IIT Wasington State that explosively Is uno rupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget Flights (q) 54 54 52 $ 16,200 $18,360 $17,680 Revenue ($340.00g) Expenses: Wages and salaries ($3,400 + $86.00q) Fuel ($33.00q) Airport fees ($820 + $34.00g) Aircraft depreciation ($11.00q) Office expenses ($220 + $1.00q) Total expense 8,012 1,946 2,506 8,044 1,782 2,656 7,872 1,716 2,588 594 594 572 442 274 272 13,500 13,350 13,020 $ 2,700 $ 5,010 $ 4,660 Net operating income he company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an ntire plane for an overflight at a discount. equired: Prepare a flexible budget performance report for July that includes revenue and spending variances and activity ariances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" or no effect (i.e., zero variance). Input all amounts as positive values.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Planning Budget Actual Results Budget Flights 54 54 5: Revenue $ 16,200 $ 18,360 $ 17,68 Expenses: Wages and salaries 8,012 8,044 7,87. Fuel 1,946 1,782 1,71 Airport fees 2,506 2,656 2,58 Aircraft depreciation 594 594 57 Office expenses 442 274 27 Total expense 13,500 13,350 13,02
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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