Notes to FS

Cash and cash equivalents

Cash on hand 148,900.00
Cash in bank - checking account 1,416,500.00
Cash in bank - savings account 35,500.00
Time deposit 500,000.00
Petty cash fund 25,000.00
Total 2,125,900.00

Financial assets
Trading securities 165,000.00

Trade and other receivables

Accounts receivable 100,750.00
Allowance for doubtful accounts - 35,000.00
Advances to employees 36,520.00
Total 102,270.00

Inventory
Raw materials 312,000.00
Work in process 585,000.00
Finished goods 989,000.00
Total 1,886,000.00

Prepaid expenses
Prepaid advertisement fee 83,500.00
Prepaid insurance expense 140,000.00
Prepaid rent 90,000.00
Supplies 78,500.00
Total 392,000.00

Other noncurrent assets

Cash in bank - restricted 300,000.00
Advances to officers 89,100.00
Bonds receivable 1,200,000.00
Total 1,589,100.00

Long-term investments
Time deposit 2,000,000.00
Investment in associate 650,000.00
Total 2,650,000.00

Property, plant and equipment

Land 600,000.00
Building 1,100,000.00
Accumulated depreciation - building 220,000.00
Transportation vehicle 750,000.00
Accumulated depreciation - transportation vehicle 225,000.00
Total 2,895,000.00

Intangible assets
Copyright 341,900.00
Trademark 421,610.00
Total 763,510.00

Trade and other payables

Accounts payable 395,600.00
Accrued expenses 48,950.00
Unearned revenues 137,500.00
Mortgage loan payable 1,500,000.00
Total 2,082,050.00

Current portion of long-term debts

Notes payable 350,000.00

Current tax liabilities

Income tax payable 489,560.00
Withholding taxes payable on rentals 45,620.00
Total 535,180.00

Noncurrent portion of long-term debt

Notes payable 1,400,000.00

Deferred tax liability

Deferred tax liability 120,000.00

Ordinary share 3,500,000.00

Preference share 1,500,000.00
Share premium 800,000.00
Treasury shares 326,000.00
Retained earnings 2,607,550.00
 Statement of Financial Position

Assets
Current assets
Cash and cash equivalents 2,125,900.00
Financial assets 165,000.00
Trade and other receivables 102,270.00
Inventory 1,886,000.00
Prepaid expenses 392,000.00
Total current assets 4,671,170.00
Noncurrent assets
Property, plant and equipment 2,895,000.00
Long-term investments 2,650,000.00
Intangible assets 763,510.00
Other noncurrent assets 1,589,100.00
Total noncurrent assets 7,897,610.00
Total 12,568,780.00

Liabilities and Shareholder's Equity

Current liabilities
Trade and other payables 2,082,050.00
Current portion of long-term debts 350,000.00
Current tax liabilities 535,180.00
Total current liabilities 2,967,230.00
Noncurrent liabilities
Noncurrent portion of long-term debt 1,400,000.00
Deferred tax liability 120,000.00
Total noncurrent liabilities 1,520,000.00
Total liabilities 4,487,230.00

Shareholder's equity
Ordinary share 3,500,000.00
Preference share 1,500,000.00
Share premium 800,000.00
Treasury shares - 326,000.00
Retained earnings 2,607,550.00
Total shareholder's equity 8,081,550.00
Total liabilities and shareholder's equity 12,568,780.00