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8.1.1 Lecture_15_Solution_POS_

8.1.1 Lecture_15_Solution_POS_ - Lecture 15 Solution(POS...

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Lecture 15 Solution (POS).doc Bison Ltd POS task (See Lecture 15 handout for question) Bison Ltd: Pro Forma Statement of Financial Performance for the year ended 31 August 2009: 31 August 2009 31 August 2010 Sales 500,000 550,000 Operating Expenses 343,750 378,125 Net Profit Before Tax 156,250 171,875 Tax (@ 20%) 31,250 34,375 Net Profit After Tax 125,000 137,500 Dividend payout ratio (@ 60%) 75,000 82,500 Change in Retained Earnings in statement of Financial Position, 31 August 2010: NPAT – DIVIDEND PAYOUT = 137,500 82,500 = 55,000 Bison Ltd: Statement of Financial Position as at 31 August 2010 (1) (2) First Approximation (3) Second Approximation 31 August 2009 (1) × 1.1 (AFN distributed) Cash 12,500 13,750 13,750 Accounts Receivable 112,500 123,750 123,750 Inventory 250,000 275,000 275,000 Total Current Assets 375,000 412,500 412,500 Net Fixed Assets 375,000 412,500 412,500 TOTAL ASSETS 750,000 825,000 825,000 Accounts Payable 50,000 55,000 55,000 Notes Payable 12,500 (a) 12,500 21250 Accrued Wages & Taxes 62,500 68750 68,750 Total Current Liabilities 125,000 136,250 145,000 Debentures 187,500 (a) 187,500 187,500 Ordinary Shares 62,500
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