Cashflow and Financial Analysis – BuyIt&Sell’em Pty Ltd

Case Study Background

BuyIt&Sell’em Pty Ltd (ABN 12 345 678 901) operates as a company and you are the accountant for them. BuyIt&Sell’em Pty Ltd is a wholesale business specialising in electronic equipment made in Australia. The business started its first month of the new year which started on 1^st February 2021. You should have two months of data, being the manual accounting and the electronic accounting MYOB.

Requirements

You will need to prepare a cash flow statement for your business.

Once you have completed a cashflow statement then you will be required to prepare a short report on the financial position of the business.

BuyIt&sell’em Pty Ltd
Trial Balance as at 31st January 2021
Account Number	Account name	Debit	Credit
1001	Cash at Bank	17,191.00
1010	Accounts Receivable	5,600.00
1020	Inventory	11,970.00
1030	Prepaid Rent	–
1035	Prepaid Insurance	1,800.00
1040	Stationery Supplies	845.00
1110	Computers	4,500.00
1111	Accumulated Depreciation – Office Computers		300.00
1120	Warehouse Equipment	38,000.00
1121	Accumulated Depreciation – Warehouse Equipment		9,600.00
2001	Accounts Payable		9,500.00
2010	Wages Payable		1,197.00
2011	PAYG payable
2020	Cleaning Payable
2021	Utilities Payable
2035	Prepaid Revenue
3001	Share Capital		50,000.00
3010	Retained Earnings		9,309.00
3050	Dividends
		79,906.00	79,906.00

BuyIt&sell’em Pty Ltd
Income Statement
For the month ended 31st March 2021


INCOME
Sales –	71,290.00
Sales returns and allowances	(3,000.00)
discounts received	554.80
TOTAL INCOME		68,844.80

COST OF SALES
Cost of Goods Sold	31,920.00
Discounts Allowed	271.90
TOTAL COST OF SALES		32,191.90
GROSS PROFIT		36,652.90

EXPENSES
Wages Expense	14,563.00
Rent Expense	3,000.00
Telecommunication Expense	980.00
Electricity expense	375.00
Insurance Expense	600.00
Vehicle Expense	400.00
Stationery Expense	270.00
Depreciation Expense	1,010.00
Loss on the sale of assets	2,900.00
Interest Expense	132.71


TOTAL EXPENSES		24,230.71

NET PROFIT/(LOSS)		12,422.19

BuyIt&sell’em Pty Ltd
Balance Sheet
as at 31st March 2021

ASSETS
Current Assets
Cash at Bank		66,364.90
Accounts Receivable		570.00
Inventory		4,180.00
Prepaid Rent		0.00
Prepaid Insurance		1,200.00
Stationery Supplies		575.00
Total Current Assets			72,889.90
Non-current Assets
Computers	4,500.00
Accumulated Dep’n – Office Computers	(700.00)	3,800.00
Forklift	22,750.00
Accumulated depreciation Forklift	(110.00)	22,640.00
Total Non-current Assets			26,440.00
TOTAL ASSETS			99,329.90

LIABILITIES
Current Liabilities
Accounts Payable		0.00
Wages Payable		1,026.00
Cleaning Payable		0.00
Prepaid Revenue		8,940.00
Total Current Liabilities		9,966.00
Non-current Liabilities
Loan – ABC Bank		17,632.71
TOTAL LIABILITIES			27,598.71
NET ASSETS			71,731.19
OWNER’S EQUITY
Share Capital		50,000.00
Retained Earnings		21,731.19

TOTAL EQUITY			71,731.19

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University	The Royal Melbourne Institute of Technology (RMIT)
Subject	ACCT2033: Financial Accounting and Analysis

ACCT2033: Cashflow and Financial Analysis – BuyIt&Sell’em Pty Ltd operates as a company and you are the accountant for them: Financial Accounting and Analysis Assignment, RMIT, Singapore

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