Barakah CompanyBalance Sheet as at 31st December 2019Financed by:Fixed Assets (net after depreciation)2$$Paid-up:Share CapitalRetained EarningsReserves350,500200,500150,00050,000Land & Buildings600,000155,50075,000830,500EquipmentVehiclesFixtures & FittingsLong Term Liabilities25,000751,000Current Assets125,000Accounts Receivable 215,00010,000110,00020,0001,231,000InventoryCurrentOther payablesTrade creditorsLiabilities100,000245,500PrepaymentsCash at BankCash in HandAccrued expense30.000375,5001,231.000Additional Information:i)Work-in-Progress is one sixth of the total Inventory.Prepayments is related to rental of buildings.ii)ii)Bad Debts is 5% for the year.iv)Non Muslim ownership is at 20%.Required: Determine the zakat base and due for the company using:(a) Net Current Assets method; and(b) Net Invested Fund Method.

Zakat Zakat is custom which was followed by the Muslim Community as a charity which are paid to…

Answered: Additional Information: i)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Clayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…
This is the financial position of Hospital AMIH, Inc. regarding the repayment of its debts. These are the most relevant data of its financial statements: Total revenues $ 245,000 Total expenses $ 145,000 Depreciation $ 10,000 Changes in receivable accounts +$ 50,000 Changes in inventory ($ 20,000) Changes in accounts payable ($ 25,000) Total current liabilities $ 30,000 Total long-term debt $ 45,000 cash flow (total margin + depreciation expense) + interest expense/principal payment + interest expense Calculate the operating cash flow.
Marr Company reported rental revenue of P2,210,000 in its cash basis income tax return for the year ended November 30, 2010 . Additional information is as follows: Rent receivable – November 30, 2010 1,060,000; Rent receivable – November 30, 2009 800,000; Under the accrual basis, Marr should report rental revenue of Choices; 1,920,000 1,950,000 2,440,000 2,470,000
State the accounting entries required if a business made sales on credit of $10,000, on which it must account for sales tax at the rate of 20%.
ABD Company pays a weekly payroll of $285,000 that includes federal taxes withheld of $38,100, FICA taxes withheld of $23,670, and 401(k) withholdings of $27,000. (Although not required, preparing journal entries may help you answer questions 1A- What is the effect of assets from the transaction(s)? TWO ANSWERS REQUIRED - (Increase or decrease and $ how much) 1B- What is the effect of liabilities from the transaction(s)? TWO ANSWERS REQUIRED - (Increase or decrease and $ how much)
The company provided the following financial information: Assets -7,250,800 Tax Rate - 35% BEP- 14% ROA - 4% Compute the TIE ratio. Use 4 decimal places on your final answer
Based on the following information, compute the (1) current ratio and (2) working capital. (Round current ratio to 1 decimal place, e.g. 52.5.) Current assets $144,320 Total assets 738,000 Current liabilities 65,600 Total liabilities 410,000
Using the following Balance Sheet summary information, calculate for the two companies presented:working capitalcurrent ratio Company L and Company M, respectively: Current assets $124,680, $180,550. Current liabilities 63,250, 153,250.
Jake Bake Shop has total liabilities amounting to $35,000. Total equity had an ending balance of $42,000. What percentage of the bake shop's asset is financed by the liabilities?
26 )
i. Using all relevant cells calculate the income tax expenses for each year. ii. . Using the correct function or formula calculate the net income.
A. What is the combined net income? B. What is the balance of the unrealized gain account?

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