Colleagues Co.

Statement of Financial Statements

December 31, 20X1

ASSETS Notes
Current assets:
Cash and cash equivalents 4 6,017,760
Trade and other receivables 5 2,980,000
Inventories 2,608,000
Current tax asset 30,146
Total current assets 11,635,906

Noncurrent assets:
Investment in FVOCI securities 1,600,000
Investment property 2,900,000
Property, plant and equipment 6 5,925,000
Intangible assets 7 870,000
Other noncurrent assets 8 1,660,000
Total noncurrent assets 12,955,000

TOTAL ASSETS 24,590,906

LIABILITIES AND EQUITY

Current liabilities:
Trade and other payables 9 2,850,000
Current portion of loans payable - net 10 400,000
Total current liabilities 3,250,000

Noncurrent liabilities:
Noncurrent portion of loans payable - net 11 1,600,000
Bonds payable - net 12 7,257,246
Total noncurrent liabilities 8,857,246

TOTAL LIABILTIES 12,107,246

Equity:
Ordinary share capital 6,000,000
Retained earnings 6,223,660
Other components of equity 260,000
TOTAL EQUITY 12,483,660

TOTAL LIABILITIES & EQUITY 24,590,906

 Colleagues Co.
Statement of Profit or Loss
For the Year Ended December 31, 20X1
NOTES
Sales 16,800,000
Cost of sales -7,200,000
Gross profit 9,600,000
Distribution costs 13 -2,424,000
Administrative expenses 14 -3,755,000
Finance costs -1,121,486
Unrealized gain on investment property 100,000
Profit before tax 2,399,514
Income tax expense -719,854
Profit for the year 1,679,660

Colleagues Co.
Statement of Comprehensive Income
For the Year Ended December 31, 20X1
NOTES
Profit for the year 1,679,660
Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:
Investment in equity securities 260,000
Items that may be reclassified subsequently to profit or loss: -
Other comprehensive income for the year, net of tax 260,000

TOTAL COMPREHENSIVE INCOME FOR THE YEAR. 1,939,660

Note 4: Cash and cash equivalents
This line item consists of the following:

Cash on hand 450,000

Cash in bank 3,867,760
Money market placements 1,700,000
Cash and cash equivalents 6,017,760

Note 5: Trade and other receivables

This line item consists of the following:

Accounts receivable 3,900,000

Allowance for bad debts -920,000
Trade and other receivables 2,980,000

Note 6: Property, plant and equipment

This line item consists of the following:

Land 1,600,000
Building 4,500,000
Accumulated depreciation - Bldg. -855,000
Equipment 1,400,000
Accumulated depreciation - Equipt. -720,000
Property, plant and equipment 5,925,000

Note 7: Intangible assets

This line item consists of the following:

Patent 900,000
Accumulated amortization -30,000
Intangible assets 870,000

Note 8: Other noncurrent assets

This line item consists of the following:

Cash surrender value 860,000

Bond sinking fund 800,000
Other noncurrent assets 1,660,000

Note 9: Trade and other payables

This line item consists of the following:

Accounts payable (890K + 200K adj.) 1,090,000

Interest payable 1,040,000
Accrued liabilities (360K + 360K adj.) 720,000
Trade and other payables 2,850,000

Note 10: Loans payable

This line item consists of the following:

Current portion (2M x 1/5) 400,000

Non-current portion (2M x 4/5) 1,600,000
Total loans payable 2,000,000

Note 11: Bonds payable - net

This line item consists of the following:

Bonds payable 8,000,000

Discount on bonds payable -742,754
Bonds payable - net 7,257,246

Note 12: Distribution costs

This line item consists of the following:

Freight out 870,000

Sales commissions 504,000
Salaries of sales personnel 870,000
Utilities expense (360K x 1/2) 180,000
Distribution costs 2,424,000

Note 13: Administrative expenses

This line item consists of the following:

Salaries of administrative personnel 2,820,000
Depreciation expense - Bldg. 405,000
Depreciation expense – Equip. 320,000
Amortization expense 30,000
Utilities expense (360K x 1/2) 180,000
Administrative expenses 3,755,000
 Inventories
Balance of Inventory 2300000
Purchases 200000
Cost Capitalized 108000
2608000