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Book/movie review
22/08/2022
1. Prepare an income statement and a classified statement of financial position.
The following items are taken from the financial statements of Adamato Ltd. for the year ended December 31, 2016:
Income tax expense $ 1,000
Accounts payable 19,500
Accounts receivable 4,000
Accumulated depreciation – equipment 4,800
Bonds payable 18,000
Cash 22,000
Common shares (2,500 shares issued)
25,000 Cost of goods sold
12,000 Depreciation expense 4,800
Dividends 300
Equipment 48,000
Goodwill 7,500
Interest expense 3,500
Retained earnings, beginning 16,000
Salaries expense 8,200
Sales revenue 32,500
Supplies 4,500
Market price per common share $4.50
2. Make 3 recommendations in terms of how the expenses can be managed to improve profitability
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