What journal entries explain the change in the total inventory accounts in 2009? You may assume that all labor and raw material purchases are paid in cash, all overhead is depreciation and there is no obsolescence. The inputs into work-in process are 60% raw materials, 25% overhead and 15% labor.
What journal entries explain the change in the total inventory accounts in 2009? You may assume that all labor and raw material purchases are paid in cash, all overhead is depreciation and there is no obsolescence. The inputs into work-in process are 60% raw materials, 25% overhead and 15% labor.
BALANCE SHEETS
At March 31, 2009
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| Non-current assets | ||
| Property, plant and equipment | 314 | 365 |
| Construction in progress | 47 | 51 |
| Intangible assets | 1853 | 1838 |
| Available-for-sale securities | 102 | 68 |
| Other | 205 | 172 |
| 2521 | 2494 | |
| Current Assets | ||
| Inventories | 450 | 472 |
| Trade receivables, net | 728 | 861 |
| Other | 746 | 1182 |
| Cash and cash equivalents | 1863 | 2191 |
| 3787 | 4706 | |
| Total Assets | 6308 | 7200 |
| Share capital | 1136 | 1180 |
| Reserves | 175 | 433 |
| Total equity | 1311 | 1613 |
| Non-current liabilities | 891 | 1098 |
| Current liabilities | ||
| Trade payables | 1991 | 2282 |
| Provisions and accruals | 1510 | 1945 |
| Income Tax payable | 89 | 87 |
| Bank loans | 20 | 61 |
| Current portion of long-term debt | 437 | 49 |
| Other | 59 | 65 |
| 4106 | 4489 | |
| Total Liabilities | 4997 | 5587 |
| Total liabilities and equity | 6308 | 7200 |
| INCOME STATEMENT | |
| For the year ended March 31, 2009 | |
| 2009 | |
| Sales | 14901 |
| Cost of sales | 13160 |
| Gross profit | 1741 |
| Selling, distribution and other expenses | -1103 |
| Administrative expenses | -628 |
| Research and development expense | -220 |
| Operating loss | -210 |
| Interest income | 62 |
| Interest expense | -40 |
| Loss before taxes | -188 |
| Taxation | -38 |
| Loss for year | -226 |
| CASH FLOW STATEMENT | |
| For the year ended March 31, 2009 | |
| 2009 | |
| Cash flows from operating activities | |
| Net income | -226 |
| Depreciation and amortization | 281 |
| Gain/loss on sale of equipment and other assets | -1 |
| Change in receivables | 616 |
| Change in inventories | 26 |
| Change in payables | -692 |
| Other | -59 |
| Net cash generated from operating activities | -55 |
| Purchase of property, plant and equipment | -107 |
| Proceeds from sales of property, plant and equipment | 11 |
| Construction of property, plant and equipment in process | -64 |
| Purchases of intangible assets | -17 |
| Proceeds from sales of securities available for sale | 10 |
| Net cash used in investing activities | -173 |
| Exercise of share options | 10 |
| Repurchase of shares | -54 |
| Dividends paid | -178 |
| Increase in bank borrowings | 122 |
| Net cash used in financing activities | -100 |
| Change in Cash | -328 |
footnotes: 2009 2008
Raw Materials 72 210
Work-in-process 109 57
Finished goods 269 205
Total 450 472
construction in progress 2009
beg year 51
add paid in cash 64
transfers to property-plANT EQUIP -68
END OF YEAR 47
