Item

Total revenue
Trade discount
Sales returns and allowances
Other operating income
Cost of goods sold
Distribution expense
Administrative expense
Research and development expense
Depreciation expense
Interest income
Dividend income
Financial expense
Unrealized gain on investments
Other non-operating expense
Income tax expense
Requirement: Prepare the Income Statement for XYZ Corporation for the Year Ended December 31, 202X.
 Value
1,200,000
15,000
7,500
25,000
65% of net sales revenue
95,000
140% of distribution expense
45,000
35,000
4,000
6,000
2,500
12,000
7,000
22% (assuming accounting profit equals tax profit)
e Income Statement for XYZ Corporation for the Year Ended December 31, 202X.
ABC Manufacturing Ltd. is a mid-sized company that specializes in producing and selling industrial equipment. The company h
Provided Financial Data:
Revenue from Sales: $1,200,000
Revenue from After-Sales Services: $250,000
Trade Discounts: $20,000
Sales Returns: $15,000
Cost of Goods Sold (COGS): $750,000 (includes direct materials, direct labor, and factory overheads)
Selling Expenses:
Advertising: $30,000
Sales Commissions: $25,000
Administrative Expenses:
Salaries: $120,000
Office Supplies: $10,000
Insurance: $5,000
Research and Development (R&D): $50,000
Depreciation:
Manufacturing Equipment: $40,000
Office Equipment: $5,000
Interest Income: $3,000
Financial Expense: $7,000
Gain on Sale of Old Equipment: $8,000
Income Tax Rate: 25%

Requirement: Prepare a detailed income statement for ABC Manufacturing Ltd., explaining each section and its implications o
d has diversified its operations into providing after-sales services. This case will explore the detailed income statement of ABC Manufactur
statement of ABC Manufacturing Ltd. for the fiscal year ending December 31, 202X.
Case Study: XYZ Enterprises Balance Sheet Preparation
Background: XYZ Enterprises is a mid-sized company that operates in the consumer goods industry. The company has experie
Provided Financial Data:
Accounts Payable: $30,000
Accounts Receivable (net of allowance for doubtful accounts): $60,000
Accrued Liabilities (due within one year): $10,000
Property, Plant, and Equipment (PPE): $330,000
Accumulated Depreciation: ($100,000)
Additional Paid-in Capital: $30,000
Cash and Cash Equivalents: $40,000
Common Stock: $150,000
Current Portion of Long-term Debt: $15,000
Deferred Tax Liabilities (due within 2 years): $50,000
Goodwill: $25,000
Inventory: $80,000
Long-term Debt: $100,000
Long-term Investments: $50,000
Marketable Securities: $15,000
Patents: $10,000
Pension Obligations (due within 3 years): $15,000
Prepaid Expenses: $5,000
Retained Earnings: $95,000
Short-term Notes Payable: $20,000
Requirement: Prepare a detailed balance sheet for XYZ Enterprises and provide explanations for the inclusion and cal
on-current items, including various equity components and liabilities.

Amount ($)

40,000
15,000
60,000
80,000
5,000
200,000

300,000
(100,000)
50,000
25,000
10,000
285,000
485,000

30,000
20,000
15,000
10,000
 75,000

100,000
20,000
15,000
135,000
210,000

150,000
30,000
95,000
275,000
485,000
Case Study: XYZ Enterprises Balance Sheet Preparation
Background: XYZ Enterprises is a mid-sized company that operates in the consumer goods industry. The compa
Provided Financial Data:
Accounts Payable: $30,000
Accounts Receivable (net of allowance for doubtful accounts): $60,000
Accrued Liabilities (Due within 1 year): $10,000
Accumulated Depreciation: ($100,000)
Additional Equity Component: $10,000 (e.g., Treasury Stock or Other Comprehensive Income)
Additional Paid-in Capital: $30,000
Cash and Cash Equivalents: $40,000
Common Stock: $150,000
Current Portion of Long-term Debt: $15,000
Deferred Tax Liabilities (due within 2 years): $20,000
Goodwill: $25,000
Inventory: $80,000
Long-term Debt: $100,000
Long-term Investments: $50,000
Marketable Securities: $15,000
Patents: $10,000
Pension Obligations (due within 2 years): $15,000
Prepaid Expenses: $5,000
Retained Earnings: Y1?
Property, Plant, and Equipment (PPE): Y2?
Short-term Notes Payable: $20,000
Total Equity: $275,000

Requirement:
1. Calculate the Retained Earnings based on the total equity and other provided equity components. (
2. Calculate the value of Property, Plant, and Equipment (PPE) based on the total non-current assets p
to reflect a mixture of current and non-current items, including various equity components and liabilities.