Presented below is information related to Al-Arab Company. Its capital structure consists of 80,000ordinary shares. At December 31, 2020 an analysis of the accounts and discussions with companyofficials revealed the following information:Sales Revenues2,100,000Purchases1,284,000Purchase discounts36,000Cash120,000Loss on discontinued operations (net of tax)Selling expensesShare capital56,000256,000400,000Accounts receivable180,000Land740,000Accumulated depreciation360,000Dividend revenue16,000Inventory, January 1, 2020Inventory, December 31, 2020Unearned service revenue304,000250,0008,800Accrued interest payable2,000Dividends declared58,000Patents200,000Retained earnings, January 1, 2020Interest expenseGeneral and administrative expensesAccounts payable580,00034,000300,000120,000Allowance for doubtful accounts10,000Notes payable (maturity 7/1/25)Machinery and equipmentMaterials and supplies400,000900,00080,000 Note: The amount of income taxes was ¥91,200, including the tax effect of the discontinued operationsloss which amounted to ¥24,000.Instructions:Prepare an income statement and retained earnings statement for 2020 for Al-Arab Company thatis presented in accordance with IFRS (including format and terminology). Then answer thefollowing questions:1- The amount of cost of goods sold for 2020 equals?2- The amount of gross profit for 2020 equals?3- The amount of income from operations for 2020 equals?4- The amount of income tax for 2020 equals?5- The amount of income from continuing operations for 2020 equals?6- The amount of net income for 2020 equals?7- The amount of retained earnings on 31/12/2020 equals?

The question is related to the Ratio Analysis and Financial Statements for the year ended December…

Presented below is information related to Al-Arab Company. Its capital structure consists of 80,000 ordinary shares. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales Revenues 2,100,000 Purchases 1,284,000 Purchase discounts 36,000 Cash 120,000 Loss on discontinued operations (net of tax) Selling expenses Share capital 56,000 256,000 400,000 Accounts receivable 180,000 Land 740,000 Accumulated depreciation Dividend revenue 360,000 16,000 Inventory, January 1, 2020 Inventory, December 31, 2020 Unearned service revenue 304,000 250,000 8,800 Accrued interest payable Dividends declared 2,000 58,000 Patents 200,000 Retained earnings, January 1, 2020 Interest expense General and administrative expenses 580,000 34,000 300,000 Accounts payable 120,000 Allowance for doubtful accounts 10,000 Notes payable (maturity 7/1/25) Machinery and equipment Materials and supplies 400,000 900,000 80,000

Presented below is information related to Al-Arab Company. Its capital structure consists of 80,000 ordinary shares. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales Revenues 2,100,000 Purchases 1,284,000 Purchase discounts 36,000 Cash 120,000 Loss on discontinued operations (net of tax) Selling expenses Share capital 56,000 256,000 400,000 Accounts receivable 180,000 Land 740,000 Accumulated depreciation Dividend revenue 360,000 16,000 Inventory, January 1, 2020 Inventory, December 31, 2020 Unearned service revenue 304,000 250,000 8,800 Accrued interest payable Dividends declared 2,000 58,000 Patents 200,000 Retained earnings, January 1, 2020 Interest expense General and administrative expenses 580,000 34,000 300,000 Accounts payable 120,000 Allowance for doubtful accounts 10,000 Notes payable (maturity 7/1/25) Machinery and equipment Materials and supplies 400,000 900,000 80,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1BCRQ

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