Question: During 2018, SuperPlus Ltd discovered that certain items valued at $4.2m had been included in inventories at 31 December 2017, and in fact these

During 2018, SuperPlus Ltd discovered that certain items valued at $4.2m had

During 2018, SuperPlus Ltd discovered that certain items valued at $4.2m had been included in inventories at 31 December 2017, and in fact these items were sold before the year end. The draft figures (extract) below were provided for you: 2017 2018 S'000 S'000 Sales Cost of goods sold Profit before taxation 47,400 (34,570) 12,830 (3,880) 8,950 67,200 (55,800) 11,400 (3,400) 8,000 Income taxes Net profit Other relevant information extracted from the accounting records: 1. Retained earnings at 1 January 2017 were $13m 2. The cost of goods sold for 2017 includes the $4.2m error in opening inventory 3. The income tax rate was 30% for 2017 and 2018 Required: i. Prepare a detailed income statement for 2018 with 2017 comparative. ii. Calculate the retained earnings for both years (3 marks) (2 marks)

Step by Step Solution

★★★★★

3.36 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Income statement for 2018 and 2017 Amount in 000 2018 2017 Sales 67200 47400 Cost of goods sold 5160... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

2. Suppose the price of wheat increases in the world market. Explain the effect of this change on the current account and the exchange rate of a. a wheat exporting country. (5 marks) b. a wheat...

At 30 September 2003, Bowtock had included in its draft statement of financial position inventory $250 000 valued at cost. Up to 5 November 2003, Bowtock had sold $100 000 of this inventory for $150...

Consider a consumer named Ahmed who buys only two items, shawarma and coffee. If the total weekly income of Ahmed is OMR 36 and the price of shawarma is 2 OMR while price of coffee is 1.2 OMR. if he...

Depreciation?SYD, Act., SL, and DDB the following data relate to the Plant Assets account of Eshkol, Inc. at December 31, 2010. *In the year an asset is purchased, Eshkol, Inc. does not record any...

Income statement data for Grendel Images Company for the years ended December 31, 2010 and 2009 are as follows: (a) Prepare a comparative income statement with horizontal analysis, indicating the...

Analyzing Gross Profit Percentage on the Basis of an Income Statement The following summarized data were provided by the records of Slate, Incorporated, for the year ended December 31, 2012:...

(Income Statement, EPS) Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2004. (a) Compute net income for 2004. (b) Prepare a partial income statement beginning...

Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: The North Store has...

Preparing a balance sheet and an income statement The accounting records of Callen Incorporated reveal the following for 2007 and 2008. Callen applies U.S. GAAP , and reports its results in thousands...

Inferring Year-End Adjustments, Computing Earnings per Share and Net Profit Margin, and Recording Closing Entries Ramirez Company is completing the information processing cycle at its fiscal...

Security x has expected return of 9% and standard deviation of 8%.Security Y has expected return of 14% and standard deviation of 12%.The two securities have a correlation coefficient of-1.0...

What are the four major sources of market failure? Explain briefly why each prevents the competitive market from operating efficiently.

Determine the infinite l i m i t . lim x 0 + ( 7 x - l n ( x ) ) -

A consumer analyst collected the following data on the screen sizes of popular LCD televisions sold recently at a large retailer: Manufacturer Screen Price Sharp 47 $1,030.50 Samsung 45 1,165.50...

The solution of the first- order differential equation dy 2ry 92 + (2y + +1) = 0, y (0) = -3 is y? + (a2 + 1) y 3.x 3 = 00 y? + (2 + 1) y 3.x 6 = 0 y? + (22 + 1) y 3x2 +3 = 0 y? + (22 + 1) y ...

The following bar chart shows the number of customers using various models of washing machines. Identify the mode(s) for this dataset. Select all that apply. Frequency Distribution of Customers Using...

Describe the functions that deviant behaviour performs for society

Bioremediation was selected to clean up 1000 m 3 soil contaminated with 1000 mg/kg n-nonane (C 9 H 20 ), 1000 mg/kg toluene (C 7 H 8 ), and 2000 mg/kg benzene 1,2-diol (C 6 H 6 O 2 ). The soil bulk...

Select all that apply Which sets equal the set of positive integers not exceeding 100? Multiple select question. {100, 99, 98, 97, ..., 1} {1, 1, 2, 2, 3, 3, ..., 99, 99, 100, 100} {1, 1, 2, 2, ...,...

A. Consumer Plus Ltd is a supermarket and is facing litigations regarding a defective product sold to a customer. The company was told by its lawyers that is it likely to have to pay $100,000 in...

Question 2 A. Consumer Plus Ltd is a supermarket and is facing litigations regarding a defective product sold to a customer. The company was told by its lawyers that is it likely to have to pay...

B. During 2018, SuperPlus Ltd discovered that certain items valued at $4.2m had been included in inventories at 31 December 2017, and in fact these items were sold before the year end. The draft...

b) During 2018, Ekua Donkor Ltd discovered that certain items had been included in inventory at 31 December 2017, valued at GH 4.2m, which had in fact been sold before the year end. The following...

Anchor Ltd finalised their financial statements for the year ended 31 March 2018 and authorised them for issue on 14 July 2018. The new managing director, who started in August of 2018, is unsure...