Post on 05-Jan-2016
Session 3Case studies and Solutions
Nursery ManagementUnderstanding and Managing Finance
McLaney and Atrill Exercise 2.1 and 2.1 p 54
Wrapping Paper Accounts (End of Day 3)
Cash Flow
Op. Bal. £63
Sale £32
£95
Cash paid -£46
C. Bal. £49
Profit and Loss
Sales £32
Cost of goods -£23
Profit . £9
Balance Sheet
Cash £49
Stock £28
Total Wealth £77
NB this is just the asset side of the Balance Sheet
NB this is just the asset side of the Balance Sheet
McLaney and Atrill Exercise 2.1 and 2.1 p 54
On day 4, Paul purchases stock for £53 in cash. During the day he sells stock that cost £33 for £47.
Construct a cash flow statement, profit and loss account and a balance sheet. for the fourth day.
McLaney and Atrill Exercise 2.1 and 2.1 p 54
Wrapping Paper day 3
Cash Flow
Op. Bal. £49
Sale £47
£96
Cash paid -£53
C. Bal. £43
Profit and Loss
Sales £47
Cost of goods -£33
Profit . £14
Balance Sheet
Cash £43
Stock £48
Total Wealth £91
Can you now account for the ‘Total Wealth ‘figure?
Can you now account for the ‘Total Wealth ‘figure?
McLaney and Atrill Exercise 2.1 and 2.1 p 54 - Solution
Wrapping Paper - Total Wealth
Cash on Day 1 £40
Profit Day 1 £15
Profit Day 2 £13
Profit Day 3 £9
Profit Day 4 £14
Total £91
Balance Sheet
Cash £43
Stock £48
Total Wealth £91
Can you now create the right hand side to the Balance sheet?
Can you now create the right hand side to the Balance sheet?
McLaney and Atrill Exercise 2.1 and 2.1 p 54- Solution
Wrapping Paper Balance Sheet
CLAIMS
Owner’s Capital £40
Retained Profits £51
Total £91
ASSETS
Cash £43
Stock £48
Total £91