METODE EXIT PRICE Circle Ltd

1 Inventory 30000 Income Statement

AP 30000 Sales
2 AR 75000 COGS
Sales 75000 Gross Profit at historical cost
Price Adj 10000 Price Adj - beginning inventory
Inventory 10000 Price Adj - ending inventory
COGS 29000 Gross Profit at exit price
Inventory 29000 Operational Expense
3 Building 110000 Income from operation
Inventory 13000 Interes expense
Land 10000 Gain on sale Land
Investment in Y shares 5000 Change in Value
Discount on Bond Pay 4968 Building
Price Adj 142968 Land
4 AR 10000 Investment in Y shares
Land 10000 Discount on Bond Pay
5 Operating Expense 15000 Purchasing Power Adj
Interest Expense 5000 Net Income
Cash 20000
6 Purchasing Power Adj 17000 Circle Ltd
Capital Maintenance 16667 Statement of Retained Earning
RE 333 RE, 1 Jan 10
Add:
1-Jan 31-Dec Adj Net Income
CS 75000 90000 15000 Purchasing Power Adj
Capital 8333 10000 1667 RE, 31 Des 10
RE 1667 2000 333
Equity 85000 102000 17000
 Circle Ltd Circle Ltd
Income Statement Statement of Financial Position
75000 31 December Year 10
-29000 Cash 10000 AP
46000 AR 75000 Bond Pay
-10000 Inventory 19000 Discount
13000 Investment in Y 25000
49000 Building 200000 CS
-15000 Land 10000 Capital Maintenance Adj
34000 RE
-5000 Total Aset 339000
5000

110000
5000
5000
4968 124968
-17000
141968

Circle Ltd
Statement of Retained Earning
1667

141968
333
143968
tion

50000
50000
-4968
45032
75000
25000
143968
339000