Financial Statement Analysis: A Comprehensive Report

Tema 2: Financial Statement Analysis

Section 1: Merchandise and Bank Transactions

Merchandise and VAT

• Merchandise: $2,500,000
• VAT Credit: $475,000
• Total: $2,975,000 (1.5 points)

Bank and Receivables

• Bank: $2,499,000 ( ($4,200,000 + $798,000) / 2 )
• Accounts Receivable: $2,648,940
• Cost of Sales: $3,290,000 ( ($261,800 / 1.19) x 7 + $250,000 x 7 ) (3 points)

Revenue and Expenses

• Merchandise: $3,290,000
• Revenue from Sales: $4,200,000 ($300,000 x 14)
• VAT Debit: $798,000 ($4,200,000 x 0.19)
• Interest Earned: $149,940 ($2,499,000 x 0.02 x 3)

Section 2: Additional Transactions

Merchandise and Sales

• Merchandise: $220,000
• Revenue from Sales: $300,000
• VAT Debit: $57,000
• Total: $357,000 (2 points)
• Cost of Sales: $220,000

Repair Expenses

• Repair Expense: $10,000 (1.5 points)
• Units: 10,000 boxes

Consultancy and Bank Transactions

• Advance Consultancies: $100,000
• Bank: $100,000 (1 point)
• Marketing Consultancy: $300,000
• Advance Consultancies: $100,000 (2 points)
• Fund (Bank): $170,000
• Retained Impto Payable: $30,000 ($300,000 x 0.1)

Section 3: VAT Settlement

VAT Calculation

• Settlement Credit VAT: VAT Credit - VAT Debit = $475,000 - ($798,000 + $57,000) = -$370,000 (1 point)
• VAT Debit: $741,000
• VAT Credit: $475,000
• VAT Payable: $266,000 (1 point)

VAT Payment

• VAT Payable: $266,000
• Bank: $266,000 (0.5 points)

English Portal: Financial Data

Section 1: Interest Calculation

Interest Expense

• Interest: $30,000
• Interest Payable: $30,000 (1 point)

Section 2: Depreciation Calculation

Depreciation Calculation

• Cost (CH): $100,000,000
• Useful Life: 50 years
• Salvage Value (VR): $20,000,000
• Depreciable Base: $80,000,000 ($100,000,000 - $20,000,000)
• N: 1,275 (50 x (51 / 2))
• Annual Depreciation: $3,074,510 ($80,000,000 x (49 / 1275)) (2 points)

Depreciation Entry

• Depreciation Expense: $3,074,510
• Accumulated Depreciation: $3,074,510 (1 point)

Section 3: Income Tax Calculation

Adjusted Utility and Income Tax

• Adjusted Utility: $2,095,490 ($5,200,000 - $30,000 - $3,074,510) (1 point)
• Income Tax: $356,233 ($2,095,490 x 0.17) (0.5 points)

Income Tax Entry

• Income Taxes: $356,233 (1 point)
• Income Tax Provision: $356,233

Section 4: Income Tax Adjustments and Payments

Income Tax Adjustments

• Provision for Income Tax: $356,233
• Actual Utility: $2,500,000
• Prior Period Adjustment (PPM): $370,000
• Final Income Tax: $425,000 ($2,500,000 x 0.17)
• Adjustment 1: $68,767 ($425,000 - $356,233) (1 point)
• Adjustment 2: $55,000 ($425,000 - $370,000) (1 point)

Income Tax Entries

• Income Tax Expense: $68,767
• Income Tax Provision: $356,233 (1.5 points)
• PPM: $370,000
• Income Tax Payable: $55,000

Income Tax Payment

• Income Tax Payable: $55,000
• Bank: $55,000 (0.5 points)

Section 5: Profit and Dividend Distribution

Profit and Dividends

• 2022 After-Tax Profit: $2,075,000 ($2,500,000 - $425,000) (0.5 points)
• Dividends: $622,500 ($2,075,000 x 0.3) (0.5 points)

Dividend Entry

• Retained Earnings: $622,500 (1 point)
• Dividends Payable: $622,500