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General Accounting Discussions: Need help rookie in accounting

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    • CommentAuthorMoises
    • CommentTimeMay 7th 2007
     
    here the question.

    1. study the following financial year accounts of Brakers Ltd and answer the folowing questions.

    items on the income statement on 28 february 1985

    Admnistration and sales expense 50 000
    interest paid 7 500
    Gross income 157 500
    income before tax 100 000
    Dividend on preference shares 15 000
    Dividend on common shares 30 000
    Net sales 456 000
    Tax 45‰



    1. Draw up income statement and show cost of sales, trade income the enterprise income, the nett income assignable to common shareholders and the undivided income for the year and the undivided income for the year and the undivided income at the beginning of the year.

    2. Draw up a balance sheet , where assets are properly classified.Calculate separetely the fixed, the floating assets, the nett floating assets, the capital available on indefinite long term and on definite long term, outside capital,own capital and short term capital.


    Thank you for your time and help

    PLEASE SEND ANSWERS TO MY EMAIL ADRESS hidinwa@yahoo.com
    • CommentAuthorabril
    • CommentTimeMay 8th 2007
     
    hi :) the problem is confusing. i can only answer the Income statement.

    Net sales: 456,000
    Cost of sales: - 298,500
    Gross Income 157,500
    less: operating expanses:
    admin. and selling expense - 50,000
    total: 107,500
    less:financial expense
    interest paid - 7,500
    income before tax: 100,000
    less tax (45%) 45,000
    NET INCOME 55,000

    the problem did not show the interest in preference and common shares so what i did is i get the ratio:
    ratio net income: 55,000
    preference 15,000 15/45 18,333
    common 30,000 30/45 36,667
    total 45,000

    i have no idea what is a flaoting asset....

    if ever you get the correct answer to the problem, mind if you send it to my email? pls?

    aprilles0ler@hotmail.com

    tnx.
    Thankful People: Moises
    • CommentAuthorabril
    • CommentTimeMay 9th 2007
     
    thank you very much for that information :)

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