Calculations Assignment Example | Topics and Well Written Essays - 1500 words

Calculations - Assignment Example352,000 Purchases ?150,000 Opening blood line ?65,000 Cost of Goods Available for Sale ?215, 000 Less Closing inventory ?70, 000 Cost of Goods Sold ?145, 000 Gross value ?207, 000 Property depreciation (5% using straight line method) ?5100 Plant and equipment depreciation (20% ) ?19500 Distribution cost ?58,000 Dividends paying ?12, 000 Administrative expenses outstanding ?4,500 Less distribution costs prepaid ?10, 000 Total Expenses ?77100 Net Profit ahead Tax ?129900 Corporation tax (22%) ?17500 Net Income ?112,400 c) disputation of financial position Julyfest Limited Balance planing machine for the year ended 31st May 2012 ASSETS Current Assets Inventory 70,000 Cash and cash equivalents 63,500 Account Receivables 87,000 pay distribution cost 10,000 Total Current Assets 230,500 Fixed Assets Property 102,000 Cost of plant and equipment 98,000 Less salt away Depreciation 30,000 Total Fixed Assets 170,000 TOTAL ASSETS 400,500 LIABILITIES Current Liabilities Trade payables 37,000 Interest Unpaid Bond 6,500 Taxes 17,500 Purchases 150,000 SHAREHOLDERS virtue Equity shares 100,000 Retained Profits 59,500 Share premium 30,000 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 400,500 Task Two Statement of cash flows provides important information to those using it as it provides information about the out flows and inflows that have interpreted place in a certain financial year or within a proper(postnominal) level of time (Baker 2005). The main enormousnesss of debate of cash flow are as discussed below. First statement of cash flows enables users to identify as sanitary as understand the sources from which the money used in the craft during a specific period as the uses into which these funds were used (Philips 2008). Other financial statements such as balance sheet and trial balances are not able show sources of funds as well uses into which these finances were put into use (Baker 2005). Statement of cash flow also plays an im portant role in enhancing management of businesses as well as management of business resources (Baker 2005). It also enhances planning of business funds as well as ensuring that business cash flows (outflows and inflows) conform to each other (Tailor 2003). This is as conflicting to other financial statements such as balance sheet which sole(prenominal) shows assets and liabilities of business. Balance sheet cannot distinguish for both cash outflows and cash inflows. Another grandness of statement of cash flow is that it shows how efficient an presidency is able to generate income (cash inflows) from its operation (Baker 2005). Other financial statements such as balance sheet which only shows assets and liabilities of business but cannot show shows how efficient an organization is able to generate income (cash inflows) from its operation (Philips 2008). Another importance of cash to those whose use it is that it is a report of funds that have been used during a specific period of time for various business activities (both short term and ache term) such organizations long term investment (Baker 2005). This information can also be shown by balance sheet. Another importance of cash to those whose use it is that it is a report of funds that have been received by the business during a specific period of time from various business activities such as debentures, share issue and loans among others (Baker