Reference no: EM132468164
Johnston Enterprises
Statement of Financial Position and Income Statement Data
December 31, December 31,
2019 2018
Property, Plant, and Equipment HK$1,241,000 HK$ 1,122,000
Less: Accumulated Depreciation (477,000) (442,000)
764,000 680,000
Current Assets:
Inventory 391,000 340,000
Accounts Receivable 238,000 306,000
Cash 154,000 119,000
Total Current Assets 783,000 765,000
Total Assets HK$1,547,000 HK$1,445,000
Equity:
Share Capital-Ordinary HK$ 510,000 HK$ 467,500
Retained Earnings 374,000 340,000
Total Equity 884,000 807,500
Non-Current Liabilities:
Bonds Payable 340,000 391,000
Current Liabilities:
Accounts Payable 187,000 102,000
Notes Payable 51,000 68,000
Income Taxes Payable 85,000 76,500
Total Current Liabilities 323,000 246,500
Total Liabilities 663,000 637,500
Total Liabilities & Equity HK$1,547,000 HK$1,445,000
Sales Revenue HK$1,615,000 HK$1,513,000
Less Cost of Goods Sold 731,000 731,000
Gross Profit 884,000 782,000
Expenses:
Depreciation Expense 154,000 136,000
Salaries and Wages Expense 391,000 357,000
Interest Expense 34,000 34,000
Loss on Sale of Equipment 17,000 0
Income Before Taxes 288,000 255,000
Less Income Tax Expense 119,000 102,000
Net Income HK$ 169,000 HK$ 153,000
Additional Information:
- During the year, Johnston sold equipment with an original cost of HK$153,000 and accumulated depreciation of HK$119,000 and purchased new equipment for HK$272,000.
Question 1: Prepare The Statement of cash flows for the year ending December 31, 2019.