As a recent graduate of a cooking course, James Brady is considering investing in a caf...
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As a recent graduate of a cooking course, James Brady is considering investing in a café that his best friend, Toby Dwyer, owns. Following are selected items from financial records of the café. Credit card sales Accounts payable Food supplies Outstanding bank loan Rent payable Accounts receivable Required $56 000 12 400 29 500 22 000 14 800 7 200 Operating expenses paid GST receivable Cash at bank Loan payment Cash sales Payment to suppliers $18 000 4 900 13 200 12 000 28 500 21 000 a. Calculate (i) cash inflows, (ii) cash outflows, (iii) assets and (iv) liabilities for Toby's cafe business. b. Based on requirement (a), what can James infer in relation to investing in Toby's cafe? c. What other business information should James seek to make the decision of whether to invest in Toby's business? As a recent graduate of a cooking course, James Brady is considering investing in a café that his best friend, Toby Dwyer, owns. Following are selected items from financial records of the café. Credit card sales Accounts payable Food supplies Outstanding bank loan Rent payable Accounts receivable Required $56 000 12 400 29 500 22 000 14 800 7 200 Operating expenses paid GST receivable Cash at bank Loan payment Cash sales Payment to suppliers $18 000 4 900 13 200 12 000 28 500 21 000 a. Calculate (i) cash inflows, (ii) cash outflows, (iii) assets and (iv) liabilities for Toby's cafe business. b. Based on requirement (a), what can James infer in relation to investing in Toby's cafe? c. What other business information should James seek to make the decision of whether to invest in Toby's business?
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a Lets calculate the requested financial items for Tobys caf business i Cash Inflows Credit card sal... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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