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You are provided with the following financial information for Caddy Shack Pty Ltd, a golf equipment

and
apparel retailer:

CADDY SHACK PTY LTD


COMPARATIVE BALANCE SHEETS
AS AT 30 JUNE

2019 2018

Current Assets
Cash on Hand $2 000 $4 000
Cash at Bank 1 400 -
Accounts Receivable (net) 4 800 4 950
Inventory 18 500 20 100
Prepaid Expenses 1 480 $28 180 890 $29 940
Non-Current Assets
Plant & Equipment 75 000 72 000
less Acc. Depreciation (25 700) 49 300 (19 700) 52 300
Total Assets 77 480 82 240

Current Liabilities
Bank Overdraft - 2 400
Accounts Payable 3 800 4 250
Accrued Expenses 920 850
Tax Payable 980 5 700 1 340 8 840
Non-Current Liabilities
Mortgage 18 000 20 000
Total Liabilities 23 700 28 840
Net Assets $53 780 $53 400

Equity
Share Capital 35 000 29 000
Retained Earnings 18 780 24 400
$53 780 $53 400

(continued .........)
CADDY SHACK PTY LTD
INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2019

Net Sales $104 000


Cost of Sales 61 800
Gross Profit 42 200
Other Revenue:
Discount Received 450
42 650
Expenses:
Selling & Admin Expense $26 160
Doubtful Debts Expense 430
Interest Expense 2 680 29 270
Profit before Tax 13 380
Income Tax Expense 4 000
Profit $ 9 380

Additional Information
 All asset purchases were made in cash.
 The Selling & Admin Expenses includes Depreciation expense of $6,000.
 During the year 12,000 shares were issued at 50c per share.