Prepare a cash flow statement for Perfect Cover Insurance Broker and please show all the calculations.
Prepare a cash flow statement for Perfect Cover Insurance Broker and please show all the calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare a cash flow statement for Perfect Cover Insurance Broker and please show all the calculations.
![Following her attempts to expand Rita is keen to understand more about the position
her business is in. While she has been able to create some accounting reports, which she
has provided below with some extra notes, she is not really clear on what they are telling
her (although she is happy to see she has made a profit).
Perfect Cover Insurance Brokers
INCOME STATEMENT
FOR THE YEAR ENDED JUNE 30
Net Sales
33,700
COGS
14,650
19,050
Other Revenue:
Commissions
20,800
Expenses:
Operating Expenses
Miscellaneous Expenses
17,760
1,220
Doubtful Debts Expense
3,073
Depreciation Expenses
11,893
Interest Expense
900
Loss on Coffee Machine
950
35,796
Profit / Loss
4,054
On the last day of the period Rita's office equipment (coffee machine) exploded and had
to be scrapped. Rita replaced the old machine which had a cost of $980 with a new one
which was paid for in cash. At the time of disposal, the old coffee machine had
accumulated depreciation of $30.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67abc2e1-9065-42f6-ae46-0b6cc8bf5085%2F8c858e39-ccf0-4d55-9dc4-560d8ff41c66%2F6dl6yod_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Following her attempts to expand Rita is keen to understand more about the position
her business is in. While she has been able to create some accounting reports, which she
has provided below with some extra notes, she is not really clear on what they are telling
her (although she is happy to see she has made a profit).
Perfect Cover Insurance Brokers
INCOME STATEMENT
FOR THE YEAR ENDED JUNE 30
Net Sales
33,700
COGS
14,650
19,050
Other Revenue:
Commissions
20,800
Expenses:
Operating Expenses
Miscellaneous Expenses
17,760
1,220
Doubtful Debts Expense
3,073
Depreciation Expenses
11,893
Interest Expense
900
Loss on Coffee Machine
950
35,796
Profit / Loss
4,054
On the last day of the period Rita's office equipment (coffee machine) exploded and had
to be scrapped. Rita replaced the old machine which had a cost of $980 with a new one
which was paid for in cash. At the time of disposal, the old coffee machine had
accumulated depreciation of $30.
![Perfect Cover Insurance Brokers
COMPARATIVE BALANCE SHEETS
AS AT JUNE 30
Closing Balances
Opening Balances
Current Assets
Cash on Hand
833
817
Cash at Bank
10,114
6,540
Accounts Receivable
23,287
14,842
Less Allowance
2,573
20,714
1,442
13,400
Inventory
6,300
5,200
Prepaid Insurance
800
38,761
260
26.217
Non Current Assets
Office Furniture
3,000
3,000
less Acc. Depreciation
Office Equipment
less Acc. Depreciation
600
2,400
300
2,700
5,220
5,000
470
4,750
5,000
Vehicles
35,200
35,200
less Acc. Depreciation
12,160
23,040
6,400
28,800
Building
40,000
40,000
less Acc. Depreciation
18,667
21,333
13,334
26,666
Land
60,000
60,000
Total Assets
150.284
149,383
Current Liabilities
Accounts Payable
6,100
7,960
Accrued Expenses
750
6,850
585
8,545
Non Current Liabilities
Loan
7,600
2,600
Total Liabilities
14,450
11,145
Net Assets
135.834
138,238
Equity
Capital
135.834
138.238](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67abc2e1-9065-42f6-ae46-0b6cc8bf5085%2F8c858e39-ccf0-4d55-9dc4-560d8ff41c66%2F6kx55ng_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Perfect Cover Insurance Brokers
COMPARATIVE BALANCE SHEETS
AS AT JUNE 30
Closing Balances
Opening Balances
Current Assets
Cash on Hand
833
817
Cash at Bank
10,114
6,540
Accounts Receivable
23,287
14,842
Less Allowance
2,573
20,714
1,442
13,400
Inventory
6,300
5,200
Prepaid Insurance
800
38,761
260
26.217
Non Current Assets
Office Furniture
3,000
3,000
less Acc. Depreciation
Office Equipment
less Acc. Depreciation
600
2,400
300
2,700
5,220
5,000
470
4,750
5,000
Vehicles
35,200
35,200
less Acc. Depreciation
12,160
23,040
6,400
28,800
Building
40,000
40,000
less Acc. Depreciation
18,667
21,333
13,334
26,666
Land
60,000
60,000
Total Assets
150.284
149,383
Current Liabilities
Accounts Payable
6,100
7,960
Accrued Expenses
750
6,850
585
8,545
Non Current Liabilities
Loan
7,600
2,600
Total Liabilities
14,450
11,145
Net Assets
135.834
138,238
Equity
Capital
135.834
138.238
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