Cashflow and Financial Analysis – BuyIt&Sell’em Pty Ltd
Case Study Background
BuyIt&Sell’em Pty Ltd (ABN 12 345 678 901) operates as a company and you are the accountant for them. BuyIt&Sell’em Pty Ltd is a wholesale business specialising in electronic equipment made in Australia. The business started its first month of the new year which started on 1st February 2021. You should have two months of data, being the manual accounting and the electronic accounting MYOB.
Requirements
You will need to prepare a cash flow statement for your business.
Once you have completed a cashflow statement then you will be required to prepare a short report on the financial position of the business.
BuyIt&sell’em Pty Ltd
Trial Balance as at 31st January 2021
Account Number
Account name
Debit
Credit
1001
Cash at Bank
17,191.00
1010
Accounts Receivable
5,600.00
1020
Inventory
11,970.00
1030
Prepaid Rent
–
1035
Prepaid Insurance
1,800.00
1040
Stationery Supplies
845.00
1110
Computers
4,500.00
1111
Accumulated Depreciation – Office Computers
300.00
1120
Warehouse Equipment
38,000.00
1121
Accumulated Depreciation – Warehouse Equipment
9,600.00
2001
Accounts Payable
9,500.00
2010
Wages Payable
1,197.00
2011
PAYG payable
2020
Cleaning Payable
2021
Utilities Payable
2035
Prepaid Revenue
3001
Share Capital
50,000.00
3010
Retained Earnings
9,309.00
3050
Dividends
79,906.00
79,906.00
BuyIt&sell’em Pty Ltd
Income Statement
For the month ended 31st March 2021
INCOME
Sales –
71,290.00
Sales returns and allowances
(3,000.00)
discounts received
554.80
TOTAL INCOME
68,844.80
COST OF SALES
Cost of Goods Sold
31,920.00
Discounts Allowed
271.90
TOTAL COST OF SALES
32,191.90
GROSS PROFIT
36,652.90
EXPENSES
Wages Expense
14,563.00
Rent Expense
3,000.00
Telecommunication Expense
980.00
Electricity expense
375.00
Insurance Expense
600.00
Vehicle Expense
400.00
Stationery Expense
270.00
Depreciation Expense
1,010.00
Loss on the sale of assets
2,900.00
Interest Expense
132.71
TOTAL EXPENSES
24,230.71
NET PROFIT/(LOSS)
12,422.19
BuyIt&sell’em Pty Ltd
Balance Sheet
as at 31st March 2021
ASSETS
Current Assets
Cash at Bank
66,364.90
Accounts Receivable
570.00
Inventory
4,180.00
Prepaid Rent
0.00
Prepaid Insurance
1,200.00
Stationery Supplies
575.00
Total Current Assets
72,889.90
Non-current Assets
Computers
4,500.00
Accumulated Dep’n – Office Computers
(700.00)
3,800.00
Forklift
22,750.00
Accumulated depreciation Forklift
(110.00)
22,640.00
Total Non-current Assets
26,440.00
TOTAL ASSETS
99,329.90
LIABILITIES
Current Liabilities
Accounts Payable
0.00
Wages Payable
1,026.00
Cleaning Payable
0.00
Prepaid Revenue
8,940.00
Total Current Liabilities
9,966.00
Non-current Liabilities
Loan – ABC Bank
17,632.71
TOTAL LIABILITIES
27,598.71
NET ASSETS
71,731.19
OWNER’S EQUITY
Share Capital
50,000.00
Retained Earnings
21,731.19
TOTAL EQUITY
71,731.19
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