Sigma Limited income statement year ended 31-12-2020              R’000sSigma Limited balance sheet as at 31-12-2020                        R’000sSales                                            55 000Cost of sales                                30 500Operating expenses                     18 500Operating income                           6 000Interest                                           1 000Profit before tax                              5 000Company tax rate                             50%ASSETSFixed assetsNet fixed assets                   120 500Current assetsInventories                             74 500Other current assets              70 000TOTAL ASSETS                 265 000 EQUITY AND LIABILITIESOwners equity                     155 000LiabilitiesLong-term loans                     95 500Current liabilities                    14 500TOTAL EQUITY AND          265 000 LIABILITIES                                          The return on equity exceeds the return on total assets by …Select one:a.0.00%b.0.47c.0.67%d.0.06%

You've been provided with the following Trial BalanceCalculate TOTAL ASSETSCash 25,450Accounts Receivable 25,500Inventory 85,000Prepaid Expenses 4,950Motor vehicle 68,000Equipment 155,000Accounts Payable 35,000Unearned Revenue 8,000Wages Payable 15,000Bank Loan 50,000Share Capital 235,000Retained Earnings 10,000Dividends -5,000Revenue 53,650Cost of Sales -12,450Wages Expense -15,000Interest expense -2,500Marketing expense -2,800Insurance expense -5,000

Sigma Field Ltd. reported a profit of $95,000 for the year. The statement of profit or loss showed that depreciation expense was $12,000 and a gain on the sale of a truck of $7,500. The statement of financial position showed a decrease in accounts receivable of $15,000 for the year, an increase in inventory of $8,000 and a decrease in accounts payable of $5,000.RequiredPrepare a reconciliation of operating profit to cash flows from operating activities using the indirect method.

The following information was available for the year ended December 31, 2022:Earnings before interest and taxes (operating income) $ 50,000Interest expense 10,000Income tax expense 12,000Net income 28,000Total assets at year-end 200,000Total liabilities at year-end 120,000The debt ratio at December 31, 2022 was:

Required:Calculate Finney’s Capital at the end of the year. (2 marks)b) Eliza Enterprises has the following account balances at the end of thefinancial period (all figures are in shillings) as at December 31, 2015:Service revenue 700,000Capital 150,000Equipment 200,000Operating expenses 625,000Cash 175,000Drawings 50,000Supplies 25,000Accounts payable 100,000Accounts receivable 75,000Required:i) Prepare Eliza’s income statement for the period ending December31, 2015.ii) Compute Eliza’s working capital as at December 2015. (4 marks)P.O. Box 6215700200 Nairobi - KENYATelephone: 891601-6Fax: 254-20-891084E-mail:[email protected]. M. E. C. E. A

Which of the following should be closed to Income Summary?*a. Accumulated Depreciationb. Withdrawalsc. Salary Expensed. All of these