Having gone through the principles II class, imagine you are an intern at Floro agro florists and its end year. The Warehouse Manager is overwhelmed with work and realizes that you can just be the perfect person to help him with inventory related issues after he realizes a glitch in some year’s records. The information for the years in question has been provided as follows;

2018 2019 2020

Current Assets 1,000 1,250 1,750

Non-Current Assets 5,000 6,250 8,750

Total Assets 6,000 7,500 10,500

Long term Liabilities 2,000 2,500 3,500

Revenue 1,000 1,250 1,750

Cost of Sales 40% on cost for all the Years

Assume that ending Inventory was overstated by K1, 500 in 2018 and Understated by K10, 000 ends of 2019.

Required

a. Calculate the Cost of goods sold for the years 2018, 2019, and 2020 (6 Marks)

b. Calculate the Owners Equity value for the years 2018, 2019 and 2020 (3 Marks)

c. Calculate the correct values for the below listed items in 2018 and 2019 indicating the effect with an explanation. (21 Marks)

i. Current Assets

ii. Non-current Assets

iii. Total Assets

iv. Long term Liabilities

v. Owners Equity

vi. Revenue

vii. Cost of sales

viii. Gross Profit