a) Create a new table and redo the calculations to check the arithmetic accuracy of the table below.

b) Is there a difference in calculations between the two tables?

c) Identify the cause of the difference if there is one.

d) Which table should be relied on and why?

 

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2018 2019 2020 Actual Actual Actual $524,207 $1,884,495 Opening cash $1,085,308 $1,570,413 $320,000 Sales $2,261,394 Contribution Opening cash and cash inflows Less cash outflows Payments for inventory Payments for wages Payments for rates and utilities Purchase of equipment and fittings Payments to the owner (drawings) Payments for insurance Payments for rent of premises Total cash outflows Ending balance of cash $1,890,413 $2,408,702 $3,346,702 $812,632 $975,158 $118,656 $18,950 $1,170,190 $122,904 $113,873 $18,700 $220,000 $80,000 $19,424 $80,000 $21,630 $189,000 $80,000 $21,000 $180,000 $1,366,205 $524,207 $22,279 $198,450 $1,533,247 $1,813,455 $1,323,394 $1,085,308 2018 2019 2020 Actual Actual Actual $524,207 $1,884,495 Opening cash $1,085,308 $1,570,413 $320,000 Sales $2,261,394 Contribution Opening cash and cash inflows Less cash outflows Payments for inventory Payments for wages Payments for rates and utilities Purchase of equipment and fittings Payments to the owner (drawings) Payments for insurance Payments for rent of premises Total cash outflows Ending balance of cash $1,890,413 $2,408,702 $3,346,702 $812,632 $975,158 $118,656 $18,950 $1,170,190 $122,904 $113,873 $18,700 $220,000 $80,000 $19,424 $80,000 $21,630 $189,000 $80,000 $21,000 $180,000 $1,366,205 $524,207 $22,279 $198,450 $1,533,247 $1,813,455 $1,323,394 $1,085,308

Answer rating: 100% (QA)

2019 2018 Actual Opening cash Sales Contribution Actual 444208 1884495 2020 Actual 925309 2261394 15... View the full answer