PROBLEM: The incomplete comparativefinancial statement data for XYZ Company are

Question

PROBLEM:

The incomplete comparativefinancial statement data for XYZ Company

are given below:

December31

ASSETS: 20082007

Rs.Rs.

• Cash 4,000 ?

• Accounts receivable 36,000 29,000

• Inventory ? 61,000

• Plant and equipment 210,000 180,000

• Accumulated depreciation (40,000) (30,000)

Total Assets 285,000?

LIABILITIES& STOCKHOLDER’S EQUITY:

• Accounts payable 45,000 39,000

• Common stock 90,000 ?

• Retain earnings ? 138,000

Total Liabilities& Stockholder’s equity ? 247,000

For 2008, the company reportednet income as follows:

XYZ Company

Income Statement

For the year ended31st December, 2008

Rs.

Sales 500,000

Less: Cost of goods sold?

Gross margin200,000

Less: Operating expenses?

Net Income 20,000

Required:

A. Find the amount of cash forthe year 2007

B. Calculate current ratio forthe year 2007

C. Find the amount ofinventory for the year 2008

D. Calculate the inventoryturnover ratio for the year 2008

E. Calculate the amount ofdividend declared and paid during the year

2008

F. Using the Indirect methodprepare a Statement of Cash Flow for the

year ended31st December 2008 by showing the followingactivities

separately:

1. Cash Flow From OperatingActivities

2. Cash Flow From InvestingActivities

3. Cash Flow From FinancingActivities

Note: There were no sale ofplant and equipment during the year.

Explanation / Answer

PROBLEM: The incomplete comparativefinancial statement data for XYZ Company are

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