Course Title: International Business Finance

Assignment
Summer Semester- 2020
(Main Campus)

Student Name : ABUL ALA DANIYAL

Student ID:- BBA(MIS)/3-15/M02035
Instructor Name: Miss Nadia
Exam Date: May 09 , 2020
Answer #1

Saleem
Income Statement for Dec 31, 2012
sales revenue 240000
less: sales return -900
net sales revenue 239100
commission income 2500
total revenue 241600
cost of goods sold -25100
gross profit 216500
less: operating expenses:
salaries expense 8000
advertising expenses 3000
miscellaneous expenses 2000
office supplies expenses 1000
carriage outward 200
depreciation 2656
total operating expenses -16856
EBIT 199644
less:interest expenses -500
add:interest income 400
EBT 199544
less:tax (20%) -39909

EAT 159635

Page 1 of 8
Saleem
Balance Sheet as of Dec 31, 2012
Amoun
Liabilities t Assets Amount
current liabilities current assets
a/c payable 5500 cash 105000
bank over draft 7500 a/c receivable 20000
notes payable 5000 inventory 7000
tax payable 39909 prepaid rent 6000
commission unearned 800 total current assets 138000
13280
total current liabilities 58709 equipment 0
long term loan 10000 dep -2656 130144
total liabilities 68709
stockholders equity
capital 39800
profit 159635
total liabilities and stockholder’s
equity 268144 total assets 268144

Page 2 of 8
 Answer #2

income
statement
particulars amount
revenue
sales 575000
minus return 12000 563000
interest income 27000
total   59000
expenses
purchases (net) 268700
changes in inventory 17200
27800-45000
marketing
expense 12500
other expense 6000
office supplies 3500
transportation
in 22000
salaries
expense 65000
175000 x
bad debts 5% 8750
depreciation 22500
ebit   198250

interest
expense 16000
ebt 182250
tax @ 2 % 2645
eat   178605

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 balance sheet
Asset
non current non current
asset liability
office
equipment 320500 long term loan 50000
current liability
current assets account payable 35000
cash 45000 short term loan 55000
account 16625
receivable 0 bills payable 22700
prepaid advising 8500 tax payable 3645 116345
inventory 45000 264750 total 567250
total 567250

liabilities and capital

22230
capital 0
17860
profit 5 400905

Page 4 of 8
 Answer #3

AUSTIN SOUND SERENO CENTER INC.

Worksheet for Adjusted Trial Balance

TITLE OF CREDI
ACCOUNT DEBIT T DEBIT CREDIT DEBIT CREDIT
Cash 110,350 110,350 -
Account
receivable 54,600 54,600 -
Note receivable 8,000 8,000 -
Interest
receivable - - -
Inventory-
opening 40,500 42,000 40,500 82,500 40,500
Supplies 650 650 -
Prepaid
insurances 1,200 1,200 -
Furniture and
Fixture 183,200 183,200 -
Accumulated
depreciation -
furniture 2,400 600 - 3,000
Account payable 47,000 - 47,000
Note payable
(long term) 12,600 - 12,600
Capital - Frank 100,000 1,500 - 101,500
Sales revenue 338,000 - 338,000
Sales discount 1,400 1,400 -
Sales return and
allowance 2,000 2,000 -
Interest revenue 600 - 600
Purchases 89,300 89,300 -
Purchases
discount 3,000 - 3,000

Page 5 of 8
Purchases return
and allowances 1,200 - 1,200
Freight in 5,200 5,200 -
Rent expense 8,400 8,400 -
Depreciation 600 600 -
504,800 504,800 42,600 42,600 547,400 547,400

AUSTIN SOUND SERENO CENTER INC

Income Statement for year ended December 31,2012

CREDI
TITLE OF ACCOUNT DEBIT T
Sales revenue 338,000
Less:
Sales discount 1,400
Sales return and allowance 2,000
Net sales 334,600

Other income
Interest revenue 600
Total revenue 335,200

Opening Inventory 40,500

Add:
Purchases 89,300
Less:
Purchases discount 3,000
Purchases return and allowances 1,200
Freight in 5,200
Less: Closing Inventory 42,000
Cost of Goods Sold 88,800
Gross profit 246,400

Operating expenses
Rent expense 8,400
Depreciation 600

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 Total expenses 9,000
Earnings before interest and tax 237,400
Tax @ 40% 94,960
Earnings after tax 142,440

AUSTIN SOUND SERENO CENTER INC

Balance Sheet

for the year ended December 31,2012

Current assets
Cash 110,350
Account receivable 54,600
Note receivable 8,000
Inventory 42,000
Supplies 650
Prepaid insurances 1,200
Total current assets 216,800

Non-current assets
Furniture and Fixture 183,200
Accumulated depreciation -
furniture 3,000
Total non-current assets 180,200
Total assets 397,000

Current liabilities
Account payable 47,000
Accrued tax expenses 94,960
Total current liabilities 141,960

Non-current liabilities
Note payable (long term) 12,600
Page 7 of 8
 Total liabilities 154,560

Owner's equity
Capital - Frank 100,000
Add: Profit for current year 142,440
Total owner's equity 242,440
Total liabilities owner's equity 397,000

Page 8 of 8