Question 1 Blue River Mountain Resort had the following cash transactions over the financial year ending...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 Blue River Mountain Resort had the following cash transactions over the financial year ending 30 June 2022. Opening cash balance, 1 July 2021 was $5,500. Transaction Acquisition of building Received loan funds Payment to employees Income Tax paid Sold machinery Drawings Paid bank interest Paid suppliers for inventory Cash sales Amount $675,000 $250,000 $52,800 $4,250 $220,000 $6,000 $1,529 $109,075 $305,350 a. Prepare a Cash Flow statement for Blue River Mountain Resort for the year ending 30 June 2022 using the information provided. [6 marks] b. Explain why sales made on credit terms are not included in the Cashflow Statement. Your answer should include an explanation of the difference between accrual and cash accounting (max 300 words). [5 marks] c. Explain whether this business could possibly have a profit in the Income Statement. Explain your answer by providing an example. (max 300 words). [4 marks] [Total for Question 1 = 15 marks] Question 1 Blue River Mountain Resort had the following cash transactions over the financial year ending 30 June 2022. Opening cash balance, 1 July 2021 was $5,500. Transaction Acquisition of building Received loan funds Payment to employees Income Tax paid Sold machinery Drawings Paid bank interest Paid suppliers for inventory Cash sales Amount $675,000 $250,000 $52,800 $4,250 $220,000 $6,000 $1,529 $109,075 $305,350 a. Prepare a Cash Flow statement for Blue River Mountain Resort for the year ending 30 June 2022 using the information provided. [6 marks] b. Explain why sales made on credit terms are not included in the Cashflow Statement. Your answer should include an explanation of the difference between accrual and cash accounting (max 300 words). [5 marks] c. Explain whether this business could possibly have a profit in the Income Statement. Explain your answer by providing an example. (max 300 words). [4 marks] [Total for Question 1 = 15 marks]
Expert Answer:
Related Book For
Bank Management and Financial Services
ISBN: 978-0078034671
9th edition
Authors: Peter Rose, Sylvia Hudgins
Posted Date:
Students also viewed these accounting questions
-
Why is it unlikely that there will not be a discharge after the bankruptcy of a corporation?
-
Benita is concerned that she will not be able to complete her tax return by April 15. Can she request an extension to file her return? By what date must she do so? If so, what is the latest date that...
-
Benita is concerned that she will not be able to complete her tax return by April 15. Can she request an extension to file her return? By what date must she do so? Assuming she requests an extension,...
-
Problem 4.2 Ask the user to enter his/her age, with the prompt: "How old are you? Please enter your age as a number between 0 and 120. -> ". Check that what was entered is a number between 0 and 120....
-
Smart Cookie Corpora-tion purchased 40% of the 320,000 outstanding shares of JTs Fine Foods, Inc. on January 1 of the current year. Smart Cookie acquired the shares at a price of $ 3.20 per share....
-
Prepare the statement of retained earnings of Centerpiece Arrangements for the year ended December 31, 2018. Centerpiece Arrangements has just completed operations for the year ended December 31,...
-
What are the three components of the triple constraint?
-
The following gives the number of pints of type A blood used at Woodlawn Hospital in the past 6 weeks: Week of Pints Used 31-Aug .........360 7-Sep .........389 14-Sep...........410...
-
While scrolling through your favorite social media site, apicture of Philodendron ?a common houseplant?catchesyour eye. Your friend says about the photo, ?This houseplant and Iare best friends. It?s...
-
The balances in the general ledger accounts of Thunder Graphics are shown below. Instructions On the forms provided in your working papers: 1 . Open the accounts in the general ledger with their...
-
In Green Bay and Appleton, Wisconsin, the average height ofhemlock trees is normally distributed within each city. Lilith istrying to determine if one towns trees are taller than the othertowns trees...
-
On January 1, Moran Inc. entered into a noncancelable 10 -year lease for computer equipment with a fair value of $120 million and requiring annual $16.304 milion year-end lease payments. The...
-
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to...
-
In Amazon's most recent annual report it states, "Property and equipment are stated at cost less accumulated depreciation and amortization." The incentives that Amazon receives from their property...
-
Snoop's Bakery makes and sells cakes and cookies. Snoop Dogg is concerned about the continued losses shown by the cookie segment and wants to see whether or not the line should be dropped. Cookies...
-
Sam Strother and Shawna Tibbs are vice presidents of Mutual of Seattle Insurance Company and co-directors of the company's pension fund management division. An important new client, the North-Western...
-
Make a financial forecast for a small tea shop. sample has given below. Financial forecasting We will need a budget of BDT 2million we will get it from the sponsors. Since it is not possible to...
-
Design a circuit which negative the content of any register and store it in the same register.
-
Runnals National Bank has experienced the following trends over the past five years (all figures in millions of dollars): Input Area: 1 2 3 4 5 Net Income (after tax) 2.65 2.75 3.25 3.65 4.00 Total...
-
What factors appear to influence the growth and mix of loans held by a lending institution?
-
According to recent research, does capital prevent a financial institution from failing?
-
Does statelessness exist in wealthy countries such as the United States? How does the status of the "Dreamers" (people who entered the United States illegally as young children) compare with that of...
-
How does political organization relate to social differentiation?
-
What are stratified societies and what kinds of social systems are they identified with?
Study smarter with the SolutionInn App