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qa_attachment_1569987433731.jpgthis is finanCial accounting practice

problems.

qa_attachment_1569987433731.jpg

PART 2
20 marks
20
Sea Surf Campground Inc. is a public camping ground near Ocean National Park. It has
the following financial information.
Camping revenue
Cash
$283,000
Dividends Declared
$12,000
Equipment
19,000
245,000
124,000
Operating Expenses
Accounts Payable
Supplies
2,500
16,500
Bank loan payable
Common Shares, Jan. 1
30,000
Income Tax Expense
50,000
Common Shares issued
10,000
during year
15,000
18,000
Instructions
Retained earnings, Jan. 1
a) Prepare an income statement (5 marks) 5
b) Prepare a Statement of Changes in Equity (5 marks)
c) Prepare a Statement of Financial Position (10 marks)
PART 3
10 marks
Financial statement data for Chen Corporation is as follows:
Service revenue
$1,800,000
Operating expenses
1,458,000
Interest expense
10,000
Income Tax expense
85,000
Current assets
407,200
Non-current assets
532,000
Current liabilities
166,325
Non-current liabilities
108,500
Share price
$25
Weighted average number of common shares
76,000
Instructions
a) Calculate working capital. Comment on the relative liquidity. (2 marks)
b) Calculate the current ratio. Comment on the relative liquidity. (2 marks)
c) Calculate the Net Income. the basic earnings per share, and the price earnings ratio.
Assume that the Net Income you calculate equals the income available to common
shareholders. Comment on the relative profitability. (6 marks)
III
O

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