ZB Ltd’s sales for 2016 were K565,201 being 40% higher than those of 2015. In 2016 the cost of goods sold was 39% of sales (rounded to the nearest hundred). The later figure is higher than the 2015 cost of sales by 15% (rounded to the nearest hundred). In 2016 the other operating expenses were 20% of sales (rounded to the nearest hundred). The other operating expense of 2015 were K102, 800, being 10% long term debt.

In 2016 long-term loan was K300,000 with interest rate of 10% per annum. The finance cost for 2015 were K20,000, being 10% of long-term debt.

Tax was at 35% in both years to the nearest hundred. Dividends are always at 40% of the net profit after tax to the nearest hundred. Retained earnings brought forward at the beginning of 2015 was K316,735. Capital employed (as defined above) was K896,450.

Other information is as follows:

2016	2015
K	K
Non-current assets	1,143,210	781,490
Current assets	390,690	289,520
Current Liabilities	295,250	174,560
Owners’ Equity	428,529	345,000

Use the above information to prepare statements of income for 2015 and 2016 and the statements of financial position as at 31.12.2015 and 31.12.2016

Answer rating: 100% (QA)

Sheet6 Sheet7 Exit Full Screen F H 1 ZBs statement of financial Positi... View the full answer