Reference no: EM132581480

Perkasa Berhad (PB) was formed on 1 January 2016. Additional data for the year follow:

a. On 1 January 2016, PB issued no par common stock for RM500,000.

b. Early in January, PB made the following cash payments:

1. For store fixtures, RM54,000

2. For merchandise inventory, RM270,000

3. For rent expense on a store building, RM11,000

c. Later in the year, PB purchased merchandise inventory on account for RM244,000. Before year-end, PB paid RM144,000 of this account payable.

d. During 2016, PB sold 2,300 units of merchandise inventory for RM225 each. Before year-end, the company collected 90% of this amount. Cost of goods sold for the year was RM320,000 and ending merchandise inventory totaled RM194,000.

e. The store employs three people. The combined annual payroll is RM88,000, of which PB still owes RM6,000 at year-end.

f. At the end of the year, PB paid income tax of RM20,000. There are no income taxes payable.

g. Late in 2016, PB paid cash dividends of RM35,000.

h. For store fixtures, PB uses the straight-line depreciation method, over five years, with zero residual value.

Requirements:

Question 1. PB's income statement for the year ended 31 December 2016. Use the single-step format, with all revenues and all expenses listed together.

Question 2. PB's classified balance sheet at 31 December 2016.

Question 3. PB's statement of cash flows using the indirect method for the year ended 31 December 2016.