Smoky valley company case
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CASE 2 Smoky Valley Café Case Presented by: Anvesh Lanka Fenella Andrade Mallesh Goudar Nipun Jain Masters in European Studies and Management (MESM) 2010-2012 Manipal Centre for European Studies Manipal University, Karnataka, India
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Transcript of Smoky valley company case
CASE 2
Smoky Valley Café Case
Presented by: Anvesh Lanka Fenella Andrade Mallesh Goudar Nipun Jain
Masters in European Studies and Management (MESM) 2010-2012
Manipal Centre for European StudiesManipal University, Karnataka, India
Assets+ Expenses + Dividends/Drawings
Liabilities +Capital +Income /Revenue
Cash 6,000
Capital 6,000
Assets+ Expenses + Dividends/Drawings
Liabilities +Capital +Income /Revenue
Cash 1500
Capital 6,000
Land 2,500Building 10,500Development 2,000Equipment 1,000
Mortgage 11,500
Total 17,500
Total 17,500
As of August 12th 1946
Assets+ Expenses + Dividends/Drawings
Liabilities +Capital +Income /Revenue
Cash 1,465
Capital 6,000
Land 2,500Building 10,500Development 2,000Equipment 1,000Deposit 35
Mortgage 11,500
Total 17,500
Total 17,500
As of August 15th 1946
Assets+ Expenses + Dividends/Drawings
Liabilities +Capital +Income /Revenue
Cash 1,049.05
Capital 6,000
Land 2,500Building 10,500Development 2,000Equipment 1,000Deposit 35Additional Equipment 415.95
Mortgage 11,500
Total 17,500
Total 17,500
As of October 1946
Assets+ Expenses + Dividends/Drawings
Liabilities +Capital +Income /Revenue
Cash 1,449.05
Capital 6,000
Land 2,500Building 10,500Development 2,000Equipment 1,000Deposit 35Additional Equipment 415.95
Mortgage 11,500Loan 400
Total 17,900
Total 17,900
As of November 1946
Assets+ Expenses + Dividends/Drawings
Liabilities +Capital +Income /Revenue
Cash 75.13In Hand 65.35At Bank 9.78
Capital 6,000Loan 400
Smoky Valley Café 16,000
Mortgage 10,800
Extra Equipment 415.95Depreciation -322.09
Creditors 92.01
Supplies 100Payment on Mortgage 700Deposit on Beer 35Operating Expenses 610.11
Depreciation 322.09Land Improvements 44.45Buildings 233.45Café Equipment 44.19
Total 17614.10
Total 17614.10
As of December 16th 1946
INCOME STATEMENT
Value of assets on Dec 16th (Income) =16303.99 (75.13+100+415.95+16000-322.09)
Value of Liabilities on Dec 16th (Expenses) = 17292.01 (6400+10800+92.01)
Loss = 16303.99 – 17292.01 = 988.02
BALANCE SHEETLIABILITIES ASSETS
Capital 6,400
Cash 75.13
Mortgage 10,800Creditors 92.01
Total Assets 16,000Land 2,500Building 10,500Development 2,000Equipment 1,000
Additional Equipment 415.95
Loss - 988.02
Accumulated Depreciation -322.09
Supplies 100
Deposit 35
Total 16,303.99
Total 16,303. 99
EQUITIES Contributions to Capital
Mrs. Bevan = 2400
Mr. Maywood = 2000
Mrs. Maywood = 2000
Total Loss = 988.02 Equal Split on Loss [1/3] = 329.34
Equities on December 16th
Mrs. Bevan = 2400 – 329.34 = 2070.66
Mr. Maywood = 2000 – 329.34 = 1670.66
Mrs. Maywood = 2000 – 329.34 = 1670.66
