Financial Accounting | SoSe 2024
Prof. Dr. Christoph Sextroh
Financial Accounting
Tutorial 4
Preparing financial statements
Task 1: Income Statement
Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2022.
Expenses for 2022 were cost of goods sold $1,450,000, administrative expenses $212,000,
selling expenses $280,000, and interest expense $45,000. Brisky’s tax rate is 30%. The company
had 100,000 shares authorized and 70,000 shares issued and outstanding during 2022.
Prepare an income statement for the year ended December 31, 2022.
Task 2: Income Statements / Retained Earnings
Presented below is information related to Tao Ltd. for the year 2022 (amounts in thousands).
Prepare an income statement for 2022. Assume that 60,000 ordinary shares are outstanding.
Net Sales HK$1,200,000 Write-off of inventory due to HK$ 80,000
obsolescence
Cost of goods sold 780,000 Depreciation expense omitted by 40,000
accident in 2021
Selling expenses 65,000 Interest expense 50,000
Administrative 48,000 Cash dividends declared 45,000
expenses
Dividend revenue 20,000 Retained earnings at December 31, 2021 980,000
Interest revenue 7,000 Effective tax rate of 34% on all items
Task 3: Statement of Financial Positions
Below is the adjusted trial balance of Abbey plc at December 31, 2022.
Additional information:
- All revenues and expenses of the period are considered.
- No dividends were declared during 2022.
Prepare a classified statement of financial position as of December 31, 2022.
1
Financial Accounting | SoSe 2024
Prof. Dr. Christoph Sextroh
Abbey plc
Adjusted Trial Balance
Debit Credit
Cash €?
Supplies 1,200
Prepaid Insurance 1,000
Equipment 48,000
Accumulated Depreciation – Equipment €9,000
Trademarks 950
Accounts Payable 10,000
Salaries and Wages Payable 500
Unearned Service Revenue 2,000
Bonds Payable (due 2025) 9,000
Share Capital – Ordinary 10,000
Retained Earnings 20,000
Service Revenue 10,000
Salaries and Wages Expense 9,000
Insurance Expense 1,400
Rent Expense 1,200
Interest Expense 900
Total €? €?
Task 4: Cash Flow Statement
The comparative statements of financial position of Menachem NV at the beginning and end of
the year 2022 appear below. Additional information: Net income of €34,000 was reported, and
dividends of €23,000 were paid in 2022. New equipment was purchased and none was sold.
Prepare a statement of cash flows for the year 2022.
Menachem NV
Statements of Financial Position
Assets Dec. 31, 2022 Jan. 1, 2022 Inc./Dec
Equipment € 37,000 € 22,000 €15,000 Inc.
Less: Accumulated depreciation - equipment (17,000) (11,000) 6,000 Inc.
Accounts receivable 106,000 88,000 18,000 Inc
Cash 22,000 13,000 9,000 Inc
Total €148,000 €112,000
Equity and Liabilities
Share capital – ordinary €100,000 €80,000 20,000 Inc
Retained earnings 28,000 17,000 11,000 Inc
Accounts payable 20,000 15,000 5,000 Inc
Total €148,000 €112,000
2
Financial Accounting | SoSe 2024
Prof. Dr. Christoph Sextroh
Task 5: Cash Flow Statement
Given the balance sheets and the income statements of Success corp., please derive the cash
flow statement for 2015. Assume that interest expenses belong to the operating sphere of the
company.
Balance Sheet 2014 2015
Non-current assets
Property, plant and equipment 18,450 16,394
Intangible assets 7,241 7,205
25,691 23,599
Current assets
Cash and cash equivalents 1,080 2,547
Accounts receivable 1,077 2,070
Raw material inventory 244 230
Finished goods inventory 1,108 1,354
3,509 6,201
Total Assets 29,200 29,800
Owners‘ equity
Common stock 3,980 3,980
Profit and retained earnings 4,300 2,430
8,280 6,410
Non-current financial liabilities 13,787 13,595
Current liabilites
Accounts payable 3,474 4,300
Current provisions 1354 2,518
Current financial liabilities 2,305 2,977
7,133 9,795
Total equity and liabilities 29,200 29,800
Income Statement 2015
Sales 35,400
Material expenses 18,200
Wage & salary expenses 14,080
External services expenses 840
Other administrative expenses 1,435
Depreciation PP & E 1,859
Amortization intangible assets 88
Earnings before interest and taxes -1,102
Interest expense 768
Net income -1,870
