respectively.
LODAY Ltd
Trial balance at 31 December
20x2 20x1
N$ N$
Plant and equipment at cost 550 000 400 000
Plant and equipment: Accumulated depreciation (200 000) (100 000)
Investment 150 000 -
Account receivables 180 000 160 000
Inventory 250 000 180 000
Investment income receivables 20 000 10 000
Cash at bank 60 000 40 000
Loss on sales of investment 20 000 -
Interest expense 50 000 40 000
Taxation expense 100 000 70 000
Dividends declared 40 000 40 000
1 220 000 840 000
Share capital 190 000 100 000
Dividends payables 20 000 40 000
Account payables 120 000 60 000
Tax liability 30 000 10 000
Interest payables 10 000 40 000
Long term loan 400 000 300 000
Operating profit 290 000 190 000
Investment income 20 000 -
Retained earnings (opening) 140 000 100 000
1 220 000 840 000
Consider the following additional information:
1. Depreciation of N$ 120 000 was provided during 20x2
2. Plant and equipment with the cost of N$50 000 were sold during the year and a loss of N$ 10 000 was incurred.
3. An investment acquired for N$ 30 000 during the year was disposed of before year end.
You are required to:
1. Calculate the amount for profit before tax and the net profit for the year
2. Prepare the statement of financial position and the statement of changes in equity as 31 December 20x2 (comparative figures are required)
3. Prepare a statement of cash flow for LODAY Ltd for the year ended 31 December 20x2. Use the indirect method.