Question $4$

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Mark $8\mathrm{.}00$ out of $52\mathrm{.}00$

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Below is a list of accounts and balances for FlipFlop Inc. for the year ending December $31,2023.$ All balances are in thousands of dollars. FlipFlop Inc. follows IFRS. Assume a tax rate of $25\%.$ Exclude the presentation of earnings per share for this question.

Account Title Balance

Accounts Payable $$8,400$

Accounts Receivable $$13,400$

Accumulated Depreciation $$1,300$

Advertising Expense $$1,200$

Cash $$20,300$

Cash Dividends $$4,200$

Common Shares $$14,000$

Cost of Goods Sold $$21,120$

Depreciation Expense$-$Office Equipment $$60$

Depreciation Expense$-$Store Equipment $$700$

Gain on Foreign Currency Translation Adjustments $$140$

Gain on Sale of Discontinued Operations $$1,800$

Income from Operating Discontinued Operations $$8,000$

Interest Expense $$1,100$

Merchandise Inventory $$17,700$

Miscellaneous Administrative Expenses $$430$

Notes Payable $$22,000$

Office Salaries Expense $$1,600$

Prepaid Insurance $$1,800$

Property, Plant and Equipment $$25,800$

Rent Expense$-$Office $$510$

Rent Expense$-$Retail $$1,060$

Retained Earnings $($beginning balance$)$ $$13,115$

Sales Salaries Expense $$2,000$

Sales Discounts $$1,200$

Sales Returns and Allowances $$980$

Sales Revenue $$52,800$

Unearned Revenue $$1,300$

Notes:

Unlimited common shares are authorized and $2,470$ have been issued and are currently outstanding.

The notes payable is payable over $5$ years and $$4,400$ will be paid by December $31,2024.$

Do not enter dollar signs or commas in the input boxes.

Round all answers to the nearest whole number.

Do not use the negative sign for any values.

a$)$ Prepare a statement of comprehensive income by function for the year ended December $31,2023.$

FlipFlop Inc.

Statement of Comprehensive Income

For the Year Ended December $31,2023$

Sales Revenue $($net$)$ Answer

$50620$

Cost of Goods Sold Answer

$21120$

Gross Profit Answer

$29500$

Selling Expenses Answer

$4960$

Administrative Expenses Answer

$2600$

Operating Profit Answer

$21940$

Finance Costs Answer

$1100$

Profit before Income Tax Answer

$20840$

Income Tax Expense Answer

Profit for the Year from Continuing Operations Answer

Profit for the Year from Discontinued Operations Answer

Profit for the Year Answer

Other Comprehensive Income, Net of Tax

Gain on Foreign Currency Translation Adjustments $($net of tax$)$ Answer

Total Comprehensive Income Answer

b$)$ Prepare a statement of changed in equity for the year ended December $31,2023.$ There was no opening balance in the accumulated other income account and FlipFlop Inc. did not issue any new common shares in the fiscal year ended December $31,2023.$

FlipFlop Inc.

Statement of Changed in Equity

For the Year Ended December $31,2023$

Common Shares Retained Earnings Reserves Total Equity

Opening Balance Answer

Answer

Answer

Profit for the Year$/$Net Income Answer

Answer

Other Comprehensive Income

Foreign Currency Translation Adjustments Answer

Answer

Total Comprehensive Income Answer

Answer

Answer

Transactions with Owners

Dividends on Common Shares Answer

Answer

Total Transactions with Owners Answer

Answer

Closing Balance Answer

Answer

Answer

Answer

c$)$ Prepare a statement of financial position as at December $31,2023.$

FlipFlop Inc.

Statement of Financial Position

As at December $31,2023$

Assets

Long$-$Term Assets

Property, Plant and Equipment $($net$)$ Answer

Total Long$-$Term Assets

Current Assets

Prepaid Insurance Answer

Merchandise Inventory Answer

Accounts Receivable Answer

Cash Answer

Total Current Assets Answer

Total Assets Answer

Equity Attributable to Owners

Common Shares, unlimited authorized,Answer

issued Answer

Retained Earnings Answer

Reserves Answer

Total Equity Attributable to Owners Answer

Liabilities

Long$-$Term Liabilities

Notes Payable, Long$-$Term Portion Answer

Total Long$-$Term Liabilities Answer

Current Liabilities

Accounts Payable Answer

Unearned Revenue Answer

Notes Payable, Current Portion Answer

Total Current Liabilities Answer

Total Liabilities Answer

Total Equity and Liabilities Answer