HD Dental Clinic

Income Statement
For the year ending December 31, 2021

Items Amount
Service Revenue 111,500
Less Expense
Salaries and wages enxpense 54,000
Depreciation expenses 8,000
Rent expenses 6,000
Utilities expenses 11,000
Total expense 79,000
Net Income 32,500

HD Dental Clinic
Statement of Retained Earnings
For the year ending December 31, 2021
Retained Earnings at 1/1/2021 -
Add: Net Income 32,500
Retained Earnings at 31/12/2021 32,500

HD Dental Clinic
Balance Sheet
As at December 31, 2021
ASSETS Amount
Current Assets
Cash 20,000
Medical Supplies 9,500
Prepaid Rent 30,000
Total Current Assets 59,500
Non-current Assets
Medical Equipment 99,000
Less: Accumulated
Depreciation-Medical (15,000)
Equipment
Total Non-current Assets 84,000
TOTAL ASSETS 143,500
LIABILITIES AND EQUITIES
Liabilities
Current Liabilities
Account Paybable 21,000
Total Liabilities 21,000
Equities
Hoang Duong's Capital 90,000
Retained Earnings 32,500
Total Equity 122,500
TOTAL LIABILITIES AND EQUITI 143,500
Notes Adjustments Debit Credit
$ $
a Rent expense 10,000
Prepaid Rent 10,000
b Supplies Expense 3,000
Medical Supplies 3,000
c Depreciation Expense 1,375
Accumulated Depreciaiton-Medical 1,375
Equipment
d Salaries Expense 2,000
Salaries Payable 2,000
e Utilities Expense 1,500
Account Payble 1,500
f Unearned Service Revenue 3,200
Revenue 3,200
21,075 21,075

Adjusted Trial Balance

Cash 22,000
Medical Supplies 12,000
Prepaid Rent 20,000
Medical Equipment 99,000
Accumulated Depreciation-Medical
16,375
Equipment
Account Payable 21,000
Hoang Duong's Capital 121,500
Unearned Service Revenue 1,800
Service Revenue 34,200
Owner' Withdrawals 20,000
Salaries and Wages Expenses 8,000
Rent Expense 10,000
Supplies Expense 3,000
Depreciation Expense 1,375
Salaries Payable 2,000
Utilities Expense 1,500
196,875 196,875
 Income Statement
Items Amounts
Service Revenue 34,200
Less Expenses
Salaries and Wages Expenses 8,000
Rent Expense 10,000
Supplies Expense 3,000
Depreciation Expense 1,375
Utilities Expense 1,500
Total Expenses 23,875
Net Income 10,325

Statement of Retained Earnings

For the month ending January 31, 2022
Retained Earnings at 1/1/2022
Add: Net Income 10,325
Less: Owner' Withdrawals 20,000
Retained Earnings at 31/1/2022 (9,675)

Balance Sheet
As at January 31, 2022
ASSETS Amount
Current Assets
Cash 22,000
Medical Supplies 12,000
Prepaid Rent 20,000
Total Current Assets 54,000
Non-current Assets
Medical Equipment 99,000
Less: Accumulated Depreciation- (16,375)
Medical Equipment
Total Non-current Assets 82,625
TOTAL ASSETS 136,625

LIABILITIES AND EQUITIES

Liabilities
Current Liabilities
 Account Payable 21,000
Salaries Payable 2,000
Unearned Service Revenue 1,800
Total Liabilities 24,800
Equities
Hoang Duong's Capital 121,500
Retained Earnings (9,675)
Total Equity 111,825
TOTAL LIABILITIES AND EQUITIES 136,625
Balance Sheet
 Income statement
for the year ended 31 December
2021 2020
$m. $m.
Revenue 146,000 160,000
Cost of sales 87,600 91,200
Gross profit 58,400 68,800
Selling and distribution expenses 17,520 17,600
Administrative expenses 7,300 6,400
Operating profit 33,580 44,800
Interest expense 1,900 400
Profit before taxation 31,680 44,400
Income tax expense 6,336 8,880
Net profit 25,344 35,520

Total expense 33,056 33,280

Net income 112,944 126,720

2320

Calculate and present the following ratios for the year 2021
Unit
a)    Total assets turnover 1.549072 times
b)    Average inventory turnover period 66.66667 days
c)     Average settlement period for trade receivables 6.875 days
d)    Average settlement period for trade payables 27.08333 days
e)    Net profit margin 77.3589 %
f)      Gross profit margin 40 %
g)    ROA
h)    ROE
i)       Current ratio
j)       Quick ratio
k)     Debt-to-equity ratio
l)       Interest cover ratio
 Statement of financial position
as at 31 December
2021 2020
$m. $m.
ASSETS
Non-current assets
Land and buildings 40,000 32,000
Equipment 34,000 35,000
74,000 67,000
Current assets
Inventories 20,000 12,000
Trade receivables 3,000 2,500
Cash 4,000 6,000
27,000 20,500
Total assets 101,000 87,500

EQUITY AND LIABILITIES

Equity
Share capital 4,000 4,000
Additional paid-in capital 35,000 35,000
Retained earnings 10,000 11,500
Total equity 49,000 50,500

Non-current liabilities
Long-term borrowings 32,000 25,000
Current liabilities
Trade payables 8,000 5,000
Short-term borrowings 12,000 7,000
20,000 12,000
Total equity and liabilities 101,000 87,500