2022 2021

ASSETS Historical Fraction Restated Historical Fraction Restated

Cash 80,000 80,000 60,000 140/120 70,000
AR 160,000 160,000 120,000 140/120 140,000
Allow. DA (40,000) (40,000) (20,000) 140/120 (23,333)
Inventory 200,000 140/125 224,000 160,000 140/120 203,636
Land 400,000 140/100 560,000 400,000 140/120 560,000
Building 2,000,000 140/100 2,800,000 2,000,000 140/120 2,800,000
Accum. Depreciation (800,000) 140/100 (1,120,000) (600,000) 140/120 (840,000)
Total Assets 2,664,000 2,910,303

LIABILITIES AND EQUITY

AP 80,000 80,000 188,000 140/120 219,333
Loan payable 400,000 400,000 320,000 140/120 373,333
Total Liabilities 480,000 592,667

Share capital 1,200,000 140/100 1,680,000 1,200,000 140/100 1,680,000

Retained earnings 320,000 504,000 412,000 637,636
Total 2,184,000 2,317,636

TOTAL LIAB & EQUITY 2,664,000 2,910,303

Historical Fraction Restated

Sales 1,600,000 140/125 1,792,000
Inventory 160,000 140/110 203,636
Purchases 1,200,000 140/125 1,344,000
Inventory end (200,000) 140/125 (224,000) (1,323,636)
Total Gross income 468,364

Depreciation exp (200,000) 140/100 (280,000)

Distribution cost (140,000) 140/125 (156,800)
Bad debt exp (20,000) (20,000)
Finance cost (40,000) 140/140 (40,000) 496,800
Total gain 28,436

Profit before tax 40,000 (196)

Income tax expense (12,000) 140/125 (13,440)
Total Profit (13,636)