Case study 2

Xero Ltd reported a profit before tax for the year to 30 June 2022 of $750 000. The company's statements of financial position include assets and liabilities as follows:

Accounts receivable Allowance for doubtful debts Plant at cost Accumulated depreciation Interest receivable Provision for long-service leave Deferred tax asset Deferred tax liability 2022 S 245 000 (20 000) 600 000 (190 000) 10 000 48 000 ? ? 2021 S 200 000 (10 000) 600 000 (120 000) 20 000 62 000 21 600 60 000